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PhotograpHc 

Sciences 
Corporation 


33  WEST  MAIN  STREET 

WEBSTIR.N.Y.  I4SB0 

(716)  87:-4SU3 


CIHM/ICMH 

Microfiche 

Series. 


CIHM/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Microreproductions  /  Institut  Canadian  de  microreproductions  historiques 


t^ 


vV 


1981 


Technical  ar.a  Bibliographic  Notes/Notes  techniques  et  bibliographiques 


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empreinte. 

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dernidre  image  de  cheque  microfiche-  selon  le 
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method: 


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et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  n6cessaire.  Les  diagrammes  suivants 
illustrent  la  mdthode. 


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'% 


54th  Congress,  )    HOUSE  OF  EEPEESENTATiVES.     (  Report 
1st  Session.       j  {No.L>2(i3. 


EEPORT 


OF  TUB 


COMMITTEE  OiN  WAYS  AND  MEANS 


CONCEKNINO 


RECIPROCITY  11 COJIHERCIAL  TREATIES. 


Junk  6,  1896.— Submitted  by  Mr.  IIoi-kins,  from  the  Couimitteo  on  Wava  and 
Muaus,  uud  ordered  to  bu  printed 


-•♦-♦■•♦- 


WASnmGTOTT: 

OOVEENMENT  PKINTUMG  OFFIOB. 
i89G, 


Subcommittee: 


ALBERT   J.  HOPKINS, 

Chairman. 

JONATHAN   P.  DOLLIVER. 

JAMES   A.  TAV/NEY. 

BENTON    McMILLIN. 

JOHN    L.  McLAURIN. 


WILLIAM    E.  CURTIS, 

Special  Agent  in  Charge. 


TABLE   OF  C0:N^TE]N'TS. 


I.  Introductory r 

11.  Hi.story  of  the  reciprocity  policy g 

III.  Results  of  reciprocity jj 

IV.  Protests  against  the  repeal  of  reciprocity 21 

V.  Elloct  of  reciprocity  upon  the  exports  of  breadstufl's 27 

VI.  The  situation  in  France  and  Germany og 

VII.  DiscrimiuationH  a<,'ainst  American  commerce 38 

V^III.  The  situation  in  Cuba aq 

IX.  Present  condition  of  the  export  trade 43 

Views  of  the  minority  of  the  committee 53 

Ajipendix —  . 

A.  Reciprocity  with  Canada gj 

li.  Trade  with  the  Argentine  Republic  and  Uruguay 77 

C.  Trade  with  Japan  and  China jqcj 

D.  Adulterated  foods  exported  to  the  United  States 125 

E.  Restriction  upon  American  products  by  foreign  countries 135 

F.  Replies  from  commercial  and  industrial  organizations  to  inquiries 145 

G.  Addresses  before  Committee  on  Ways  and  Means  by  representativof 

of  the  live-stock  industry jq, 

U.  Addresses  by  representatives  of  the  flour  industry 2OI 

I.  Addresses  by  representatives  of  various  industries 263 

J.  Replies   from  merchants,  manufacturers,   exporting   and  connnission 

houses,  steamship  companies,  etc 293 

K.  The  foreign  commerce  of  the  United  States 547 

L.  Rates  of  duty  imposed  by  foreign   countries  upon  articles  exported 

from  the  United  States ,^0 

Index  to  appendixes ,..,_ 

8 


I. 

mTRODUOTOKY. 


The  Committee  on  Ways  and  Means,  to  which  was  referred  sundry 
bills  and  resolutions  relating-  to  reciprooity  agrocmeSs    eoLn  S 

subieJ^'^'i'efo.rlf^'^J  '^1''^^'^  ^''^^  '"^'"  intelligent  consideration  to  the 
suujects  leteired  to  them,  your  comm  ttee,  by  public  aiinoniu.en,o,.f 
ai.d  otherwise,  invited  representatives  of  the  ^la    ous  a^trZiis  r  os 
and  occupations  interested  to  appear  before  them  L  the^)ur  ose  of 

ects  under  consideration,   your  committee  alio  cauTed  circulars  of 

m(  nts  s  lalJ  be  renewed  and  negotiated  with  other  nations  ti.H  fl  •  V 71^ 

he  SL'uJ'S^"  I^«'--'<^"t'y  a^lopted  in  futir/^Satfo^^^^^^^^ 
tut  taiill  and  the  foreigii  commerce  of  this  country.  Huctunj, 


n. 


HISTORY  OF  THE  EEOIPROCITY  POLICY. 


The  active  endeavor  to  extend  the  exi)oit  trade  of  the  United  States 
in  the  Latin-American  liepublics  and  colonies  by  means  of  reciprocity 
treaties  was  inangurated  by  President  Arthur  in  18(S2,  wlien  (icn. 
Ulysses  S.  Grant  and  William  Henry  Trescot,  representing  this  (lov- 
ernmcnt,  and  IVIatias  llomero  and  Estanislao  Canedo,  representing  the 
Itepublic  of  Mexico,  negotiated  a  treaty  undi-r  which  certain  merchan- 
dise froni  the  United  States  ^yas  to  be  admitted  free  of  duties  into 
Mexico,  and  certain  products  of  that  country  were  to  be  admitted  tree 
into  the  United  States.  But  the  Congress  of  the  United  States  failed 
to  enact  the  legislation  necessary  to  carry  it  into  effect,  and  the  treaty 
expired  by  limitation  upon  the  20th  of  May^  1S.S7. 

In  1884,  John  AV.  Foster,  then  minister  to  Spain,  negotiated  a  similar 
treaty  with  that  Government,  acting  in  behalf  of  its  American  colonies, 
Cuba  and  Puerto  liico.  A  third  treaty  was  negotiated  by  Mr.  Freling- 
huysen,  then  Secretary  of  State,  with  Don  .Manuel  J.  Galvan,  a  i)leni- 
l)otentiary  appointed  for  that  purpose  by  the  Government  of  Santo 
Domingo.  Both  of  these  treaties  failed  to  receive  the  sanction  of  the 
Senate  of  the  United  States. 

THE  SOUTH  AMERICAN  COMMISSION. 


During  the  same  year,  1884,  under  the  autliority  of  Congress,  Presi- 
dent Arthur  ai)pointed  a  commission  "to  ascert.ain  the  best  modes  of 
securing  nuu-e  Intimate  international  and  commercial  relations  between 
the  United  States  and  the  several  countries  of  Central  and  South 
America."  This  commission  was  composed  of  George  H.  Sharpe,  of 
New  York,  Thomas  C.  Beynolds,  of  Missouri,  and  Solon  O.Thacher,  of 
Kansas,  with  William  E.  Curtis  as  secretary.  Mr.  Sharpe  having 
resigned  in  March,  1885,  Mr.  Curtis  was  appointed  by  President 
Cleveland  to  succeed  him. 

This  commission  visited  the  several  American  Eepublics  with  instruc- 
tions (1)  to  ascertain  by  inquiry  the  opinion  of  merchants  actually 
engaged  in  trade  concerning  the  most  practicable  means  of  promoting 
commerce  with  the  United  States;  (2)  to  confer  with  the  several  Gov- 
ernments as  to  the  advisability  of  holding  an  international  American 
conference,  and  obtain  their  views  as  to  what  topics  should  be  dis- 
cussed at  such  a  gathering;  and  (3)  to  initiate  reciprocity  treaties  simi- 
lar to  those  already  arranged  with  Mexico  and  Sjiain,  with  such  of  the 
American  Republics  as  desired  to  enter  into  negotiations  for  that 
purpose. 


RECIPROCITY   AND    COMMERCIAL   TREATIES. 


Tlio  cominissioi)  retunicd  to  Wnsliingtoii  and  made  its  rc|)ort  (Iloitso 
Ex.  1>')C.  No.  U-'O,  i'orty-ei;;lith  (J()ii,i^ress,  second  session,  and  Jlouse  Ex. 
Doc.  No.  oO,  Forty  .lint h  Oon{i:ress,  lirst  session).  VVitii  a  s'ligle  excep- 
tion, tlie  (lovernnients  visited  ( xitressed  not  oidy  a  willingness,  hnt  n 
desire  to  enter  into  recipnx^al  arrangements  witli  the  United  States, 
an<l  in  several  cases  a  deUnite  understanding  was  reached  and  proto- 
cols exchanged. 

The  commission  recommended  that  an  international  conference  be 
held  in  Washington,  to  which  all  of  the  Uepublics  visited  had  consented 
to  send  delegates,  and  a  list  of  topics  for  consideration  was  submitted. 
A  bill  was  passed  by  Congress  to  carry  out  thao  recommendation,  and 
on  the  20th  of  May,  188S,  became  a  law  without  the  approval  of  the 
President.  The  conference  met  at  Washington  in  October,  188*.),  all  of 
the  independent  American  nations  being  represented  excex)t  Santo 
Domingo. 

RECIPROCITY   TREATIES   RECOMMENDED. 

Among  other  topics  announced  for  discussion  was  "Measures  toward 
the  formation  of  an  American  Customs  ITuioii,  under  which  the  trad<^ 
of  American  nations  with  each  other  shall,  so  far  as  i)ossible  and 
profitable,  be  promoted."  This  was  refeiTe<l  to  a  committee,  which, 
aft(!r  due  cousiderivtion,  reported  that  the  systems  of  taxation  and  tiie 
condition  of  the  public  revenues  of  the  Latiu-Anieriean  Kepublics 
made  such  a  customs  union  as  had  been  proposed,  that  is,  a  free  inter- 
change of  merchandise,  impracticable;  but  re(!omnu'iided  the  negotia- 
tion of  commercial  treaties  embracing  mutual  tariff  concessions,  so  far 
as  could  be  dcme  without  impairing  the  revenues  necessary  to  sustain 
their  several  Governments. 

On  the  lOth  of  June,  1890,  Mr.  Blaine,  Secretary  of  State,  han<led 
this  report  and  recommendation  to  the  President  with  a  letter,  in  which 
he  said: 

Fifteen  of  the  Bovonteen  Ropnlilics  with  whioh  wo  have  hoen  in  oonfercnno  have 
indicated,  hy  the  votes  of  their  rojireseiitiitives  in  tlio  Intornatioiiiil  American  (Jon- 
fereuce,  and  hy  otluir  nietliods  wliich  it.  in  nut  neeessary  to  (h'liuo,  tlieir  desire  to 
enter  npon  recii)rocal  conimeicial  relations  witli  the  United  States;  the  reniaininj^ 
two  exi)re8s  equal  willingness,  could  they  be  assured  that  their  advances  would  he 
favorably  considered. 

The  last  clause  of  this  paragraph  refers  to  Chile  and  the  Argentine 
Kepublic,  whose  chief  export  is  wool.  They  would  enter  into  recii)rocity 
treaties  with  the  United  States  only  upon  the  condition  that  wools  of 
the  coarser  grades  be  admitted  free  into  the  United  States,  or  at  a  ratio 
of  duty  considerably  below  the  then  existing  tariff  on  that  article. 

MR.  BLAINE'S  RECOMMENDATIONS. 

"  To  escape  the  delay  and  uncertainty  of  treaties,"  Mr.  Blaine  sug- 
gested "an  amendment  to  the  pending  tariff  bill  authorizing  the  Presi- 
dent to  declare  the  ports  of  the  United  States  free  to  all  the  products 
of  any  nation  of  the  American  hemisphere  upon  which  no  exi)ort 
duties  are  imposed,  whenever,  and  so  long  as,  such  nations  shall  admit 
to  its  ports  free  of  all  national,  i)rovincial  (State),  municipal,  and  other 
taxes,  our  flour,  corn  meal,  and  other  breadstufls,  preserved  meats, 
fish,  A^egetables,  and  fruits,  cotton-seed  oil,  rice,  and  other  provisions, 
including  all  articles  of  food,  lumber,  furniture,  and  other  articles  of 
wood,  agricultural  impleuicuts  and  machinery,  mining  and  mechanical 
machinery,  structural  steel  and  iron,  steel  rails,  locomotives,  railway 
cars  and  supplies,  street  cars,  and  refined  petroleum. 


8 


RECIPROCITY   AND   COMMKRCIAT.   TREATIES. 


,  "I  inoiition  tliese  paiticnljir  articloa  bocanso  tliey  have  been  most 
frequently  referred  to  as  those  with  wlii(  li  a  Valuable  exchange  could 
be  readily  allectcd.  The  list  could  no  doubt  be  profitably  eidarj?ed  by 
a  careful  iuvesti;?ation  of  the  needs  and  advantages  of  both  the  home 
aud  foreign  markets. 

"The  opinion  was  general  among  the  foreign  delegates  that  the  legis- 
lation herein  referred  to  would  lead  to  the  opening  of  new  and  profital>le 
markets  for  the  products  of  which  we  have  so  largo  a  suri)lus,  and  thus 
invigorate  every  branch  of  agricultural  and  mechanical  industry." 

In  conclusion  the  Secretary  of  State  observed:  "Of  course  the 
exchanges  involved  iii  these  projjositions  would  be  rendered  impossible 
if  Congress,  in  its  wisdom,  should  repeal  the  duty  on  sugar  by  direct 
legislation,  instead  of  allowing  the  same  object  to  be  attained  by  the 
reciprocal  arrangements  suggested." 


THE  MESSAGE   OF  PRESIDENT  HARRISON. 

This  letter  was  forwarded  to  Congress  by  the  President,  with  the 
following  message: 

To  the  Senate  and  House  of  Jiejn'esentaiivea : 

1  traiiHinit  lierowitL,  for  yonr  information,  a  Inttor  from  the  Secretary  of  State, 
iiiclosinfij  a  rcjjort  of  tlic  International  American  Conference,  wliicli  recommends  that 
reciprocal  comnicicial  treaties  bo  entered  intc  between  the  United  States  and  the 
several  other  Republics  of  this  hemisphere. 

It  has  been  so  olten  and  so  persistently  stated  that  our  tariff  laws  offered  an  instir- 
monntal)le  barrier.to  a  large  exchanj^o  of  products  witli  tlie  Latiu-Amciican  nations 
that  I  deem  it  proper  to  call  e8])ecial  attention  to  tlie  I'act  that  more  than  37  per  cent 
of  the  products  of  those  nations  sent  to  our  ports  arc  now  admitted  I'ree.  If  sni;ar 
is  placed  upon  the  iree  list,  practically  every  im])ortant  article  exported  from  those 
stales  will  be  given  untaxed  access  to  our  markets,  except  wool.  The  real  dilliculty 
in  the  way  of  negotiating  reciprocity  treaties  is  tliat  we  have  given  freely  so  much 
that  would  have  had  value  in  the  mutual  concessions  wliich  such  treaties  imj)ly.  I 
can  not  doubt,  however,  that  the  present  advantages  which  the  products  of  these 
near  and  friendly  states  enjoy  in  our  markets — though  they  are  not  by  law  excdu- 
sive — will,  with  other  considerations,  favorably  dispose  them  to  adopt  such  meas- 
nres,  by  treaty  or  otherwise,  as  will  tend  to  equalize  and  greatly  enlarge  our  mutual 
exchanges. 

It  will  certainly  be  tinie  enough  for  us  to  consider  whether  we  must  cheapen  the 
cost  ef  production  by  cheapening  labor,  in  order  to  gain  access  to  the  South  Ameri- 
can markets,  when  we  have  fairly  tried  the  effect  of  t^stablishod  and  reliable  steam 
communication  and  of  covenient  methods  of  money  exchanges.  There  can  be  no 
doubt,  I  think,  tliat  with  these  fjjcilities  well  established  and  with  a  rebate  of 
duties  upon  imjiorted  raw  materials  used  iu  the  manufacture  of  ^joods  for  export, 
our  mercliants  will  be  able  to  compete  in  the  jiorts  of  the  Latin-American  nations 
with  those  of  any  other  country. 

If  after  the  Congress  sliall  have  acted  upon  pending  tariff  legislation  it  shall 
appear  that,  under  the  general  treaty-making  power  or  under  aiy  special  powers 
given  by  law,  our  trade  with  the  States  represented  in  the  conference  can  be 
enlarged  upon  a  basis  of  mutual  advantage,  it  will  be  promptly  done. 

Brnj.  Haiuuson. 

Executive  Mansion,  June  ID,  1890. 

THE  RECIPROCITY  SECTION  IN  THE  ACT  OF  1890. 

In  response  to  these  recommendations  the  Fifty-first  Congress 
embodied  in  the  tariff  act  of  1890  a  provision  familiarly  known  as  the 
reciprocity  section,  which  reads  as  follows: 

Th.at  with  a  view  to  secure  reciprocal  trade  with  countries  producing  these  arti- 
cles; and  for  this  purpose,  on  and  after  the  first  day  of  July,  1892,  whenever,  and 
BO  often  as  the  President  shall  be  satisfied  that  the  Government  of  any  country  pro- 
ducing and  exporting  sugivrs,  molasses,  coffee,  tea,  hides,  I'aw  and  -ncured,  or  any 
of  such  articles,  imposes  duties  or  other  exactions  upon  the  agrii  ultural  or  oth  r 
products  of  the  United  States,  which  in  view  of  the  free  introduction  of  such  sugar, 


RKCII'ROCITY    AND    COMMERCIAL    TREATIES. 


niolnsRPs,  codVo,  tea, and  hitli  .•*  into  tlio  United  Statos  ho  may  drcin  to  ho  rpciprornlly 
iiiKMiual  and  nnjnst,  )i»^  sliall  ha.o  the  ])o\vt;r  and  it  Hliall  1k)  liis  ilnty  to  Hnspcnd,  l>y 
]iii)cliiniation  to  thacctl'oct,  tho  proviHionH  of  this  act  rclntinj,'  to  tho  t'lTo  introdnc- 
tion  of  sni'h  sugar,  niolnssfH,  cod'on,  toa,  and  liiih-s,  tho  prodnction  of  sncdi  rniiiitry, 
for  such  tinio  as  ho  Hhall  doom  just,  and  in  such  caso  and  during  siich  MiisiiciiHion 
duties  sliall  ho  loviod.  colloctod,  antl  ])aid  upon  sugar,  niolaRHos,  coll'oo,  tea,  anil  hidos 
tho  'iroduct  of  or  exported  from  such  dosignatod  country  as  followe,  namely  : 

All  sugars  not  ahovo  numhcr  thirteen  ])ut(di  standard  in  color  sliall  pay  duty  on 
their  jiolariscopic  test  es  fullows,  namely: 

All  sugars  not  ahovo  nuniher  thirteen  Dutch  standard  in  color,  all  tank  hottoms, 
sirujis  of  rane, juice  or  of  hoot  Juice,  nudada,  concentrated  nielada,  concreto  and  con- 
centrated moli'sses,  testing  by  11m  polarisc'ope  not  above  seventy-live  degrees,  seven- 
tenths  of  one  cent  i)"r  jiound;  and  for  (ucry  additional  degree  or  fraction  of  a.  degree 
shown  by  the  ])olaris(;oi)0  test,  two  hundredths  of  one  cent  jier  j)ound  additional. 

All  sugars  above  number  thirteen  Dutch  standard  in  color  ahall  bo  classified  by 
the  Dut<h  standard  of  color  and  i)ay  duty  us  follows,  namol.\  :  All  sugar  above 
nuuiber  thirteen  and  not  above  niimbor  sixteen  Dutch  standard  of  color,  one  and 
three-eighths  cents  per  ])ound. 

All  sugar  above  number  sixteen  and  not  above  nnmbor  twenty  Dutch  standard  of 
color,  one  and  iive-eighths  cents  per  pound. 

All  sugars  above  number  twenty  Dutch  standard  of  color,  two  cents  per  pound. 

Molasses  testing  abovi!  iifty-six  degrees,  four  cents  ])er  pound. 

f^ugar  drainings  and  sugar  swee])ings  sliall  bo  subject  to  duty  either  as  molasses  or 
sugar,  as  the  case  may  be,  according  to  jtolariseopic  test. 

On  cotl'eo,  three  cents  por  ])ouud. 

On  tea,  ten  cents  per  ])ound. 

Hides,  r.iw  or  uncured,  whether  dry,  salted,  or  pickled.  Angora  goatskins,  raw, 
without  the  wool,  unmanufactured,  asses'  skins,  raw  or  nnniauufacturcd,  and  skins, 
except  sheeiiskins,  with  the  wool  on,  one  and  one-half  cents  per  pound. 


NEGOTIATIONS   WITH   BRAZIL   I'OR   RECirROOITY. 


meas- 
mutual 


it  shall 
])owers 
can  be 


KISON. 


ese  arti- 
v^or,  and 
try  pro- 
, or  any 
r  oth  r 
sugar, 


Tmniodiately  after  the  passage  of  tin's  measure,  diplomatic  negotia- 
tions that  had  been  interriijjted  by  the  tariff  agitation  in  Congress  were 
resumed.  It  may  be  said  that  siuHi  negotiations,  with  spe(;ial  ])lenii)o- 
tentiaries  from  the  Emperor  of  15ra/i!,  had  been  commenced  as  early  as 
August,  1889,  and  that  upon  the  establishment  of  the  Kej)ul)lic  were 
immediately  renewed.  It  was  not  long,  therefore,  before  an  arrange- 
ment was  conclud3d  under  which  the  lirazilian  Government  authe''  ed 
the  admission  into  its  ports,  free  of  all  duties,  the  iiroducts  of  the  farms 
and  mines  of  the  United  States,  all  forms  of  machinery  and  laihvay 
supplies,  agricultural  implements,  labor-saving  machinery,  and  a  con- 
siderable number  of  other  articles;  and  the  achnission  of  a  long  list  of 
other  manufactured  articles,  including  wearing  apparel,  hardware,  iire- 
served  meats,  fruits  and  vegetables,  lard,  dair,>  ])roducts,  lumber,  jiir- 
nitiire,  wagons,  and  carriages,  at  a  rate  of  duty  25  per  cent  less  than 
that  imposed  upon  similar  articles  imported  from  other  countries. 

A  similar  arrangement  was  shortly  after  made  by  John  W.  Foster, 
representing  the  Secretary  of  State,  with  the  Governments  of  Spain, 
acting  for  Iter  American  colonies,  Cuba  and  Puerto  Kico,  with  the 
lleivablics  of  Santo  Domingo,  Gautemala,  Salvador,  Costa  Rica,  and 
Nicaragua,  and  with  the  British  colonies  of  Jamaica,  Trinidad,  Barba- 
does,  Guiana,  the  Leeward  Islands,  and  the  Windward  Islands. 
Arrangements  were  also  made  with  Germany  and  Austria,  under 
which,  in  consideration  for  the  free  admission  of  their  beet  sugar  into 
the  United  States,  the  agricultural  products  from  this  country  were 
admitted  into  German  and  Austrian  ])orts  at  largely  reduced  rates  of 
duty.  The  discrimination  in  favor  of  the  products  of  the  United  States 
amounted  to  30  per  cent  on  wheat,  rye,  hops,  flour,  and  all  other  mill 
products;  37 J  per  cent  on  oats;  .33 J  per  cent  on  game;  20  per  cent  on 
corn  and  lumber;  25  ])er  cent  on  ])ulse,  timber,  and  fresh  meat;  15  i)er 
cent  on  pork  and  butter,  and  corresponding  rates  upon  other  articles. 


10 


RECIPROCITY   AND   COMMERCIAL   TREATIES. 


ATTEMPT  TO  NEGOTIATE  AN  ARRANGEMENT  WITH  FRANCE. 

A  reciprocity  arrangement  v/jivS  also  neffotinted  Avitli  the  Government 
of  France  under  which  a  long"  list  of  oar  products  were  to  be  adniitte<i 
free  or  i\t  reduced  rates  of  duty  into  the  French  Kepublic  and  colonies 
in  exchange  for  the  free  admission  of  beet  sugar,  hides,  cotfee,  and 
other  French  products  into  the  United  States,  lint  there  was  a  great 
deal  of  trouble  and  delay  because  of  a  discrepancy  in  the  statistics,  and 
the  French  Chambers  declined  to  a[)i)rove  the  convention.  Accord- 
ing tj  +heir  figures,  they  surrendered  duties  upon  imports  to  the  value 
of  0,192,01)0  francs,  and  we  gave  in  exchange  duties  on  on^j  7,320,575 
francs,  although,  according  to  our  figures,  which  were  accepted  by  the 
French  minister  in  making  the  negotiation^,  there  was  very  little 
difierence. 

Mr.  Whitelaw  lleid,  who  was  then  our  minister  at  Paris,  offered  to 
com])romise  by  accepting  our  returns  as  to  imports  from  France  into  the 
United  States  and  1  rench  returns  as  to  imports  from  the  United  States 
into  France,  and  the  minister  of  commerce  was  willing  to  accept  this 
solution,  but  the  agrarian  element  in  the  Ohaiuber  of  Deputies  was  very 
suspicious,  and  debated  the  question  until  the  present  Administra- 
tion canic  into  power  in  the  United  States,  when  the  efforts  to  secure 
advantages  for  our  ])roda»'ts  in  the  French  markets  culminated  in  the 
passage  of  a  law  authorizing  the  application  of  the  minimum  tariff  of 
France  to  the  followingproductsand  merchandise  of  the  United  States: 
Canned  meats,  fruits  dried  or  pressed  with  the  exception  of  raisins, 
fresh  table  fruit,  dried  apples  and  pears,  hops,  barrel  staves,  paving 
blocks,  rough  common  wood,  squared  or  sawed. 

T^E  TARIFF  SYSTEM  OF  FRANOtS. 

The  schedule  of  aii;i«.les  included  iii  the  commercial  arrangen^enfc 
originally  agreed  u])on  was  very  much  more  extended  and  applied  to 
the  Kepublic  of  France  and  to  all  he;  colonies  aJike. 

The  tariff  system  of  France  consists  of  two  scales  of  rates — one 
called  the  general  tariff",  which  is  applicable  to  all  countries  in  com- 
mon; the  o(!ier,  called  the  minimrm  tariff",  which  is  only  applicable  to 
countries  which,  by  treaties  with  France,  are  entitled  to  tiie  benefit  of 
its  lower  rates.  The  difierence  between  the  two  rates  is  usually  25  per 
cent. 

The  tbllowing  is  a  list  of  the  articles  included  in  th.e  original  arrange- 
ment: Timber  in  the  rough  and  sawed  and  squared,  lumber,  staves  and 
other  cooi)erage  supplies,  clapboards,  hnnber  for  packing  boxes,  canned 
meats,  table  fruits  of  all  kinds,  cider  frrits  of  all  kinds,  grapes  lor 
wi!ies,  dried  apples,  pears,  and  peaches,  plums  and  other  dried  fruits, 
prunes  and  plumo,  wines. 

The  most  important  items  in  this  list  are  lumber  and  timber,  of 
which  we  send  about  two  and  a  half  million  dollars'  worth  annually  to 
France  and  her  colonies;  canned  meats,  of  Aviiich  our  exports  reach 
four  millions,  and  dried  fruits.  The  list  might  be  considerably  enlarged 
if,  in  the  negotiation  of  another  arrangement,  a  longer  list  of  the  prod- 
ucts of  France  and  her  colonies  might  be  taken  into  co:isiderat"'.n  as 
well  as  co.Tee,  sugar,  and  hides. 

An  earnest  effort  was  made  t-o  obtain  a  mitigation  of  the  present 
needless  ins]iection  of  American  jMirk  as  a  i)art  of  the  reciprocity 
arrangement,  but  nothing  definite  was  secured  further  than  an  assur- 
ance that  if  the  existing  systematic  and  scientific  inspection  i.i  the 
Unit-ed  Spates  was  continued  the  French  regulations  would  be  modified 
80  as  nut  to  obstruct  commexco. 


RECIPROCITY    AND    COMMERCIAL   TREATIES. 


11 


Siiice  that  tinio  France  and  Russia  have  entered  into  a  reciprocity 
treaty  under  which  the  duty  on  crude  petroleum  from  Jlussia  is  reduced 
to  i>  francs  per  KfO  kilograips;  on  refined,  9  francs  per  100  liters;  on 
lubricating  oils  and  other  products  of  p'^troleum,  9  francs  i)er  100  kilo- 
ragins. 

In  exchsvuge  for  this  Russia  made  a  very  liberal  reduciioji  in  her 
duties  upon  a  long  list  of  articles  exported  from  France.  There  was  a 
1.1  per  cent  reduction  upon  confectionery,  condiments  of  all  kinds,  pre- 
served fruits  and  vegetables,  a  10  per  cent  reduction  on  liquors  and 
brandies,  10  per  cent  upon  machinery,  "15  per  cent  on  agricultural 
implements  and  machinery,  120  per  cent  upon  knitted  goods,  from  10  to 
15  per  cent  on  all  forms  of  wearing  apparel,  and  similar  reductions  on 
many  other  articles. 

COLOMBIA. 

The  Republic  of  Colombia  was  the  mosu  reluctant  of  all  the  countries 

th  which  reciprocity  arrangements  were  attempted.  Shortly  after 
t.ie  approval  of  the  tariff  act  of  18U0  circulars  were  sent  to  the  rejire- 
sentatives  of  foreign  governments  at  Washington,  calling  their  attention 
to  section  3  and  inviting  correspondence  with  a  view  to  the  application 
of  the  principles  to  their  trade  with  the  United  States.  At  the  same 
time  the  minister  of  tlie  United  States  at  Bogota,  Mr.  John  T.  Abbott, 
was  directed  to  approach  the  minister  of  foreign  affairs  and  make  known 
to  hini  the  friendly  desire  of  the  Government  of  the  United  States 
res])ecting  commercial  intercourse  between  the  two  countries  and  the 
hope  that  there  might  be  a  convention  arranged  that  would  be  profita- 
ble to  both  upoj.  the  basis  of  that  legislation. 

No  notice  having  been  taken  of  these  suggestions,  Mr.  Blaine  ngain 
called  the  attention  of  Mr.  Hurtado,  the  Colombian  minister  at  Wash- 
ington, to  the  matter,  and  informed  him  that  "our  minister  at  Bogota 
reports  that  all  his  efforts  in  the  direction  indicated  have  been  without 
success,  and  there  is  no  present  proN])ect  of  an  agreement  on  the  sub- 
ject. It  is  deeply  regretted  by  the  President  that  his  invitation  to  the 
Gov  rnmcnt  of  Colombia  has  not  been  responded  to  in  the  same  con- 
ciliatory spirit." 

Hearing  nothing  from  this.  Secretary  Blaine,  under  date  of  January 
7, 1892,  notified  the  Colombian  minister  that  "unless  some  satisfactory 
commercial  arrangement  is  entered  upon  between  the  Government  of 
the  United  States  and  the  Gc  /ernment  cf  Colombia  on  or  before  the 
ir>vh  of  March,  1892,"  the  President  would  be  compelled  to  issue  a 
proclamation  rcimposing  duties  upon  sugar,  molasses,  coffee,  tea,  and 
hides  imported  from  Colombia  into  the  United  States. 

COLOMBIA  INVOKES  AN  OLD  TREATY. 

Mr.  Hnrtado  then  appealed  to  the  treaty  of  amity,  commerce,  and 
navigation  entered  into  in  1840,  under  which  he  claimed  tlie  commerce 
of  (Colombia  was  entitled  to  all  the  privileges  which  the  iJnited  States 
might  concede  to  other  nations,  and  "especially  to  all  favors  and 
grants  touching  import  duties  on  merchandise  introduced  into  the 
United  States  under  whatever  condition  the  concession  might  be  made." 
He  promised  that  the  President  of  Colon bia  "will  use  all  the  influence 
at  his  ('<,mmand  to  obtain  from  Congress  at  its  next  meeting  such  an 
extension  of  the  list  of  noudutiable  merchandise  as  wid  justify  any 
action  which  the  President  may  be  pleased  to  take  i)ostponing  the 
fiiispcnsion  of  the  free  entry"  of  (/olombian  coffee  and  hides  into  the 
Uniled  States. 

The  same  day  Mr.   Dlaine  re[)licd  that  the  Ooveriimeiit  of  the 


1 1  f  .■«s«-i*«}«:  #«f<v  "w  -  a 


12 


RECIPROCITY   AND    COMMERCIAL   TREATIES. 


W 


United  States  could  not  accept  the  vievj  of  Mr.  Hurtado  concerning 
the  privik^ges  of  Colombia  under  the  treaty  of  ISiii,  and  denied  t^at  it 
liad  any  bearing  u])on  the  case,  lie  renewed  his  request  for  a  detailed 
statement  of  the  (;hanges  in  the  ColoTnbian  tariff  which  the  President 
of  that  country  had  reconnnendod  in  order  that  the  President  of  the 
United  States  might  judge  whether  they  would  result  in  especial  benefit 
to  American  products. 

Mr.  JIurtado  simply  replied  that  he  would  forward  the  note  to  his 
Government  at  Bogota. 

Therefore,  in  accordance  with  the  notice  given  in  January,  President 
Harrison  issued  a  proclamati  .>n  on  tlie  15th  of  March  suspending  the 
Jree  admission  of  Colombian  products  into  the  United  States  and  reini- 
posiiig  the  old  duties  upon  sugar,  according  to  tests,  4  cents  per  gal- 
lon upon  molasses,  3  certs  per  pound  on  colfee,  and  1^  cents  per  pound 
upon  hides. 

The  Colond)ian  minister  continued  to  write  protests  at  intervals  until 
the  reciprocity  section  was  repealed  by  the  act  of  August  28, 1894. 

TIAITI. 

The  dutiable  provision  of  section  3  of  the  tariff  act  of  1800  was  also 
a])plied  to  Haiti,  the  Gov^ernment  of  that  Republic  having  indicated  no 
disposition  to  negotiate  an  arrangement  similar  to  that  made  with  the 
neighboring  Eepublics  and  colonies.  In  fact,  Haiti  was  absolutely 
indilierent,  and  made  no  response  whatever  to  the  advances  of  Mr. 
Blaine.  His  letters  on  the  subject  to  the  minister  of  Haiti  in  the 
United  States,  and  the  communications  of  the  United  States  minister 
to  the  Government  at  Port  au  Prince  were  acknowledged,  but  never 
rei)lied  to. 

Tiierefore,  on  the  15th  of  March,  1892,  President  Harrison  issued  a 
proclamation  suspending  the  free  admission  into  the  United  States  of 
tiie  products  of  Haiti,  and  reimposing  upon  hides,  sugar,  molasses, 
coffee,  and  other  articles  the  duties  provided  by  the  tariff  act. 

VENEZUELA. 

The  Government  of  Venezuela  showed  a  very  cordial  desire  to  engage 
in  a  reciprocity  arrangenrent  when  the  subject  was  lirst  proposed,  and 
the  minister  from  that  Kepublic  at  Washington  negotiated  with  the 
Department  of  State  the  terms  of  a  convention  which  was  agreed  ni)ou 
between  them,  and  forwarded  it  to  Caracas  for  the  approval  of  the 
Venezuelan  Government.  For  reasons  wliich  have  never  been  officially 
explained,  the  President  of  that  Kepublic  suddenly  lost  his  interest  in 
the  subject,  and  the  combined  efforts  of  the  Venezuelan  minister  in 
Washington  and  the  United  States  minister  at  Caracas  were  never 
able  to  revive  it.  He  did,  however,  under  pressure  from  the  United 
States,  transmit  the  i)apers  to  the  Congress  of  Venezuela,  which  author- 
ized the  appointment  of  Don  Vicente  Coranado,  minister  of  finance,  as 
a  special  connnissioner  to  continue  the  negotiations.  As  that  gentle- 
man manifested  no  desire  or  intention  to  do  so.  President  Harrison,  on 
the  15th  of  March,  1892,  under  the  authority  conferred  upon  him  by 
<he  tariff  act  of  1890,  suspended  the  free  admission  of  sugar,  molasses, 
coffee,  and  hides  from  Venezuela,  and  reimjiosed  upon  them  the  former 
duties. 

RECIPROCITY  WITH  MEXICO. 

The  limitations  of  the  reciprocity  section  of  the  tariff  act  of  1890 
made  it  impossible  to  negotiate  an  arrangement  with  Mexico,  but  shortly 
after  the  assembling  of  the  Fifty-i-,ocoini  Congress  the  Committee  ou 


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1 


3* 


RECIPROCITY   AND    COMMERCIAL   TREATIES. 


13 


ForeWn  Affairs  of  the  House  of  Eepresentatives  reported  a  resolution 
ori^'iiuilly  introduced  by  Mr.  Stewart,  of  Texas  (H.  Res.  32,  Fifty-second 
Congress,  fir  "t  session),  which  provided  "  that  the  Presidentof  the  United 
States  is  requested  to  invite  the  Government  of  the  Republic  of  Mexico 
to  designate  three  commissioners,  who  shall  meet  a  like  number  of  com- 
missioners to  be  designated  by  the  President  of  the  United  States,  whose 
duty  it  shall  be  to  negotiate  a  treaty  whereby  greater  reciprocity  in  the 
commercial  relations  between  the  United  States  and  the  Republic  of  Mex- 
ico shall  be  established;  and  whenever  it  shall  be  duly  certified  to  the 
President  of  the  United  States  that  the  Republic  of  Mexico  has  declared 
her  willingness  to  enter  into  such  a  treaty,  and  for  that  purpose  has 
a])pointed  the  commissioners  before  named,  he  shall  appoint  three  com- 
missioners, who  shall  have  authority  to  meet  those  who  have  been 
designated  by  the  Republic  of  JNlexico,  and  to  negotiate  with  them  such 
a  treaty;  and  the  commissiimers  appointed  on  behalf  of  the  United 
States  shall  report  to  the  President,  who  shall  lay  the  report  before 
Congress." 

This  resolution  was  accompanied  by  a  report  (Report  No.  1145,  Fifty- 
second  Congress,  first  session),  unanimously  adoi)ied  by  the  Committee 
on  Foreign  Affairs,  which  set  forth  with  great  ability  and  clearness  the 
advantages  of  the  policy  adopted  in  the  previous  Congress  in  promoting 
the  foreign  trada  of  the  United  States,  and  recommended  its  extension 
to  include  the  neighboring  Republic  of  Mexico.  It  was  argued  that 
every  rea.son  suggested  by  geographical  location,  similarity  of  institu- 
tions, and  community  of  commercial  interests  would  seem  to  justify  all 
reasonable  efforts  to  promote  close  trade  relations  with  our  sister 
Republic. 

THE  RESULT  OP  THE  EFFORTS  MADE  TO  EXTEIiD  TRADE. 

That  a  Government  can  do  much  to  increase  the  trade  of  its  people 
by  legislative  and  executive  acts  is  not  only  demonstrated  by  the  com- 
mercial history  of  P^ngland,  Germany,  and  France,  but  with  equal 
force  by  the  statistics  of  our  own  exports  to  the  Latin -American  coun- 
tries since  the  movement  to  seek  markets  in  their  direction  began.  In 
1885  the  exi)()rts  from  the  Uiiited  States  to  those  countries  amounted 
to  $03,000,000,  in  1891  to  $90,000,000,  in  1893  to  $103,000,000,  and  in 
1895  to  $88,000,000. 

The  following  table  shows  the  exports  from  the  United  States  to  the 
Republics  and  colonies  of  Central  and  South  America  during  those 
years : 


Country. 


ArKentiue  Eepublio 

Brazil 

UritiHli  coloiiios 

<'<'iit nil  Aiiioricu 

Chile 

( 'oliiiubia 

Culm 

1  Mitch  coli)nio8 

yrni.cli  cuIuuIhs 

nuiti  1111(1  Santo  Doniliijio 

Mexico 

Peru 

I'uorto  Rico 

Fnigimy 

Veim7,u«la 

Other  sountrica 

tot^kl 


1885. 


$4, 
7, 
9, 
2, 
2, 
5. 
9, 

I, 

4, 
7, 

1, 
1, 
3, 
1. 


725,  640 
317, 293 
221,281 
702,531 
2".',  007 
583, 309 
006  160 
005,  860 
529, 817 
204, 008 
337,  023 
742. 105 
5B!1,  205 
682,  443 
043, 609 
014,170 


63, 007,  Vil 


1891. 


$2,  820, 

14,  120, 

12, 100, 

6,813, 

3, 145, 

3, 182. 

12,  224, 

1, 028, 

2,061, 

6,  «K3, 

14,  90!1, 

1,  ;l!»9, 

2, 1.1.1, 

1,  070, 

4,  784, 

1, 646, 


035 
246 
719 
316 
625 
644 
8«8 
056 
903 
5r,4 
620 
991 
234 
575 
958 
or;'. 


80,413,610 


1893. 


$4,  979, 696 
1.,  388, 124 
11,412,805 

5,  522,  5H« 
2,  980, 831 
3, 1.55,  777 

'!4, 1.57,008 
1,126,062 

1,  932,  308 

6,  420,  362 
19,  508,  034 

636,  721 

2,  510,  007 
960,606 

4,  ;',07,  60  » 
1,446,597 


103, 413,  OW 


1895. 


$4, 456, 163 

15,16,5,079 

10,  094,  306 

fi,  620,  396 

2,794,099 

2,  596,  302 

12,  807,  HRl 

963, 014 

1,675.931 

6,  .543,  868 

15, 005,  906 

630,  385 

1, 833,  544 

1, 262, 001 

3,740,464 

1,  241,  445 

K,»49,684 


m. 

RESULTS  OF  BEOIPROOITT. 


•'H 


Wliile  the  beneficent  results  of  the  few  reciprocity  arrangements  that 
were  consummated  under  the  authority  of  the  act  of  1890  are  clearly 
apparent  and  acknowledged  by  those  who  are  most  deeply  interested 
and  have  the  advantage  of  practical  experience,  it  is  to  be  regretted 
that  the  brief  period  that  they  were  in  force,  extending  over  a  period 
in  most  cases  of  less  than  three  years,  was  not  sufficient  to  fairly  test 
their  efficacy,  especially  as  the  commercial  and  financial  conditions  of 
several  of  the  countries  and  colonies  involved  were  disturbed  by  unusual 
causes  and  calamities. 

It  is  gratifying  to  know  that  wherever  commercial  conditions  per- 
mitted there  was  a  substantial  gain  in  the  exports  of  the  United  States. 
In  some  cases  it  was  phenomenal,  and  could  be  traced  directly  to  the 
advantages  secured  by  the  reciprocity  arrangements  and  to  the  inva- 
sion of  the  markets  by  our  merchants  and  manufacturers. 

In  o'^jher  countries  where  financial  depression  or  civil  war  prevailed, 
a  comparison  of  commercial  statistics  will  show  that  the  export  trade 
of  the  United  States  suffered  less  than  that  of  any  other  nation,  and  it 
was  a  decided  vindication  of  the  reciprocity  policy  that  we  were  able 
to  hold  our  own.  The  testimony  of  all  the  commercial  organizations  of 
Europe,  all  the  commercial  publications,  all  the  diplomatic  and  consu- 
lar representatives  of  the  European  countries  in  Central  and  South 
America  and  the  West  Indies,  justified  our  own  belief  in  the  impor- 
tance of  the  commercial  advantages  gained  for  the  United  States  and 
the  peril  which  threatened  their  own  interests.  The  debates  in  the 
British  Parliament  and  the  Gernum  Reichstag  olfered  substantial  tes- 
timony to  the  value  of  the  reciprocity  policy  while  it  was  in  force,  and 
those  that  have  followed  its  repeal  have  more  than  confirmed  it. 


OUR  FOEEIGN  TRADE  UNDER  RECIPROCITY. 


In  1892  the  export  trade  of  the  United  States  reached  high-water 
mark.  The  total  was  $1,030,278,148,  and  exceeded  by  $100,000,000 
that  of  any  previous  year.  In  1893  there  Avas  a  decided  falling  off', 
and  the  total  Iropped  to  $817,G(>r),l94.  Our  exports  of  domestic  mer- 
chandise to  Eui  o\ye  alone  fell  off"  $189,000,000 ;  to  A  ustralasiathe  decrease 
was  $4,300,000,  and  to  Asia  $3,307,000.  The  decrease  in  our  shipments 
to  South  America  was  only  $483,000,  and  the  increase  to  the  countries 
with  which  we  had  reciprocity  arrangements  was  $3,500,515  from  the 
total  in  1892,  and  $1(5,440,721  from  the  total  in  1891,  before  they  were 
ratified. 

The  only  countries  in  the  entire  list  of  nations  and  colonies  with 
which  we  have  commerce  that  showed  increased  exi)ort8  from  the  United 
14 


RECIPROCITY    AND    COMMERCIAL   TREATIES. 


15 


'ments  that 
are  clearly 
^  interested 
B  regretted 
er  a  period 
>  fairly  test 
)nditions  of 
by  uuusual 

litions  per- 
ited  States, 
jctly  to  the 
o  the  inva- 

prevailed, 
[port  trade 
tioii,  audit 
B  were  able 
nizatiousof 
and  consu- 
and  South 
the  impor- 
Sfcates  and 
ites  in  the 
tantial  tes- 

force,  and 
d  it. 


liffh-water 
00,000,000 
falling  off, 
H'stic  mer- 
le decrease 
sliipments 

countries 
i  from  the 

they  were 

)nies  with 
;he  United 


States  in  1893  were  those  with  which  we  had  reciprocity  arrangements, 
and  the  Azores  Islands,  Gibraltar,  Greece,  Portugal,  Roumania,  Spain, 
Turkey,  Asiatic  Russia,  the  Philippine  Islands,  Africa,  and  the  Domin- 
ion of  Canada. 

And  this  in  the  face  of  the  fact  that  a  financial  and  commercial 
depression  prevailed  with  uni>recedented  severity  through  all  the  Latin- 
American  countries  and  the  West  India  Islands.  In  Nicaragua,  Hon- 
duras, and  Brazil  there  were  revolutionary  insurrections  which  dis- 
turbed the  peace,  intei-fered  with  conunerce,  paralyzed  the  industries, 
impaired  the  purchasing  power  of  the  people,  and  destroj'ed  confidence 
in  both  ])ublic  and  private  ci-edit.  I'ublic  and  private  enterprises  were 
interrupted  and  many  of  them  were  abandoned,  foreign  capital  was 
withdrawn,  banks,  mercantile  houses,  and  manufacturers  failed  or  went 
into  li(jui(lation;  the  demand  for  machniery,  implements,  railway  snp- 
l)lies,  raw  imiterials,  and  articles  of  luxury  ceased;  thousands  of  work- 
ingnien  were  thrown  out  of  employment  and  imi)ressed  into  the  armies, 
while  the  merchants  found  themselves  with  large  stocks  of  imported 
goods  on  their  hands  and  no  customers. 

DEPllECIATION   OF  LOCAL   VALUES. 

Exchange  sympathized  with  existing  conditions.  The  milreis,  the 
monetary  standard  in  Brazil,  whose  nominal  value  is  54  cents  in  United 
States  gold,  was  quoted  at  from  48  to  50  cents  in  1890  when  the  reci- 
procity arrangements  were  negotiated.  At  the  commencement  of  1893 
it  was  as  low  as  22  cents,  and  continued  so  during  nearly  the  entire 
year.  As  a  result,  Brazilian  merchants  who  paid  for  their  goods  with 
the  local  money  at  par  were  obliged  to  sell  them  for  double  their  forniv^r 
value.  There  was  no  corresponding  increase  in  the  price  of  native  prod- 
ucts, and  all  ibreign  products  had  to  be  paid  for  in  gold.  When  the 
reciprocity  arrangement  with  Brazil  was  negotiated  2h  milreis  would 
buy  a  gold  dollar.  In  1893  it  required  4,  and  often  5.  For  several 
months  the  foreign  trade  of  the  country  was  almost  entirely  suspended, 
and  importations  of  merchaudise  limited  to  actual  necessity.  The 
receipts  of  the  Government  for  customs  were  42  per  cent  less  than  they 
were  the  previous  year.  But  the  trade  with  the  United  States  suffered 
less  than  that  of  any  other  country,  and  a  comparison  of  our  exports 
during  that  depressed  period  with  those  from  Great  Britain,  France, 
and  Germany  furnishes  cause  for  gratification. 

The  general  tendency  of  our  trade  has  since  been  favorable.  The 
iuq)etus  gained  during  the  time  the  recii)rocity  agreement  was  in  force, 
and  the  efforts  that  were  made  at  that  time  by  our  merchants  and  man- 
ufacturers to  introduce  their  goods  into  Brazil,  still  show  results.  The 
exports  of  Great  Britain  to  Bi'azil  in  1891,  when  thu  reciprocity  arrangiv 
ments  were  negotiated,  were  $41,450,19");  in  1892  they  were  $39,551,025; 
in  1893  they  were  $38,807,1(55,  and  in  1894,  $37,029,930, 

In  1891  the  exports  of  France  to  Brazil  were  102,934,8f0  francs;  in 
1892  they  were  09,520,091  francs;  in  1893  they  were '^^2,084,912  francs, 
and  in  1894,  33,012,072  francs.     _,  ^_  ,„_  .  ,..,,,  ;  _   'L.„ 

PRIVATE  ENTERPRISE  SEARCHING   FOR  NEW  MARKETS. 

The  results  sought  by  and  expected  from  the  reciprocity  policy  could 
not,  however,  be  accomplished  without  the  enlistment  of  private  enter- 
prise. The  Government  obtained  advantages  for  the  merchants  and 
nuiuufacturers,  which  they  were  able  to  enjoy  at  their  pleasure,  but 
jnany  serious  obstacles  to  an  increase  of  trade  remained,  which  could 


16 


RECIPROCITY    AND    COMMERCIAL   TREATIES. 


i'  ) 


:i 


only  be  overcome  by  individual  zeal  and  intelligence.  By  the  arrange- 
ments negotiated  a  population  of  more  than  seventeen  millions  of 
peojde  were  enabled  to  purchase  tlie  products  of  tlie  United  States  at 
prices  very  largely  below  what  they  had  previously  been  compelled  to 
pay,  and  to  place  these  products  in  their  reach  was  the  province  of  the 
individual  rather  than  the  Government.  The  merchants  and  manufac- 
turers of  Europe,  by  a  long  and  careful  study  of  the  tastes  and  require- 
ments of  consumers  in  Central  and  South  America  and  the  West  Indies, 
by  the  establisluncnt  of  agencies,  the  granting  of  liberal  credits,  and 
intelligent  advertising,  have  obtained  control  of  the  trade,  and  can  not 
be  ex])ected  tt)  retire  from  a  largo  and  lucrative  market  without  resist- 
ance. That  resistance  was  seriously  felt  in  the  negotiation  of  the  reci- 
procity agreements  and  was  encountered  in  an  even  greater  degree 
by  those  who  attempted  to  take  advantage  of  the  opportunities  thus 
secured. 

But  the  fact  that  the  efibrts  of  the  Government  were  appreciated  and 
reenforced  by  those  for  whose  benefit  they  are  intended  was  fully  demon- 
strated by  the  i)ostal  statistics  and  the  passenger  lists  of  outgoing 
steamers,  and  are  confirmed  by  the  rejdies  of  numufacturers  and  exi)ort 
merchants  to  the  inquiries  of  the  committee.  Commercial  travelers  from 
the  United  States  were  to  be  found  in  every  city  of  this  hemisphere 
south  of  the  Gulf  of  Mexico  and  the  Rio  Grande,  and  the  mails  forwarded 
in  that  direction  were  laden  with  catalogues,  price  lists,  and  circulars 
intended  to  bring  to  the  attention  of  im])orting  merchants  the  superiority 
of  American  goods;  and  they  still  continue,  notwithstanding  the  repeal 
of  the  recii)rocity  arrangements,  but  under  far  less  favorable  circum- 
stances. 


EFFECT  OF  THE  REPEAL  OF  TUE  RECIPROCITY  POLICY. 

J.  A.  Dennis,  manufacturer's  export  agent,  New  York,  in  reply  to  the 
inquiries  of  the  committee,  says: 

Ry  correspondence,  distribution  of  samples,  and  1)y  salesmen  I  increased  my  sales 
about  100  per  cent  in  six  years,  mostly  in  tlie  American  countries  and  Japan.  The 
reciprocity  treaties  were  exceediuj^ly  favorable  to  the  export  trade  of  the  United 
States.     The  ell'ect  of  their  repeal  on  my  busiuesa  is  shown  by  the  following  figures: 

Increased  over  pievious  year :  Tcr  cent. 

1890 35 

1891 69 

1892 29 

1893 2 

Decreased  from  previous  year: 

1894 20 

1895 3 

I  am  strongly  in  favor  of  any  measure  that  will  renew  the  reciprocity  treaties. 


RECIPROCITY  SHOULD  NOT  BE  A  POLITICAL  POLICY. 

It  is  difficult  to  understand  why  a  patriotic  citizen  should  oppose, 
condenni,  or  counteract  any  measure  that  may  promote  the  prosperity 
of  his  comnumity.  There  will  always  be  honest  ditterences  of  oi)inion 
as  to  ways  and  means,  and  we  expect  to  be  confronted  with  obstacles 
that  foreign  rivals  may  place  in  our  way;  but  it  would  seem  that  any 
effort  or  measure  to  facilitate  the  placing  of  our  products  in  the  markets 
of  the  world  is  entitled  to  encouragement  instead  of  opposition;  and 
the  testimony  that  is  herewith  presented  from  the  commercial  and 
industrial  organizations  of  the  country,  from  manufacturers  and  mer- 
chants, from  stock  growers  and  representatives  of  the  agricultural 


RECIPROCITY   AND    COMMERCIAL   TREATIES. 


17 


arrange- 
llioTis  of 
states  at 
[)elled  to 
ce  of  the 
uanufac- 
require- 
it  Indies, 
lits,  aiul 
I  can  not 
ut  resist- 
tlie  reci- 
r  degree 
:ie8  thus 

ated  and 
y  demon- 
outgoing 
d  export 
lers  from 
inispliere 
irwarded 
circulars 
periority 
lie  repeal 
)  circum- 


ly  to  the 

I  my  sales 
pan.  The 
AG  United 
g  figures: 

PtT  cent. 

35 

69 

29 

2 

20 

3 

)aties. 


oppose, 
asperity 
o])inion 
>sta('les 
hat  any 
luirketa 
n;  and 
ial  and 
id  mer- 
ultural 


interests,  without  reference  to  political  opinions  or  party  association, 
is  ahnost  unanimous  in  urging  the  revival  of  the  reciprocity  policy 
wliicii  promised  so  much  improvement  in  our  exi)ort  ^rade. 

That  policy,  when  it  was  tirst  proi)osed,  was  (leclared  to  be  destruc- 
tive to  the  interests  of  the  manufacturers  and  agriculturists  of  this 
country,  yet,  after  an  experiment  of  about  three  years  while  it  was  in 
operation,  and  an  interval  of  less  than  two  years  since  its  repeal,  with 
one  voice  they  demand  its  revival  and  pernuinent  incorporation  in  the 
legislation  of  Congress. 

As  one  of  the  commercial  organizations  observes  in  reply  to  the  com- 
mittee's circular  of  inquiry: 

It  is  liard  to  coiiceivo  bow  anyone  interested  in  the  healthy  extension  of  the  cora- 
infiicial  advantiigcs  of  onr  coui<try,  or  in  the  prosperity  of  American  industry,  can 
answer  yonr  third  iiKjuiry  except  with  a  most  positive  appeal  that  all  ])arty  preju- 
«lieis  may  on  thia  yreat  (inestion  he  at  once  laicl  aside  and  make  way  for  the  commcr- 
ciall.v  and  industrially  sound  principle  of  reciprocity,  fairly  guarded  hy  the  special 
nticds  of  developing  industries,  in  all  future  tariff  legislation  j  and,  though  legislators 
1)0  more  apt  to  dictate  tlit;  generality  of  delegated  authority  in  the  premises,  no  tariff 
law  should  he  enacted,  whether  i'or  revenuts  only  or  for  revenue  with  incidental  pro- 
tection, tliat  did  not  carry  with  it  tho  plenary  authority  or  direction  to  the  Exeiiu- 
tive  to  negotiate  the  most  advantageous  reciprocity  possible  with  all  the  foreign 
nations  possible,  but  especially  with  the  nations  to  the  south  of  us. 

The  next  critic  saw  in  it  an  infringement  of  the  constitutional  rights 
of  the  Executive  and  a  surrender  of  the  prerogatives  of  the  legislative 
department  of  the  Government,  but  that  criticism  has  been  answered 
by  a  decision  of  the  Supreme  Court  of  the  United  States. 

CONSTITUTIONALITY  OF  RECIPROCITY  LEGISLATION. 

The  constitutionality  of  the  reciprocity  section  of  the  tariff  act  of 
18!»0  was  decided  by  the  Supreme  Court  of  the  United  States  in  the 
case  of  Fields  v.  Clark,  appealed  from  the  circuit  court  of  the  United 
States  for  the  northern  district  of  Illinois,  and  in  the  cases  of  Boyd  v. 
United  States,  and  Sternbacii  v.  The  United  States,  appealed  from  the 
circuit  court  of  tlie  United  States  +br  the  soutliern  district  of  New 
York.  The  decision  was  rendered  Tebruary  29,  1892,  and  appears  on 
page  049  et  see].,  vol.  143,  United  States  lieports,  October  term,  1891. 

The  plaintifts  in  error  contended  that  the  third  section  of  the  act  of 
October  1,  1890,  usually  known  as  the  reciprocity  section,  was  uncon- 
stitutional, on  the  ground  that  Congress  has  no  right  to  delegate  to  the 
Pjcsident  both  legislative  and  treaty  making  powers.  On  behalf  of 
the  United  States  it  was  argued  that  legislation  of  this  character  is 
sustained  by  early  decisions  by  the  United  States  Supreme  Court,  and 
by  the  practice  of  the  Government  for  nearly  a  century. 

The  court  held  tliat  the  contention  of  the  United  States  was  sustained 
by  ininierous  decisions  and  precedents  in  legislation,  beginning  as  far 
back  as  tlie  Administration  of  Washington,  and  continuing  as  late  as 
1884,  when,  in  execution  of  section  4228  of  the  Ilevised  Statutes,  Presi- 
dent Arthur  issued  a  proclamation  declaring  that  on  and  after  the  1st 
day  of  March,  1884,  so  long  as  the  i)ioducts  of  and  articles  proceeding 
irom  the  United  States,  imported  into  the  islands  of  Cuba  and  Puerto 
Kico,  should  be  exemi)t  from  discriminating  customs  duties,  any  such 
duties  on  the  products  of  and  articles  jiroceeding  ftom  Cuba  and  Puerto 
Kico  under  the  Spanish  flag  should  be  suspended  and  discontinued. 
(23  Stat.,  835.)  President  Cleveland,  by  proclamation  of  October  13, 
1880,  revoked  this  suspension,  upon  the  ground  that  higher  and  dis- 
criminating duties  continued  to  be  imposed  and  levied  in  the  ports 
H.  Kep.  2263 2 


18 


RECIPROCITY    AND    COMMERCIAL    TREATIES. 


luuued  upon  c(Mtain  i>ro(liu*e,  luamifactures,  or  moirchaiidise  imported 
into  tiiein  liom  the  United  States  and  from  foreign  countries  in  vessels 
of  the  United  States  than  were  inii)o.sed  and  levied  on  the  like  produce, 
manufactures,  oi'  merchandise  carried  to  those  ports  in  Spanish  vessels. 
(L*4  Stat.,  1028.) 

OPINION   OF   THE   SUPREME    COURT  OP   THE  UNITEU   STATES. 


"It  would  seem  to  be  unnecessary,"  reads  the  opinion  of  the  court, 
"to  make  further  reference  to  acts  of  Congress  to  show  thattlie  author- 
ity (jonferred  upon  the  President  by  the  third  section  of  the  act  of 
October  J,1(S90,  is  not  an  entirely  new  feature  in  the  legislation  of  Con- 
gress, but  has  the  sanction  of  many  precedents.  While  some  are 
stronger  than  others  in  their  application  to  the  case  before  us,  they  all 
siiow  that,  in  the  Judgment  of  the  legislative  branch  of  the  Govern- 
ment, it  is  often  desirable,  if  not  essential  for  the  protection  of  the 
interests  of  our  people  against  the  unfriendly  or  discrimiiuiting  regula- 
tions established  by  foreign  governments  in  the  interests  of  their  people, 
to  invest  the  President  with  large  discretion  in  matters  arising  out  of 
the  execution  of  statutes  relating  to  trade  and  commerce  with  other 
nations. 

"That  Congress  can  not  delegate  legislative  power  to  the  President 
is  a  principle  universally  recogni/ed  as  vital  to  the  integrity  and  main- 
tenance of  the  system  of  government  ordained  by  the  Constitution. 
The  act  of  October  1, 1890,  in  the  i)articular  under  consid«'ration,  is  not 
inconsistent  with  that  in'inciple.  It  does  not,  in  any  real  sense,  invest 
the  President  with  the  jmwer  of  legislation.  For  the  purpose  of  secur- 
ing reciprocal  trade  with  countries  producing  and  exjxu'ting  sugar, 
molasses,  tea,  coft'ee,  and  hides.  Congress  itself  determined  that  the  pro- 
visions of  the  act  of  October  1,  1800,  permitting  the  free  introduction 
of  such  articles,  should  be  suspended  as  to  any  country  producing  and 
exporting  them  that  imposed  exactions  and  duties  on  the  agricultural 
and  other  products  of  the  United  States  which  the  President  deemed — 
that  is,  which  he  found  to  be — reciprocally  unequal  and  unreasonable. 
Congress  itself  prescribed,  in  advance,  the  duties  to  be  levied,  collected, 
and  ])aid  on  sugar,  molasses,  cottee,  tea,  and  hides  produced  by  or 
exported  from  such  designated  country  wliile  the  suspension  lasted. 

"Ii^othing  involving  the  expediency  or  the  just  operation  of  such  leg- 
islation was  left  to  the  determination  of  the  President.  Tiie  words  'he 
may  deem,'  in  the  third  section,  of  course  imidied  that  the  President 
would  examine  the  commercial  regulations  of  other  countries  producing 
and  exporting  sugar,  molasses,  coU'ee,  tea,  and  hides  and  form  a  Judg- 
ment as  to  whether  they  were  recii)rocally  equal  and  reasonable,  or  the 
contrary,  in  their  etfecit  ui)on  American  products.  But  wheu  he  ascer- 
tained the  fact  that  duties  and  exactions  reciprocally  unequal  and  un- 
reasonable were  imposed  upon  the  agricultural  or  other  products  of 
the  United  States  by  a  country  producing  and  exj)orting  sugar,  molas- 
ses, coffee,  tea,  and  hides  it  became  his  duty  to  issue  a  proclamation 
declaring  the  suspension  as  to  that  country,  which  Congress  had  deter- 
mined should  occur.  He  had  no  discretion  in  the  premises,  except  in 
respect  to  the  duration  of  the  suspension  so  ordered.  But  that  related 
only  to  the  enforcement  of  the  policy  established  by  Congress.  As  the 
suspension  was  absolutely  required  when  tlie  President  ascertained  the 
existence  of  a  particular  fact,  it  can  not  be  said  that  in  asi^ertaining 
that  fact  and  in  issuing  his  proclamation  in  obedience  to  the  legislative 
will  he  exercised  the  function  of  making  laws. 


RECIPROCITY   AND   COMMERCIAL   TREATIES. 


19 


"Legislative  jmwer  was  exercised  when  Coiifjiess  declsired  that  the 
susjx'iision  should  take  effect  upon  a  named  contingency.  What  the 
President  was  retinired  to  do  was  simply  in  execution  of  the  act  of  Con- 
gress. It  was  not  tlie  making  of  law.  He  was  the  mere  agent  of  the 
law-making  department  to  ascertain  and  declare  the  event  upon  which 
its  expressed  will  was  to  take  effect.  It  was  a  part  of  the  law  itself  as 
it  left  the  hands  of  Congress  that  the^provisions,  full  and  complete  in 
themselves,  permitting  the  free  introduction  of  sugars,  molasses,  cotfee, 
tea,  and  hides  from  particular  countries  should  be  suspended  in  a  given 
contingency,  and  that  in  case  of  such  susi)ensions  certain  duties  should 
be  imi)Osed." 

"  'The  true  distinction,'  as  Judge  Ranney,  speaking  for  the  supreme 
court  of  Ohio,  has  well  said,  'is  between  the  delegation  of  jmwer  to 
nuike  the  law,  which  necessarily  involves  a  discretion  as  to  what  it  shall 
be,  and  conferring  authority  or  discretion  as  to  its  execution  to  be  exer- 
cised under  and  in  pursua  ce  of  the  law.  The  first  can  not  be  done; 
to  the  latter  no  valid  objection  can  be  made.'" 

THE  DISSENTING  OPINION. 

There  was  a  dissenting  opinion  from  Mr.  Chief  Justice  Fuller  and 
Mr.  Justice  Lamar,  which  was  rendered  by  the  latter,  although  both 
concurred  in  the.judgnient  of  the  court.  They  held  that  the  assertion 
that  no  part  of  the  legislative  power  can  be  delegated  by  Congress  to 
any  other  Department  of  the  Government,  executive  or  jmlicial,  "is  an 
axiom  in  constitutional  law,  and  is  universally  recognized  as  a  princi- 
ple essential  to  the  integrity  and  maintenance  of  the  system  of  govern- 
ment ordained  by  the  Constitution.  The  legislative  power  must  remain 
in  the  organ  where  it  is  lodged  by  that  instrument.  We  think  that  the 
section  in  (piestion  does  delegate  legislative  power  to  the  executive 
department,  and  also  commits  to  that  department  matters  belonging 
to  the  treaty-making  power,  in  violation  of  paragraph  li  of  the  second 
section  of  Article  II  of  the  Constitution." 


THE  ATTITUDES  OP  FOREIGN  GOVERNMENTS. 

After  Congress  had  given  the  President  authority  to  negotiate  com- 
mercial arrangements  under  section  3  of  the  tariff  act  of  181)0,  we 
were  told  that  foreign  nations  would  resent  the  attempt  of  this  Gov- 
ernment to  interfere  with  their  customs  laws,  lint  the  protests  and 
renonstrances  that  were  offered  by  Germany,  Austria,  Guatemala,  and 
other  countries  when  the  arrangements  were  repealed,  and  the  rel:alia- 
tory  measures  on  their  part  which  followed,  is  sufticient  to  demonstrate 
their  satisfaction  with  measures  that  added  to  their  prosperity  as  well 
as  to  ours.  The  verdict  that  will  be  found  in  the  answers  that  were 
received  to  the  in(iuiries  sent  out  by  this  couunittee  should  convince 
any  skeptic  that  the  reciprocity  policy  was  not  only  a  very  simi)lc  but 
a  very  sensible  thing. 

The  National  Live  Stock  Exchange,  in  formal  resolutions,  declares 
that  reciprocity  "is  always  favorable  to  the  promotion  of  the  foreign 
commerce  of  the  United  States,  and  from  our  standpoint  is  the  kind  of 
legislation  needed  to  increase  our  foreign  counnercial  relations,  and 
the  legislator  who  advocates  reciprocity  is  entitled  to  all  the  public 
honors  that  ca,n  be  bestowed  by  the  producers  throughout  the  United 
States." 


20 


RECIPROCITY   AND   COMMERCIAL   TREATIES. 


THE   ATTITUDE   OP   THE   IRON   AND   STEEL   INDUSTRY. 

The  attitude  ot"  the  iron  and  steel  industry  towjird  the  reciprocity 
policy  was  delined  to  the  comuiittee  by  Mr.  John  W.  Gates,  president 
of  the  Illinois  Steel  Company,  one  of  the  lar}»est  inanufactarinjif  corpora- 
tions in  the  woild,  which  has  $35,()()0,()00  of  capit- J  invested  in  25  fur- 
naces, 15  mills,  iron  mines,  coal  mines,  and  coke  ovens,  em])loys  10,282 
men,  and  has  an  annual  output  valued  at  from  twenty  to  thirty  million 
dollars.  Until  the  enactment  of  the  tariff  law  of  1800  this  company  sold 
its  ])roduct  exclusively  in  the  United  States,  but  under  the  reciprocity 
arran}»ements  sought  and  secured  a  foreign  market,  which  promised 
well,  but  as  soon  as  they  were  terminated  this  trade  "became  practically 
nothing." 

]\Ir.  dates  gave  some  striking  information  about  the  decline  in  prices 
during  the  last  six  years.  In  1890  the  product  of  his  company  was 
4o0,000  tons,  which  sold  for  $25,000,000.  In  1895  it  was  875,000  tons, 
and  sold  ior  $22,000,000. 

During  the  last  three  years,  upon  an  investment  of  $35,000,000  cap- 
ital, the  profits  of  the  company  were  only  $300,000. 

Mr.  Gates  subtnitted  a  letter  addressed  to  him  under  date  of  March 
18  by  the  New  York  manager  of  the  Consolidated  Wire  and  Steel  CJom- 
pany,  which  contains  some  pertinent  and  important  information.  The 
manager  wrote: 

RolVrring  to  the  question  of  advantttj^os  to  American  manufacturers  under  the 
reciprocity  treaties,  we  could  say  that  from  the  time  these  treaties  were  put  into  effect 
with  tlie  Latin-American  countries,  and  until  their  termination,  our  trade  in  barb 
wire  with  those  countries  increased  rai)idly  and  uniformly,  and  in  addition  to  the 
trade  in  barb  wire  we  were  able  for  the  lirst  time  in  the  history  of  our  company — 
which  covers  more  than  eighteen  years — to  introduce  to  a  certain  extent  plain  wire 
and  wire  nails,  and  everything  indicated  a  continued  expansion  of  the  voluiue  of  our 
business  had  the  condirions  remained  the  same.  As  soon,  however,  as  these  treaties 
were  abrogated  by  the  adoption  by  the  United  States  of  another  taritt"  law,  our  trade 
with  the  countries  which  it  attectod  became  practically  nothing. 

A  similar  condition  of  alfairs  is  true,  in  a  greater  or  less  degree,  with  all  other 
(iountries  with  which  the  United  States  had  similar  arrangements.  In  general,  we 
miiy  say  that  the  reciprocity  treaties  were  absolutely  and  unqualifiedly  of  gnjat 
advantage  to  American  manufacturers,  and  we  would  be  very  glad  indeed  to  see 
either  the  same  or  similar  ones  reinstated,  because  under  no  other  known  s(!t  of  con- 
ditions can  American  manufacturers  pay  American  prices  for  labor  and  material  and 
successfully  meet  the  competition  of  foreign  manufacturers. 


Y. 


Bciprocity 
president 
g corpora- 
ill  25  fur- 
ays  10,282 
ty  million 
ipany  sold 
eciprocity 
promised 
)ractically 

e  in  prices 
ipany  was 
5,000  tons, 

)0,000  cap- 

s  of  March 
Steel  (yom- 
tiou.    The 


rs  undor  the 
lit  into  ed'ect 
ratio  in  harb 
(lition  to  tlio 
r  company — 
it  plain  wire 
ohinio  of  our 
1)080  treaties 
iw,  our  trade 

ith  all  other 
jToiieral,  we 

lly  of  }^r(!at 
(lood  to  ace 
I  s(!t  of  cou- 

Luaturlal  and 


IV. 

PROTESTS  AGAIII^ST  THE  REPEAL  OF  RECI- 
PROCITY. 


The  repeal  of  the  reciprocity  section  and  the  restoration  of  the  duty 
on  sugar  did  not  result  from  any  popular  demand  or  commercial  neces- 
sity. There  was  no  petition,  memorial,  reipiest,  or  suggestion,  formal 
or  informal,  from  any  commercial  or  industrial  association,  or  company 
or  individual  demanding  either.  It  was  simply  a  legislative  necessity 
in  order  to  accomplish  "tari ft' reform." 

PROTESTS  FROM  GERMANY. 

Formal  protests  were  received  from  Gernuiny,  Guatemala,  and  other 
countries,  but  no  attention  was  paid  to  them. 

In  July,  1894,  while  the  bill  was  pending  in  the  Senate,  the  German 
ambassador  at  Washington,  under  instructions  from  his  Goveri.ment, 
iiled  the  following  protest  with  the  Secretary  of  State,  which  was  abso- 
lutely ignored : 

Imperial  German  Fmijassy, 

}f'aahington,  Juhj  16,  1894. 

With  regard  to  the  levying  of  an  identical  ad  valorem  dnty  of  40  per  cent  on  sugar 
from  all  countries,  with  the  addition  of  one-tenth  of  a  cent  per  pound  on  sugar  above 
No.  16,  Dutch  standard,  the  (Jerman  Govcrnimnt  will  refrain  from  making  any  obser- 
vations, although  German  sugar,  since  it  is  of  better  quality  than  the  inferior  grades 
of  sugar  from  the  competing  countries,  is  thereby  placed  at  a  disadvantage,  as  com- 
pared with  those  inferior  grades.  The  German  Government  must,  however,  regard 
the  discrimination  against  German  goods  by  levying  a  duty  thereon  of  one-tenth  of 
a  cent  additional  per  pound  as  an  injury  to  the  (Jerman  sugar  trade  which  can  not 
be  reconciled  with  the  treaty  stipulations  now  in  force  between  Germany  and  the 
United  Stiites.  The  payment  of  a  bounty  is  a  purely  domestic  niatter,  and  is  not  to 
be  considered  in  connection  with  the  establishment  of  duties  between  States  which, 
like  Germany  and  the  United  States,  sustain  the  relation  of  most-favored  nations 
toward  each  other.  The  United  States  might,  for  instance,  with  the  same  roiison 
assert  that  German  manufacturers  in  any  ])articular  branch  of  industry  paid  lower 
taxes  than  elsewhere,  and  then,  in  order  to  bring  about  a  so-called  equalization,  levy 
a  discriminating  duty  on  the  German  product  .concerned  on  its  importation  into  an 
American  port.  It  is  quite  evident  that  such  a  vi«w  of  the  case  would  render  the 
most-iavored-nation  clause  altogether  illusory. 

While  the  Imperial  Government  can  not  thns  do  otherwise  than  regard  the  addi- 
tion of  one-tenth  of  a  cent  per  pound  as  being  at  variance  with  the  treaty,  the 
German  sugar  producers  declare,  on  the  basis  of  accurate  computations  made  by 
them,  that  this  addition  would  in  fact  drive  out  German  productions  from  the  Amer- 
ican market.  The  addition,  moreover,  falls  more  heavily  upon  the  sugar  industry 
of  Germany  than  it  does  upon  that  of  other  bounty-paying  countries,  since  the  Ger- 
man bounty,  which  in  the  year  1897  is  to  be  discontinued  entirely,  is  by  no  means  as 
high  as  those  of  Austria  and  France,  and  does  not  even  approximately  corjpensate 
the  exporter  for  the  loss  entailed  upon  him  by  the  additional  duty. 

The  excitement  which  prevails  in  German  agricultural  and  manufactu  ing  circles 
on  account  of  this  inequitable  treatment  of  a  German  production  is  the  more  vebe- 

91 


22 


RECIPRO('ITY    AND    COMMKRCIAL    TREATIES. 


ment  and  the  less  easily  resisted,  inaMiinieh  an  it  is  generally  believed  that  the  Uuited 
States,  iu  the  ajijreeniont  of  Aiignf^t  '■i-,  1^'Jl,  guaranteed  exemption  to  Gorniauy  from 
the  duty  on  sugar  in  return  for  tlie  concession  of  the  conventional  duties  on  Ameri- 
can agricultural  products  and  the  removal  of  the  restrictions  on  the  imp<irtatiou 
of  swine. 

However  fully  the  Imperial  Government  is  roiiviuced  that  the  passage  of  the  reso- 
lution fixing  tiiC  duty  on  sugar,  wliich  has  been  ailopted  hy  the  Senate,  is  not  to  bo 
considered  as  an  act  unfriendly  to  Germany,  yet  it  is  so  considered  in  many  quarters. 
The  Iini)erial  (tovernnient  is  consequently  at  present  unable  to  say  whether  it  will 
lie  ])ossible  for  it,  in  view  of  the  increasing  agitation  on  account  of  the  proposed 
measure,  to  restrain  the  interested  parties  from  <iemanding  retaliatory  action,  which 
the  Imi»eria!  Gov»irnuu  iit,  owing  to  the  friendliness  and  fairness  that  characterize 
its  intercourse  with  the  United  States,  desires  to  avoid. 

Saurma. 

SECOND  REMONSTRANCE  FROM  GERMANY. 

After  the  passage  of  the  tarift"  bill  containing  the  discrimination 
agi.inst  Gorman  sugar  the  ambassador  irom  that  lOmpire  filed  the  fol- 
lowing formal  protest  with  the  Secretary  of  State: 

I.MI'KJIIAL  GkRMAN   EmHASSY   AT   WASHINGTON, 

Washington,  AugiiHt  28,  1S94. 

Mr.  SWCUKTARY   OF   STATE  : 

I  have  the  honor  to  communicate  to  your  excelloncy  the  following,  in  pursuance 
of  instructions  received  from  His  Majesty  the  Gornuin  ICnipcror,  King  of  I'russia: 

In  the  iwt  which  took  effect  to-day,  entitled  "An  act  to  reduce  taxation,  to  j»ro- 
vido  rovcuiio  for  tli((  (iovci-niiieut,  and  for  other  purpo.scs,"' thc^re  apjtears  in  .Schei'.ule 
Vj,  182i,  the  iirovision  that  suyar  from  ciiuntrics  tliat  pay  an  export  bounty  is  liable 
to  an  adilitif)nal  duty  of  one-tenth  of  a  cent  per  ponnd. 

In  the  course  of  tiie  negotiations  which  took  place  in  tlie  Congress  of  the  United 
States  of  AiiitMica  in  conmction  with  the  tariff  question,  the  Impiiial  Government 
to(d\  the  liliirty  to  point  to  the  fact  that  such  a  mcjisure  could  not  bn  recoucilfd  with 
the  most-favored-uation  clause  which  governs  tlie  economic  relations  of  th<'  two 
countries,  but  that  it  was  rarlier  a  differentiation  whereby  x\w  ex])ortation  of  (Jer- 
man  sug:ir  to  the  Uisited  States  of  America  was  more  unfavorably  treattnl  than  that 
of  seviial  otluM-  Euro])eau  countiies. 

The  expeef  atiou  that  (as  might  have  been  antici|)ated  from  tin;  long-standing  rela- 
tions of  amity  between  tlie  two  nations)  these  considcrjitions  would  not  be  without 
intlueme  upon  the  decisions  of  the  h'gislative  bodies  of  the  United  States  has,  unfor- 
tunately, not  ))<ien  r(\alized. 

The  (lovernment  of  His  Majesty  the  Emperor  is  conseijuiuitly  once  more  compelled 
to  rejteat  that,  after  most  careful  consideration,  it  is  convinced  that  the  levying  of 
an  a(lditional  duty  on  (ierman  sugar  is  in  harmony  neither  with  existing  stipulations 
nor  with  tnose  tendencies  which  the  exchange,  of  notes  of  August  22,  18i)l,  called 
forth. 

The  granting  of  an  export  bounty  on  sugar  is  a  domestic  atl'air  of  Germany. 

An  iut(!nt  not  to  fulfill  its  treaty  stipulations,  based  upon  the  most-favored-nation 
clause,  can  not,  therefore,  be  inferred  from  this  by  any  other  country. 

It  is  needless  to  dwell  u])on  tlie  fact  th.at  the  view  which  has  been  manifested  by 
the  legislative  bodies  of  the  United  States  would  render  the  effects  of  tlu^  most- 
favore«l-nation  dause  illusory,  and  that  it  would  expose  the  contracting  parties 
to  the  adoptio!)  of  arbitiary  dutiis,  which  it  is  the  object  of  treaties  containing  a 
most- favored-nation  clause  to  prevent. 

The  Imjjerial  Gove  rnment  feeis  conscious  that  it  has  always  conscientiously  ful- 
filled the  duties  rendiTed  ineumlient  u)»on  it  by  the  most-favored-nation  clause,  and 
it  consequently  cleiius  itself  authorized  to  expect  similar  action  on  the  part  of  the 
United  States  of  America. 

The  Government  of  His  Majesty  th(>.  Emperor  is  consequently  compelled  to  protest 
against  the  discriminating  })rovi8ion8  of  the  act  of  August  28,  1804. 

I  avail  myself,  etc.,  Saurma. 

IMPORTANCE  OF  THE  GERMAN  AGREEMENT. 


In  some  respects  the  most  important  of  the  sever.al  commercial  agree- 
ments negotiated  under  the  authority  of  the  third  section  of  the  tariflf 
act  of  1 8fK)  was  that  with  the  German  Emi)ire.  It  removed  the  embargo 
that  had  been  jdaced  upon  American  products  in  1880,  admitted  free  a 


RECIPROCITY    AND   COMMERCIAL   TRKATIK8. 


23 


nninbor  of  apicnltural  ])rodn(!ts  and  many  more  at  a  {^routly  nMliu-ed 
rate  of  duty.  For  t\vt'lv<i  years  the  (Jovermnent  of  the  United  Sliitfs 
had  l)een  tiyinfj  to  aceonipli.sh  this  by  dii>loniatic  nejiotiations;  hut  it 
had  always  failed  until  tlu'  adoption  of  the  reciproeity  policy  enal)le<l 
the  Secretaiy  of  State  to  otter  the  (leriuans  aeonipensation  whiiih  they 
deemed  equivalent,  in  the  free  admission  of  their  beet-root  sujjar  to  the 
United  States. 

The  arrangement  was  not  sought  by  th'im,  but  by  us,  and  they 
responded  with  yreat  reluctanee,  because  of  the  rai)id  increase  of  the 
af^iarian  movement  in  Gernuiny,  which  denumded  high  i)rotective duties 
upon  all  agricultural  imports. 

In  the  face  of  these  facts  and  the  fornuil  protest  that  was  entered  by 
the  German  ambassador  the  Fifty-third  Congress  proceeded  to  ignore 
the  treaty  stipulations  and  the  commercial  interests  of  the  United 
States  without  reflection  and  with  no  motive  except  to  rei)eal  the  legis- 
lation of  the  Fifty  lirst  Congiess.  The  committee  and  the  Senate  were 
warned  that  the  commercial  agreements  v  hich  had  been  entered  into 
under  the  act  of  1800  were  solemn  compacts  between  this  and  friendly 
nations  which  should  not  be  carelessly  set  aside,  and  could  not  l)e  ter- 
minated in  tlie  w^ay  ])ropose(l  without  national  dishonor.  They  were 
rennnded  that  tlie  (Jlovernment  might  i)r()perly  ask  i)ermisHion  to  with- 
draw from  the  compacts,  and  be  released  from  its  (►bligations  according 
to  the  custom  of  civilized  nations.  Such  a  metiiod  would  be  a  serious 
blow  to  the  commerce  they  had  done  so  much  to  promote  and  encour- 
age, but  would  preserve  the  honor  of  the  nation.  I>ut  in  their  impet- 
uosity the  advocates  of  tarill"  reform  were  deaf  to  reason  and  remou- 
strjince. 

RETALIATION  BY  GERMANY. 

Such  an  oifense  as  was  comnutted  by  the  passage  of  the  tariff 
act  of  1894,  if  committed  by  any  individual  or  a  corporation,  would  be 
foUowed  by  a  suit  for  damages,  but  Avlien  committed  by  one  nation 
against  another,  the  usual  recourse  is  a  declaration  of  war  or  commer- 
cial retaliation.  The  Government  of  Germany  adopted  the  latter  alter- 
native, and  proceeded  to  inaugurate  a  commercial  warfare  against  the 
United  States  which  has  demoralized  our  commerce  with  that  country 
and  been  a  serious  blow  to  tlie  ex])ort  trade. 

Nor  is  it  confined  to  tlie  German  Empire.  Sympathetic  rotaliaticm 
has  followed  from  Austria,  Belgium,  Holland,  and  Denmark,  unti'  now 
our  agricultural  products  are  practically  shut  out  of  the  markets  of 
northern  Europe,  and  the  result  is  felt  by  every  man  who  raises  a 
bushel  of  wheat  or  corn,  or  who  sends  a  hog  or  steer  to  the  stock  yards. 
Thus  our  exports  of  corn  to  Europe  dropped  from  .'>2,()U0,0()0  bushels 
in  1894  to  23,000,000  bushels  in  1895.  Our  exports  of  wheat  dropped 
from  84,000,000  bushels  to  71,000,000.  There  was  a  loss  in  the  exports 
of  flour  of  1,700,000  barrels,  and  other  interests  suffered  accordingly. 


PRESIDENT   CLEVELAND   ON   GERMAN   RETALIATION. 

Many  serious  embargoes  and  restrictions  have  been  placed  by  Ger- 
many upon  American  products,  and  even  our  insurance  companies 
were  proliibited  from  doing  business  in  the  German  Empire  as  a  part 
of  the  retaliation  policy. 

So  serious  was  the  result  and  so  great  Las  been  the  suffering  of 
American  commerce  that  the  President  of  the  United  States,  in  his 
annual  message  to  Congress,  called  attention  to  the  matter  and  dis- 


24 


RECIPROCITY    AND    COMMERCIAL    TREATIES. 


cusses  the  propriety  of  inaugurating  a  movenieiit  ot  counter  retalia- 
tion, but  he  forgets  to  exphiin  that  our  commercial  relations  with  Ger- 
many were  perfectly  satisfactory,  liopeful,  and  profitable  to  the  people 
of  the  United  States  until  the  Fifty-third  Congress  torbitrarily  revolved 
the  reciprocity  arrangement  which  exchanged  our  agricultural  products 
for  her  beet- root  sugar;  that  this  action  was  taken  in  viohi^ion  of  the 
usages  of  international  etiquette,  and  imposed  upon  the  largest  and 
most  impoi'tant  article  of  export  from  Gei.uany  a  discriminating  duty 
that  benefited  nobody  except  the  sugar  trust,  which  at  that  very  hour 
the  Attorney-General  of  the  United  States  was  prosecuting  in  the 
courts  of  Philadelphia  as  a  menace  to  the  welfare  of  our  people. 

Mr.  Cleveland  says  in  his  message  that  "in  our  dealings  with  other 
nation"  we  ought  to  be  openhanded  and  8crupulousI>  fair.  This  should 
be  our  policy  as  a  producing  nation;"  and  he  adds^  "and  it  plainly 
becomes  us  as  a  people,  who  love  generosity  and  the  moral  aspects  of 
national  good  faith  and  f*}ciprocal  forbearance." 

If  these  words  had  been  addressed  to  the  Fifty  third  Congi'ess  they 
would  have  been  more  appropriate,  and,  if  heeded  by  that  Congress, 
would  have  saved  to  the  producers  of  our  agricultural  products  millions 
of  dollars. 

PROTESTS  FROM  AUSTRIA  AGAINST   THE  REPEAL. 

The  minister  from  Austria  made  a  similar  protest  against  the  restor- 
ation of  the  duty  on  sugar  and  the  im])Osition  of  a  differential  duty 
upon  imports  from  that  country  as  a  violation  of  treaty  stipulations 
between  the  tv.o  c()untries,  not  only  applying  to  the  conunercial  arrange- 
ments negotiated  under  section  3  of  the  larift  act  of  ISOO,  but  also  in 
violation  of  article  3  of  a  treaty  concluded  between  Austria  and  the 
United  States  in  1812,  which  provides  that  goods  impoited  into  the 
United  States  from  Austria-Hungary  shall  be  subjected  to  no  discrimi- 
nation in  respect  to  duty. 

PROTEST  PROM  OtJATEMALA. 

The  minister  of  Guatemala  not  only  in  a  written  memorandum,  but 
in  personal  interviews,  remonstrated  against  the  repeal  of  the  reci- 
procity arrangement  with  that  country,  on  the  grouncl  that  large  sums 
of  money  had  been  invested  by  his  countrymen  in  plantations  and  in 
machinery  for  the  production  of  sugar  with  a  view  to  enjoying  the  ben- 
elits  of  the  American  markets;  that  this  large  outlay  would  not  have 
been  incurred  had  they  supposed  that  the  Government  of  the  United 
States  contemplated  an  early  abandonment  of  the  reciprocity  policy 
and  the  inii)osition  of  v^.  tax  upon  Guatemala  sugar;  that  the  ability  of 
Guatemala  tojiroduce  sugar  had  been  demonstrated;  that  the  bill  before 
Congress  ivkvolved  a  discrimination  against  Guatemala  in  that  it  pro- 
vided for  the  free  admission  of  Hawaiian  sugar,  produced  by  coolie  and 
contract  labor,  and  tht»t  linancial  ruin  wouhl  befall  the  sugar  producers 
of  Guatemala  should  the  bill  become  a  law  and  a  duty  be  imi.  sod 
upon  sugar  imported  from  that  country  into  the  United  States. 


THE  PROTEST  FROM  BRAZIL. 


Mr.  Mendon^a,  the  lirazilian  minister,  who  had  negotiated  the  first 
reciprocity  arrangement  under  tlie  act  of  1890,  called  the  attention  of 
the  Secretarv  of  State,  in  a  most  courteous  manner,  to  the  fact  that 
the  comj)act  with  his  country  provided,  by  its  own  terms,  a  method  for 


RECIPROCITY   AND    COMMERCIAL   TREATIES. 


25 


[ress  they 

[JoilftTCSS, 

8  millious 


he  rbstor- 
itial  duty 
ipulatioiis 
1  airaiiffe- 
•ut  also  in 
I  and  the 
.  into  the 
» aisciimi- 


sdum,  but 
the  reci- 

irgG  sums 

18  and  in 
the  ben- 
no  t  have 

le  United 

ity  policy 
ability  of 

jill  before 
at  it  pro- 

30olie  and 
noducers 
inii.  sod 

i8. 


the  ftrat 

tention  of 

fact  that 

letUod  lor 


its  termination  upon  six  months'  notice  by  either  Government,  and  said 
that  his  Government  expectec'  th{>t  i'j  would  be  observed. 

Secretary  Gresham  responded  that  all  the  arrangements  contracted 
under  the  tariff  act  of  18!)0  were  rei)ealed  by  tlie  tariff  act  of  1S!U 
without  regard  to  their  stipulatioiK'?,  and  rennnded  Mr.  Meudonca  that 
the  act  of  1890  "did  not  contemplate  the  creation  of  a  condition  of 
things  which  it  would  not  be  within  the  power  of  this  Government  at 
any  time  to  alter." 

REMON^ITRANCES  FROM  OTHER   COUNTRIES. 

The  Governments  of  Nicaragua,  Casta  Rica,  and  Santo  Domingo 
entered  modest  protests,  and  expressed  their  regrets  at  the  termination 
of  arrangements  Avhich  had  beeii  highly  satisfactory  to  them,  ani-.,  as 
they  supposed,  profitable  to  the  United  States,  .'t  was  not  expedient, 
if  it  had  been  possible,  for  any  of  our  neighboring  republics  to  show 
resentment;  but  even  if  they  were  able  to  do  so  the  difference  in  ])op- 
ulation,  wealth,  and  military  strength  betwc^^n  them  and  the  United 
States  should  have  made  us  the  more  generoiis  and  scruinilous  in 
observing  the  obligations  we  had  incurred. 

U'^nder  these  reciprocal  agreements  the  United  States  stood  in  a 
position  to  command  and  control  its  share  of  the  trade  of  the  tropical 
portion  of  the  southern  continent,  and  it  would  have  been  possible  to 
lu'gotiate  similar  arrangements  with  other  countries.  All  of  the  arti- 
cles involved,  except  lead  ore,  were  placed  upon  the  free  list  by  the  act 
of  1894,  without  asking  anything  in  return  or  giving  any  opportunity 
by  diplomatic  negotiation  to  secure  valuable  concessions  for  the  benefit 
of  our  farmers  and  mechanics.  Thus  that  mea'^ure  not  only  repudiated 
and  rejected  all  the  advantages  tliat  had  been  obtained  for  cur  products 
in  the  southern  luitions,  but  threw  away  the  prospect  of  obtaining 
additional  markets  for  our  surplus  products. 

MAGNITUDE  AND  VARIETY  OF  THE  INTERESTS  INVOLVED. 

Nearly  every  city  and  town  in  the  United  States  has  a  direct  and 
immediate  interest  in  the  extension  of  this  trade.  The  men  who  make 
the  articles  of  commerce  do  not  often  know  the  destination  of  their 
wares,  except  in  cases  of  large  contracts  or  (.'onsignmeuts.  The  South 
American  trade,  being  conducted  at  present  almost  exclusively  by  com- 
mission m.en,  is  peculiar  in  this  respect. 

Not  long  ago  a  gentleman  inteiested  in  the  promotion  of  our  export 
trade  to  Soutli  America  took  the  trouble  to  trace  to  its  source  every 
article  of  merchandise  that  composed  the  cargo  of  a  vessel  boujd 
frorn  New  York  to  one  of  the  southern  republics.  The  result  was 
astonishing. 

He  iountl  that  the  city  of  Chicago  furnished  to  this  cargo  axle  grease, 
link  belts,  folding  sewing  machines,  boilers,  car  axles,  mining  machinery, 
hardware,  agricultural  implements,  machinery,  oflice  8Ui)i)lies,  car- 
riages, wagons,  carts,  sewing  machines,  lieavy  inuttware,  furniture,  pro- 
visions, electrical  goods,  cutlery,  barbed  wire,  and  reapers. 

Other  towns  in  Illinois  contrlLuted  to  the  cargo  as  follo\\  s :  Belvidere, 
sewing  machines;  Canton,  agricultural  imijhMnenth;  Carpentersville, 
copying  presses;  Freeport,  buggies;  Geneseo,  road  carts;  Moline, 
plows;  Peoria,  bolts;  Pekin,  agricultural  imi)lements;  Rockford,  fur- 
niture and  patent  foot  machinery;  Itock  Island,  plow,;  Sandwich, 
reapers,  mowers,  agricultural  implements,  windmills,  etc.;  and  Ster- 
ling, agricultural  implemenlii. 


26 


RECIPROCITY   AND    COMMERCIAL    TREATIES. 


The  towns  of  Indiana  furnished  the  following:  Evansville,  ed^e 
tools;  Indianapolis,  office  desks;  Mishawaka,  pulleys;  Kiclimond,  grain 
drills,  etc.;  Shelbyville,  cabinets;  and  South  Bend,  plows,  wagons,  and 
carriages. 

The  towns  of  Iowa  furnished  the  following:  Dubuque,  windmills, 
etc.,  and  Ottumwa,  woodwork. 

The  towns  of  Michigan  furnished  the  following:  Detroit,  fans  and 
blowers;  Grand  Kapids,  furniture;  Three  Rivers,  velocipede  cars;  and 
White  Pigeon,  foot  and  hand  power  machinery. 

Those  of  Minnesota  as  follows :  St.  Paul,  prepared  coffee,  and  Still- 
water, agricultural  ifuplemcnts. 

The  towns  of  Ohio  furnished  the  following:  Alliance,  steel  castings; 
Biic;yrus,  grain-cleaning  machinery;  Cincinnati,  brass  goods  and  car- 
riages; Canton,  plows;  Cleveland,  steam  gauges  aj»d  bellows;  Dayton, 
sowing  machines,  bronze  castings,  ice  machines,  agricultural  imple- 
ments, carriage  wheels  and  hubs,  flle  cases,  and  Alters;  Defiance, 
machinery;  Hamilton,  steam  i)unij)s;  Piqua,  corrugated  iron;  San- 
dusky, whipstocks;  Springlield,  engines;  Toledo,  wagons;  Wilmington, 
auger  bits;  Mansflekl,  agricultural  implements,  machinery ,  and  i)luinb- 
ers'  materials. 

The  following  were  contributed  by  towns  in  Wisconsin:  Madison, 
printing  presses;  Milwaukee,  trunks,  machinery,  furniture,  ice  machine, 
and  beer;  liacine,  wagons,  machinery, furniture,  engines,  yachts,  trunks, 
wagons,  and  carriages;  and  Sheboygan,  furniture. 

Alabama:  Bessemer,  cast-iron  pipe. 

Missouri:  Kansas  City,  contracting  machinery;  St.  Louis,  general 
merchandise,  glass  and  crockery,  and  drugs. 

Pennsylvania:  Harrisburg,  bookbinders'  machinery;  Pittsburg,  gal- 
vanized sheet  iron,  locomotives,  and  chains. 

Other  cities  contributed  to  this  cargo  the  following  articles:  Porta- 
ble road-making  machines,  gas  engines,  portable  electric  motor  for 
drilling,  boots  and  shoes,  baseball  bats,  canned  beef,  brick-making 
machines,  patent  evaporator,  patent  cereals,  chairs,  cheese,  clocks,  cloth- 
ing, condensed  milk,  buckets,  canned  goods,  corn  meal,  wool  compres- 
sors, cotton-seed  oil,  dairy  utensils,  distillery  plant,  electric  light  j)lant, 
passenger  elevator  and  machinery,  furniture  and  vegetables,  seed,  har- 
ness, hay-baling  machine,  hosiery,  ice  factory  and  cold-storage  plants, 
knitting  machine,  oatmeal,  ornamental  tiles,  pickles,  pressed  bricks, 
plant,  saddletrees,  soap,  spokes  and  hubs  for  wheels,  starch,  laundry 
?nachinery,  strawboards,  watches,  wire  screens,  wooden  ware,  and  mate- 
rials ftjr  repairing  watches. 


m 


V. 


EFFECT 


OF    liECIPEOCLTT   UPON    THE    EX- 
POETS  OF  BREADSTUFFS. 


■I 


1 


The  milling  and  live-stock  industries  seem  to  have  suffered  more  by 
the  revocation  of  the  reciju'ocity  'irrangenients  thaii  any  other  inter- 
ests, and  from  them  hsive  come  the  most  urgent  ai)i)cals  lor  a  resto- 
ration of  the  policy,  a  reneT^'al  of  the  agreements,  and  the  application 
of  retaliatory  measures  against  the  unjust  discriminations  and  unnec- 
essary restrictions  that  embarrass  their  trade  with  foreign  customers. 
One  of  the  largest  manufacturers  of  flour  in  the  United  St<ate8,  and  an 
important  official  of  a  national  milling  association,  asserted  to  your 
committee  that  the  loss  to  the  merchant  millers  of  this  country  occa- 
sioned by  the  repeal  of  the  reciprocity  section  of  the  tariff  act  of  1890 
was,  at  least,  $ir),(tOO,0()(>  a  year,  or  4,00(),(K)(>  barrels  of  flour,  to  pro- 
duce which  would  require  the  continual  operation  of  133  flouring  mills 
with  a  capacity  of  100  barrels  per  day  each  for  a  year. 

It  is  claimed  that  the  milling  interest  is  the  largest  of  any  of  the 
manuftictures  of  the  United  States.  In  1890  it  paid  .$434,152,21)0  for  ma- 
terial, and  the  total  ])roduct  that  year  reached  a  value  of  $573,971,474, 
wiiich  was  $83,000,000  more  than  the  value  of  the  total  iron  and  steel 
]uo(luced  in  the  United  States,  $110,000,000  more  than  the  lumber, 
$24«;,000,0(M)  more  than  the  cotton  goods,  and  $380,000,000  more  than  the 
value  of  the  output  of  the  woolen  mills. 

'iHE  WHEAT  CONSUMED  AT  HOME  AND  THAT  EXPORTED. 

The  mills  of  the  United  St.ites  are  able  to  manufactur-^  400,000  bar- 
rels of  flour  daily  when  they  are  running  .at  full  time,  which,  in  two 
hundred  and  iifty  operating  days,  wouM  .'.mount  to  100,0(K),000  barrels 
of  Hour,  and  require  nearly  500,000,000  bushels  of  wheat.  But  the 
average  iiniuial  output  of  flour  d«)es  not  exceed  55,000,000  or  00,000.000 
barrels,  which  proves  that  the  mills  are  not  employed  more  than  half 
their  time. 

The  average  wheat  crop  in  this  (H)untry  is  about  400,000,000  bushels, 
of  which  an  average  of  100,000,000  is  exported,  and  110,000,000  is 
required  for  seed  and  to  feed  stock,  leaving  ab(Uit  250,000,000  bushels 
to  be  consumed  for  flour,  or  about  one-half  of  the  amount  that  would 
be  required  if  the  mills  were  running  to  their  full  capacity. 

The  exi)orts  of  wheat  are  very  irregular,  aiul  depend  largely  upon  the 
volume  of  the  crops  in  other  countries.  The  exjjorts  of  wheat  jumped 
from  55,000,000  bushels  in  1891  to  157,000,(*(K»  bushels  in  1892;  then 
dro|»|)ed  to  117,000,000  bushels  in  1893,  to  88,000,000  bushels  in  1894, 
an<l  finally  to  7(),000,0(M)  bushels  in  1895.  This  irregularity  is,  of  course, 
a  grci't  embarrassment  to  the  producer  and  to  the  milling  interest,  and 
causes  wid<^  fluctuations  in  prices. 

91 


^mmum 


mmi 


28 


RECIPROCITY    AND    COMMERCIAL   TREATIES. 


CONDITION   OF   THE   MILLING  INDUSTRY. 


:  .i«! 


it  I 


There  are  18,470  mills  in  the  tJnited  States  according:  to  the  last 
census,  althongli  the  number  and  capacity  has  been  largely  increased 
since  1890;  and  they  are  scattered  over  the  entire  country,  being  found 
in  2,800  different  counties.  Almost  every  Congressional  district  in  the 
land  is  represented  by  from  1  to  100  mills.  To  day,  according  to  tbe 
testimony  of  the  representatives  of  the  Millers'  Association,  2,000 
mills  are  absolutely  idle,  and  the  most  of  the  renuiinder  are  running  on 
half  time.  ^ 

According  to  the  evidence,  the  mamifacture  of  flour  has  decreased 
considerably  during  the  last  three  years,  although  the  population  of  the 
United  States,  ac(;ording  to  the  estiiiuites  of  the  Bureau  of  Statistics, 
has  increased  from  62,()22,000  in  1890,  to  09,753,000  in  1895. 

The  representative  of  one  of  the  largest  milling  companies  in  the 
country  writes  as  follows : 

We  have  two  less  establishments  than  ve  had  four  years  ago.  One  large  mill  was 
lost  by  fire,  which  we  have  not  rebuilt,  and  to-day  wo  cou]<l  not  sell  the  prop(>rtioB 
we  own  lor  50  per  cent  of  their  cost  or  what  we  could  erect  them  for.  We  believe 
that  this  will  aj)ply  to  .almost  any  inill  in  the  United  States  that  is  not  exceptionally 
well  situated ;  and  for  the  past  three  years  we  Lave  not  run  our  mills  over  60  per  cent 
of  the  time  that  we  ran  them  six  years  ago.  We  do  not  believe  that  over  50  per 
cent  of  the  wheat  pioduced  in  this  (!Ountry  can  be  absorbed  in  our  domestic  markets. 

The  present  cost  of  producing  flour  is  only  about  65  per  cent  of  what 
it  was  six  years  ago.  Wages  have  been  reduced ;  the  cost  of  all  milling 
supplies,  machinery,  and  repairs  is  much  lower  than  it  was  then,  and 
the  prices  of  raw  material  and  transportation  are  fully  25  per  cent 
lower.  The  last  two  items,  however,  are  entirely  (controlled  by  the  com- 
petition of  wheat  producing  countries  abroad  and  the  volume  of  the 
crops  in  this  country. 

The  millers  who  have  testified  before  this  committ«^e  assert  that  in 
1892  they  easily  got  a  proht  of  from  10  to  15  cents  a  barrel  over  and 
above  the  cost  of  production,  while  at  present  they  consider  5  cents  a 
barrel  a  fair  profit,  and  are  glad  to  get  3  cents,  it  is  asserted  also  that 
since  the  reciprocity  arrangements  were  repealed  so  much  flour  has 
been  thrown  back  upon  this  country  from  the  (Juban  aiul  Brazilian 
markets  that  the  avera:^e  miller,  who  is  not  exceptionally  well  located 
in  relation  to  the  domestic  markets,  has  been  glad  to  run  his  mill  with- 
out loss. 

The  total  production  of  wheat  in  the  United  States  for  the  year  1895 
shows  an  increase  of  07,000,000  bushels  over  the  ])revious  year,  although 
there  was  a  falling  ort"  of  about  1,000,000  barrels  in  the  exports  of  flour, 
when  there  ought  to  have  been  a  natural  increase  of  13,000,000  barrels 
to  have  absorbed  the  surplus  wheat.  The  object  of  the  mille 's  is  to 
turn  the  surplus  wheat  into  flour  and  export  the  flour  in  order  that  the 
labor  and  the  profit  of  the  manufacture  may  be  enjoyed  in  this  country. 

VALUE  OF  RECIPROCITY  TO  iHE  FLOUR  TRADE. 

There  is  no  question  as  to  the  value  of  reciprocity  arrangements  to 
the  millers.  Tliere  is  no  industry  which  festilies  so  earnestly  in  their 
favor,  for  it  felt  the  effect  more  fully  and  directly  than  any  other  branch 
of  trade. 

The  exi)orts  of  flour  in  1891,  the  year  previous  to  the  negotiations  of 
the  arrangements,  were  11,344,304  barrels;  in  1892,  the  year  after  they 
were  negotiated,  they  were  15,190,769  barrels;  in  185)3,  they  were 
16,620,339  barrels;  iu  1894,  they  were  10,859,633  barrels,  and  then,  in 


RECIPROCITY   AND   COMMERCIAL    TREATIES. 


29 


the  last 
ncreased 
II  g  found 
ict  in  the 
ig  to  the 
[)!i,  2,000 
Liiniiifi  on 

lecreased 
ion  of  the 
statistics, 

Bs  in  the 


ge  mill  was 
)  properties 
We  bolit^ve 
ceptionally 
60  per  cent 
over  50  per 
ic  markets. 

t  of  what 
1,11  milling 
then,  and 
per  cent 
the  Coni- 
ne of  the 

t  that  in 
over  and 
5  cents  a 
also  that 
flour  has 
Brazilian 
1  located 
mill  with- 

yoar  1895 
although 
s  of  flour, 
)0  barrels 
e -s  is  to 
that  the 
country. 


ments  to 
in  their 
}r  branch 

iations  of 
(tor  they 

ley  were 
then,  in 


:1 


1895,  after  the  treaties  had  been  revoked,  the  exports  droi)ped  to 
15,268,892  barrels. 

The  Millers'  Associittion  of  Minnesota,  in  reply  to  the  inquiries  of  the 
committee,  furnish  this  convincing  testiuiony: 

First.  The  ell'ect  of  tlie  reciprocity  iirran,<;eiiieiits  negotiated  by  the  Government 
niuler  authority  of  the  tariff  act  of  1890  was  favorable  to  the  f'nrthoriiig  and  enlarg- 
ing of  our  business  with  the  countries  affected.  Take,  for  exanii)le,  Cuba.  The 
Hour  shipments  to  that  country  during  vhe  years  1890-94  were  as  follows: 

Barrt'ls. 

18!)0 : 225,820 

1891 Hi,  447 

1892 366,175 

\\'hi(!h  shows  a  gratifying  increase  during  the  years  th'3  treaty  was  in  effect,  our  Hour 
during  that  time  ])ayiug  a  duty  of  88  cents  i)er  barrel. 
The  trade  with  lirazil  during  these  years  also  shows  a  substantial  increase,  being — 

Biirrel.s.  |  JSarrels. 

1S91 722,367!  1893 837,639 

1892 918,447  !  1894 91-0,869 

While  our  shipments  to  Germany  show  a  still  larger  percentage  of  increase,  being — 


Harrfils. 

1893 616,406 

1894 662,248 


liarrels. 

1891 8,864 

1892 54,277 


Hairols. 

1893 209,719 

1894 286,229 


Second.  The  effect  of  the  repeal  of  the  tariff"  of  1894  was,  that  our  business,  instead 
of  increasing  as  it  hiid  been  under  the  stimulating  effects  of  the  reciprocity  treaties, 
fell  off  to  a  remarkable  degreee;  our  exports  to  Cuba  in  1895  b(;ing  only  379, 856  bar- 
rels against  6(i2,248  barrels  in  1894,  and  the  duty  which,  under  the  treaties  had  been 
88  cents  a  barrel,  was  increased  to  !f4.16  per  barrel,  which  it  now  is,  and  a  prohibit- 
ive one.  Our  trade  with  Brazil  fell  oil'  during  1895  .about  145,000  barrels,  and  where 
heretofore  our  Hour  was  admitted  free  there  is  a  duty  of  52  cents  ])er  barrel.  Our 
shipments  to  Oermany  in  1895  being  256,6.50  barrels  compared  with  286,229  barrels 
the  year  previonb,  under  a  tariff  of  $1.54  per  barrel,  show  a  falling  off  of  about  10 
per  cent,  all  of  w'lich  we  believe  to  be  the  direct;  effect  of  the  abrogation  of  the  reci- 
procity treaties  with  the  above  countries;  and  to  the  same  cause  we  attribute  the 
fact  that  France,  lU^lginm,  and  Germany  have  all  since  j)ut  a  discriminating  and 
Prohibitive  duty  on  American  Hour,  being  21  cents  to  $1.06,  38  and  77  cents,  respec- 
tively. 

Third.  We  are  heartily  in  favor  of  a  general  law  being  p.issed  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  foreijin  <M>untries,  for  having  .already 
been  tried  and  proved  successful,  ad  the  record  of  the  steatly  increase  in  our  forciign 
business  during  the  short  i)eriod  which  the  previous  reciprocity  law  was  in  effect 
will  show,  we  believe  this  to  be  the  most  practical,  effective,  and  desirable  way  to 
open  the  markets  of  the  world  to  our  products. 

Fourth.  Not  alone  are  the  high  tariffs  imposed  upon  our  flour  by  most  continental 
countries  our  only  grievance,  but  the  fact  tliat,  wltii  t'le  exception  of  (irei't  K.ita"'i, 
Holland,  and  Denmark,  they  practically  all  h:we  d'^cTiminating  duties  against  our 
flour  compared  with  our  wheat,  being  thus  enable'!  to  buy  our  wheat,  manufacture 
it  into  flour,  and  sell  it  in  their  own  markets  at  i)riccs  we  can  not  comitete  with. 

DUTIES  IMPOSED  UPON  FLOUR  DURING  AND  SINt'E  RECIPROCITY. 

The  reciprocity  treaty  with  the  Republic  of  Santo  Domingo  was  pro- 
claimed September  1,  i8!>l,  and  all  the  bieadstutis  that  are  mentioned 
in  the  schedule  were  admitted  tree.  There  is  a  tariff  now  of  $4.50  per 
barrel  on  Hour. 

The  treaty  with  Clreat  Britain,  including  Trinidad,  Barbadoes,  the 
Windward  and  Leeward  Islands,  British  (Juiana,  and  Jamaica,  was 
proclaimed  February  1,  1892,  under  which  brea<lstuffs  paid  25  per  C4>nt 
duty  ad  valorem.  Now  the  tarill's  range  from  7'.;  cents,  the  lowest,  to 
$1.92,  the  highest,  per  barrel. 

The  (ruatemal?'  treaty  was  proclaimed  May  18,  1892,  and  grain,  corn 
meal,  and  all  breadstutfs  mentioned  in  the  schedule  were  admitted  free. 
There  is  a  tariff  now  imposed  of  $2.65  jjer  barrel  ou  dour. 


errwin 


30 


RECIPROCITY    AND    COMMERCIAL    TREATIES. 


The  Honduras  treaty  was  proclairned  April  30,  1892,  jit  which  time 
the  tariff  was  50  cents  per  barrel.  That  was  abolished,  and  since  the 
abrogation  of  the  treaty  a  duty  of  25  cents  per  barrel  has  been  imposed. 

The  Nicaragua  treaty  was  ])ro('lainied  March  12,  1892,  and  all  bread- 
stuffs  enumerated  in  the  schedule  were  admitted  free.  There  is  a  tariff 
of  90  cents  per  100  pounds  imposed  upon  flour. 

The  Salvador  tariff"  was  ])roclaimed  December  27, 1892,  and  corn, 
rice,  barley,  rye,  and  all  breadstuff's  mentioned  in  the  schedule  were 
admitted  free.  Since  the  abrogation  of  the  treaty,  flour  imported  into 
that  country  has  been  taxed  90  cents  per  100  pounds. 

Under  the  Costa  Eica  agreement  all  breadstuff's  were  admitted  free. 
Now  there  is  a  tariff"  of  90  cents  per  100  pounds  imposed  upon  flour. 

THE  EFFECT  UPON  ALL  FORMS  OF  BREADSTUFFS. 

The  effect  of  the  tariff"  act  of  1894  was  seriously  felt  in  the  exports  of 
all  forms  of  breadstuffs,  and  the  total  for  1895  was  smaller  than  for  any 
year  since  1875.  The  following  table  shows  the  exports  of  breadstuff's 
annually  during  the  last  twenty  years: 


Year. 

IJrcadstuffs. 

Year. 

Bruadstuffs. 

1875 

$111,458,265 
131,181,555 
117,  806, 476 
181,777,841 
210,  355,  528 
288, 036,  835 
270, 332, 519 
182,  670,  528 
208,  040,  850 
162,544,715 
100, 370,  821 

1880 

$125, 840, 558 
165,  768, 662 

1878 

1887 

HJ77 

1888 

127, 191, 687 

1878 

1H89 

123,876,661 

1 879 

1890 

154,925,927 
128,121,356 

1880 

1891 

1881 

1892 

299,363,117 

1882 

1893 

200,  312,  654 

1883              

1894        

166,  777,  229 
114, 604, 780 

1884 

1895 

1886 

The  percentage  of  agricultural  products  exported  from  the  United 
States  in  comparison  with  other  exports  is  as  follows : 


Division  of  exports  hypet 

•centages. 

Year. 

Farms. 

Mines. 

Forests. 

Fisheries. 

Mann  fac- 
tories. 

Miscel- 
laneous. 

1891 

73.69 
78.69 
74.65 
72. 28 
09.73 

2.53 
2.04 
2.41 
2.35 
2.33 

3.29 
2.75 
3.38 
3. 22 
3.61 

71 
53 
67 
49 
67 

19.37 
la.  61 
19.02 
21.14 
23.14 

41 

1892..-. 

1893 

38 
47 

1894 

62 

1895 

62 

THE  MILLERS  FAVOR  RECIPROCITY. 

Kehlor  Bros.,  of  St.  Louis,  report  that  the  effect  of  the  reciprocity 
trejities  made  in  1890  "was  very  favorable  to  the  export  trade  of  the 
United  States.  They  kept  the  flour  trade  in  a  healthy  condition,  and 
were  the  cause  of  the  flno  development  of  that  industry  that  has  placed 
us  ahead  of  all  other  milling  countries.  The  effect  of  their  repeal  is 
the  disastrous  condition  of  the  milling  trade  now  existing.  Imme- 
diately after  the  repeal  the  New  York  Tribune  wrote  us  asking  our 
opinion  regarding  what  the  result  would  be.  We  think  we  are  on  rec- 
ord with  them  as  stating  at  that  time  that  the  result  would  be,  in  our 
opinion,  that  wheat  in  St.  Louis  would  never  be  worth  more  than  75 
cents  per  bushel  under  any  circumstances,  except  during  comparative 
famine.  Since  that  time  we  have  had  j)oor  crops,  but  the  price  of 
yfheat  has  never  stayed  one  week  in  this  umrket  over  75  cents  p^p 


RECIPROCITY   AND    COMMERCIAL   TREATIES. 


81 


vhich  time 
I  since  the 
n  imposed, 
all  bread- 
B  is  a  taritt" 

and  corn, 
ediile  were 
)orted  into 

litted  free, 
n  flour. 

3. 

exports  of 
iin  for  any 
jreadstnfls 


Breadstuffs. 


$125,840,558 
165, 768, 662 
127, 191,  687 
123,876,661 
154,925,927 
128, 121,  356 
299,36;t,  117 
2U0,  312,  654 
166, 777,  229 
114, 604, 780 


;lie  United 


1  fan- 

MiHcel- 

es. 

InneouH. 

).37 

41 

i.61 

38 

(.02 

47 

.14 

52 

.14 

62 

eciprocity 
ide  of  the 
ition,  and 
IS  placed 
rei)eal  is 
Immo- 
sking  our 
re  on  rec- 
bo,  in  our 
'e  than  75 
nparative 
price  of 
ceuta  p^p 


bushel,  and  has  been  as  low  as  40  cents  per  bushel,  and  it  did  not  reach 
75  cents  per  bushel  by  legitimate  means. 

"The  effect  of  repeal  of  reciprocity  upon  farm  products  has  been  to 
such  an  extent  that  it  has  reduced  their  vahu'  lower  than  the  record  of 
any  previous  years. 

"We  favor  the  reciprocity  principle  in  future  tariff"  legislation  from 
beginning  to  end,  believing  the  ])resent  system  is  as  indirect  an 
exhaustion  of  the  strength  of  the  United  States  as  can  possibly  be 
adopted.  We  believe  that  the  producing  capacity  of  the  United  States 
of  raw  nuiterials  is  the  basis  of  all  comtbrts  that  both  rich  and  poor 
can  get,  and  their  manufacture  is  just  so  much  additional,  as  it  disposes 
of  our  labor  at  the  same  time  with  our  raw  materials.  Any  legislation 
that  cuts  off  our  labor  and  depreciates  the  value  of  our  raw  material 
simply  impoverishes  the  country,  and  especially  the  laboring  popula- 
tion. We  believe  that  any  country  that  will  discriminate  against  our 
labor  should  be  shut  oft"  commercially  from  theUnited  States  altogether. 
We  would  be  better  off'  and  have  the  gold  that  they  draw  from  us,  which 
we  need  very  badly." 

TESTIMONY   OF   THE  MERCHANTS  OP  BALTIMORE. 

Among  the  beneficiaries  of  the  reciprocity  policy  were  the  merchants 
and  ship-owners  of  Baltimore,  who  were  largely  engaged  in  trade  with 
Brazil  and  the  Spanish  West  Indies.  They  were  represented  before 
the  committee  by  President  Levering,  of  the  Baltimore  Board  of  Trade, 
and  C.  Morton  Stewart,  whose  firm  owns  a  number  of  vessels  eini)loyed 
in  the  Brazilian  trade,  and  is  largely  interested  in  that  business.  It 
appears  from  the  statements  submitted  by  them  that  not  only  did  tlie 
exports  of  flour  from  Baltimore  to  Brazil  drop  from  930,000  barrels  in 
the  year  ended  June  30, 1894  (which  was  an  increase  of  258,000  barrels 
over  18!)0,  the  year  preceding  the  adoption  of  the  reciprocity  agreement), 
to  842,000  in  the  year  1895  (after  the  abrogation  of  the  agreement),  but 
that,  owing  to  changes  in  tlie  Brazilian  tariff'  and  in  Brazilian  freight 
rates,  due  to  the  re])eal  of  reciprocity,  the  trade  in  flour  with  that 
country  has  been  virtually  destroyed  within  the  last  few  months,  and 
the  American  vessels  which  were  therein  employed  are  idle  for  lack  of 
profitable  cargoes. 

The  exporters  of  provisions  have  also  suffered  serious  injury  on 
account  of  the  abrogation  of  the  reciprocity  agreement  with  Brazil, 
according  to  the  statements  of  Messrs.  Levering  and  Stewart.  They 
both  declared  emphatically  that  the  reciprocity  agreements  resulted  in 
a  large  and  remunerative  increase  of  the  foreign  trade  of  Baltimore; 
that  the  abrogation  of  these  agreements  had  resulted  disastrously  to 
the  business  and  commercial  interests  of  that  city  as  well  as  to  West- 
ern producers,  and  they  strongly  advocate  a  return  to  the  policy  so 
unwisely  and  improvidently  abandoned  by  Congress  two  years  ago. 

"The  great  Rei)ublic  of  the  Northern  Hemisphere  is  in  sympathy  with 
the  great  liei)ublic  of  the  Southern  Hemisphere,"  said  Mr.  G.  Morton 
Stewart,  of  Baltimore,  "and  consequently  there  is  every  logical  reason 
to  think  that  that  which  started  so  well  would  have  gone  on  indefinitely 
until  there  would  have  been  a  commercial  association  and  unity  that 
would  have  bound  us  close  to  the  Brazilian  people.  There  is  no  doubt 
about  it." 

THE  INJURY  TO  THE  BRAZILIAN   TRADE  PERMANENT. 

Tt  is  feared  that  the  injury  done  to  our  commerce  with  Brazil  by  the 
repeal  of  the  reciprocity  arrangement  is  permaneL*,  at  least  so  far  as 
flour  is  concerned.    Under  that  convention,  from  April  1,  1891,  to 


ill 


32 


RKCIPROCITY    AND    COMMERCIAL    TREATIES. 


August  28,  1804,  Hour  from  tlie  United  States  was  adinittod  free  into 
that  country.  Now  tliore  is  a  duty  of  .52  cents  a  barrel.  Then  we  luid 
absolute  control  of  the  market.  Now  our  wheat  and  flour  exporters 
are  entirely  t  the  mercy  of  the  Argentine  Kei)ublic  and  the  capitalists 
who  have  ei. cted  mills  in  Brazil  to  grind  the  wheat  from  that  country 
and  Uruguay.  Before  the  reciprocity  ])olicy  was  repealed  theie  were 
only  a  few  fl<mr  mills  in  Brazil.  Now  tliey  are  sju'inging  up  all  along 
the  coast,  built  by  Argentine  and  Uruguay  millers,  with  Euro])ean  cap- 
ital, and  tilled  with  European  machinery,  to  avoid  the  duty  ui)on  flour, 
lor  wheat  is  admitted  free. 

Formerly  little  or  no  wheat  was  imported  into  Brazil  from  the  River 
i'late  countries.  Now  the  trade  amounts  to  thousands  of  tons,  and  is 
lapidly  increasing.  It  will  be  only  a  short  time  at  the  present  rate  of 
increase  before  the  ^vrgentine  Republic  and  Uruguay  will  have  driven 
American  wheat  and  flour  oif  the  east  coast  of  South  America,  as  Chile 
has  driven  it  ott"  the  west  coast.  Ten  years  ago  California  and  Oregon 
lh)ur  was  sold  by  the  cargo  as  far  south  as  Lima  and  Valparaiso,  and 
we  fed  Ecuador,  Peru,  and  the  peoj)le  of  Colombia  Avho  live  on  the 
Pacific  Coast.  But  since  the  develoi)ment  of  the  milling  industry  in 
Chile,  American  flour  seldom  goes  farther  so!  th  than  Panama,  and  we 
iiave  lost  a  ])ortion  of  the  trade  of  tiiat  city  also.  We  still  control  the 
markets  of  Central  America,  but  the  Chilean  millers  occasionally  send 
a  cargo  to  Ni(!aiagua  and  Guatemala  on  the  German  ships  which  go  up 
there  during  the  coflee  season. 


DEVELOPMENT  OF  THE   MILLING  INDUSTRY  IN  THE  RIVER  PLATE. 


The  flour  industry  is  also  increasing  rapidly  in  the  Argentine  liepublic 
and  Uruguay.  Those  countries  are  beginning  to  see  that  there  is  more 
money  in  ex])orting  flour  than  there  is  in  exporting  wheat,  and  compe- 
tition from  them  has  become  so  great  in  the  Brazilian  markets  that 
Mr.  C.  Morton  Stewart,  of  Baltimore,  who  is  very  largely  engaged  in 
the  trade,  informed  this  committee  that  the  export  price  of  flour  for 
Brazil  in  Baltimore  now  is  only  from  $2.85  to  $3.70  a  barrel,  compared 
with  $4  to  $4.50  under  the  reciprocity  arrangements  three  years  ago. 

The  i)eople  of  the  United  States  have  very  little  comprehension  of 
the  growth  of  the  agricultural  industry  in  the  Argentine  Republic  and 
Uruguay  and  the  danger  that  confronts  our  grain  as  well  as  our  cattle 
interests  from  that  dire<!tion. 

In  1880  the  Argentine  Republic  was  importing  flour  and  wheat,  but 
in  1882  the  tide  turned  and  nearly  2,000  tons  were  exported  from  that 
country.  About  that  time  modern  mills  were  introduced,  and  soon 
after  the  flour  product  exceeded  the  local  demand,  and  the  Argentine 
millers  began  to  shij)  it  to  Europe.  The  following  statements  show  the 
ex])oits  of  wheat  and  flour  annually  from  the  Argentine  Republic  since 
that  time: 

Exports  of  ichcal  and  flour  Jrom  Argentine. 


Year. 

Wheat. 

Flour. 

Year.        ; 

Wheat. 

Flour. 

1882 

Tons. 

1,700 

61,000 

108,499 

78,  493 

37,  864 

257,  865 

178,928 

Tons. 

'3,' 734' 

7,447 
5,262 
5,442 
0, 302 

1889 

Ton*. 

22.  806 

327,  894 

395,  555 

490, 109 

1,000,137 

1,608,600 

♦1,046,000 

Tmis. 
3  360 

1883 

1S90 

12  117 

1884 

1S!)1 

7, 015 
18,  849 
37  5''1 

1885 

1892    . 

1886 

18' (3 

1887 

1894    . 

56  81" 

1888 

1895 

•  55,  865 

*  To  Kuroju'  and  Urazil  only.    Beturns  from  other  uountrios  not  yet  obtainable. 


RECIPROCITY    AND    COMMERCIAL    TREATIES. 


33 


I  free  into 
cMi  we  had 
exjwrters 
capitalists 
lit  country 
there  were 
[)  all  along 
:)pean  cap- 
il)on  flour, 

I  the  River 
ons,  and  is 
ent  rate  of 
ave  driven 
!a,  as  Chile 
,nd  Oregon 
araiso,  and 
ivc  on  the 
industry  in 
ma,  and  we 
control  the 
anally  send 
rhich  go  up 


lU  PLATE. 

iieliepublic 
ere  is  more 
and  compe- 
irkets  that 
engaged  in 
of  tlour  for 

compared 
ears  ago. 
eliensiou  of 

public  and 
s  our  cattle 

wheat,  but 
from  that 
,  and  soon 
Argentine 
ts  show  the 
>ul)lic  since 


lieat. 

Flour. 

'ant. 

Tons. 

^•J.  HOG 

3,  360 

327,  894 

12,117 

;!95,  555 

7,015 

4iK),  109 

18,  849 

)00, 137 

37,621 

308,600 

56, 812 

846, 000 

*  65, 866 

EXPORTS  OF  WHEAT  AND  FLOUE  TO  BRAZIL. 

The  following  statement  shows  the  exports  of  wheat  and  flour  from 
the  Argentine  Kepublio  to  Brazil  for  the  four  years  named: 


Year. 


1S91 
18!t2 

]Hi);i 

1894 


Wheat. 


Bmhelt. 
3, 809, 607 
4, 160, 338 
8,  552, 070 
17,  457,  394 


Wheat 
flour. 


Pounds. 
4, 670, 540 
22, 844, 272 
58,318,813 
71, 830, 929 


table. 


Mr.  Mulhalljthe  w^ell  known  statistician  of  the  London  Times,  who  is 
also  editor  of  the  Buenos  Ayres  Standard,  gives  it  as  his  opinion  that 
tlie  area  in  wheat,  in  the  Argentine  llepublic  in  1895  was  double  that  of 
1S{)3,  or  more  than  7,(K)(),()()0  acres.  The  following  are  his  estimates  of 
the  wheat  acreage  for  the  last  three  years,  which  will  illustrate  the 
magnitude  as  well  as  the  growth  of  the  industry  in  that  country,  and 
indicates  whac  our  wheat  farmers  are  to  expect  in  the  future: 

Acres. 

1893... 3,305,000 

l«'.tt 5,453,200 

1895 7,436,000 

THE  TIDE  OF  IMMIGF  ATION. 

The  number  of  immigrants  to  the  Argentine  Republic  in  1891  was 
28,2(10;  in  1895  they  numbered  61,220.  The  most  of  these  immigrants 
go  into  the  interior  and  settle  upon  agricultural  lands  which  are  fur- 
nished them  free  by  the  Government.  In  fact,  the  agricultural  devel- 
opment of  the  country  is  very  similar  to  that  which  was  going  on  in 
the  Mississippi  Valley  twenty  years  ago. 

It  is  ini[»ortrtnt,  also,  to  consider  that  the  cost  of  raising  wheat  in  the 
Argentine  Republic  will  average  25  per  cent  less  than  in  the  United 
States,  and  that  the  average  cost  of  transporting  it  from  the  farmer's 
cart  to  the  hold  of  the  steamer  is  only  about  10  per  cent  of  its  market 
A  alue  at  the  seaboard.  Thus,  assuming  the  average  price  of  wheat  in 
Jiuenos  Ayres  t;t  $25  gold  per  ton,  the  average  cost  of  transportation  is 
$2.50  per  ton. 

SIMILAR  DEVELOPMENT   IN   URUGUAY. 

The  same  story  may  be  told  about  Uruguay.  Mr.  L.  Rodriguez  Diez, 
of  Montevideo,  who  has  recently  been  in  the  United  States  as  the 
agent  of  his  Government,  examining  into  the  methods  of  our  Agricul- 
tural Department  for  the  purpose  of  organizing  something  similar  in 
Uruguay,  made  a  very  interesting  statement  before  the  committee  con- 
certiing  the  growth  of  the  export  trade  in  beef  i)roduct8  and  cereals 
from  his  country.  He  showed  us  by  oflicial  statistics  that  the  exports 
of  wheat  from  Uruguay  had  increased  from  the  value  of  $169,307  in 
1893  to  $1,882,808  in  1894,  and  it  was  his  opinion  that  in  1895  the  gain 
was  100  per  cent. 

He  showed  us  also  that  there  had  been  a  similar  increase  in  the 
exports  of  flour,  which  were  only  1,054  tons  in  1893,  but  jumped  to 
360,024  tons  in  1894.  The  great  bulk  of  this  flour,  at  least  05  per  cent, 
goes  to  Brazil,  and  the  exports  in  1895  were  double  those  of  1894. 

The  exports  of  corn  from  Uruguay  in  1893  were  only  valued  at 
$23,272.    In  1894  the  value  was  $885,539,  and  there  was  a  v©ry  large 
increase  in  1895,  the  principal  market  being  BraziL 
H.  Rep.  2268 3 


34 


RECIPROCITY    AND    COMMP^RCIAL    TREATIES. 


Mr.  Rodrif^uez  stilted  that  no  more  windmills  are  being  erected  in 
Houtii  America.  They  are  all  now  furnished  with  Hungarian  rollers  and 
moved  by  steam  power. 

THE  MILLING  INDUSTRY  IN   THE  ARGENTINE   REPUBLIC. 

The  Hon.  W.  I.  Jiiichanan,  United  States  minister  to  the  Argentine 
Eepublic,  who  is  always  alert  when  the  interests  of  his  fellow-citizens 
arc  involved,  and  has  made  a  special  study  of  the  agricultural  devel- 
opment of  that  country,  has  recently  made  a  report  to  the  Secretary  of 
State  relative  to  the  llour  milling  industry.  He  gives  the  number  of 
mills  in  the  ]lei)ublic  as  410,  of  wliicli  ^70  are  lirst-class.  He  estimates 
the  (!a|)acity  as  1,346,040  tons  of  flour  per  year. 

The  roller  system  of  milling  was  introduced  about  fifteen  years  ago, 
and  Mr.  Buchanan  says  that  nuiiiy  of  the  mills  in  the  Argentine  Hepub- 
li(!  will  compare  favorably  with  the  best  in  the  United  States,  although 
they  are  not  so  large. 

"There  are  very  few  water  mills,  and  coal  costs  $4.85  per  ton.  Labor 
is  not  ex])eusive.  The  greater  part  of  the  wheat  growth  in  the  Kepub- 
lic,"  writes  Mr.  nuchanan,  "is  of  the  Barletta  variety.  This  yields 
from  14  to  15  i)er  cent  of  gluten  when  grown  near  the  coast  of  the  river 
Parana,  an<l  1  to  2  per  cent  less  when  grown  in  the  interior.  The 
Saldome  is  another  variety  grown  in  some  parts  of  the  Republic,  but  it 
is  deficient  in  gluten,  yiehling  only  10  to  l.'i  per  cent. 

"I  am  told  by  millers  that  with  good  machinery  and  average  wheat 
every  100  pounds  of  wheat  will  make  6(J  to  70  pounds  of  flour. 

"  The  wholesale  price  of  flour  in  this  city  at  this  writing  is  $1.80 
(U'lited  States  gold)  per  100  pounds.  The  price  of  bran  is  43  cents 
^United  States  gold)  per  100  i)ounds. 

"All  flour  is  shipped  in  sacks  of  90  kilograms  (198.4  pounds)  each. 
The  cost  of  the  empty  sack  is  12  cents  (gold). 

"The  largest  part  of  the  flour  export  from  this  country  is  consigned 
to  Brazilian  ])orts.  The  freight  rates  on  flour  between  this  city  and 
Brazilian  ports  is  as  follows:  Santos,*  12s.  to  138.  i)cr  1,\,-'')  kilograms; 
Uio  de  .lanerio,*  10s.  to  Us.;  Bahia  and  Pernambuco,  14s.  to  10s. 

"  The  duty  on  flour-mill  machinery  is  10  per  cent  on  the  value  of  the 
article. 

"The  Argentine  Government  levies  an  export  duty  on  flour  of  4 
per  cent  on  a  flxed  value  of  $4  (Argentine  gold)  per  100  kilograms 
(220.46  pounds)." 

THE  WHEAT  HARVESTS  OF  THE  WORLD. 

Every  month  somewhere  in  the  world  a  crop' of  wheat  is  harvested, 
as  follows: 

January — in  northern  Australia,  New  Zealand,  Venezuela,  Peru,  and 
in  other  countries  of  South  America;  February  and  March — in  India 
and  Egypt;  April — in  Persia,  Syria,  Cyprus,  and  Asia  Minor;  May — 
in  China,  Central  Asia,  Japan,  Algeria,  and  Morocco;  June — in  Cali- 
fornia, Oregon,  the  southern  United  States,  Spain,  Portugal,  Italy, 
Hungary,  Turkey,  Koumania,  south  Russia,  Bulgaria,  and  the  south  of 
France;  July  and  August, — in  the  south  of  England,  France,  northern 
United  States,  Germany,  Austria,  Switzerland,  Poland,  Denmark,  Hol- 
land, and  Belgium;  September  and  October — in  Scotland,  the  north  of 
Ii^nglaud,  Sweden,  and  northern  Russia;  November — in  South  Africa, 
Peru,  and  northern  Australia;  December — in  South  Australia,  Chile, 
Uruguay,  aud  the  Argentine  Republic. 


•Lighterage  at  4b. 
rates. 


9d.  to  5b.  per  1,000  kilograms  should  be  added  to  the  above 


V  VI. 

THE  SITUATION  IN  FEANOE  AND  GERMANY. 


kilojiTainy; 


;o  the  above 


The  repeal  of  the  reciprocity  arrangenient  with  GermaTiy  was  seri- 
ously prejudicial  to  the  Anieiican  miller,  for  the  (Tovemment  of  that 
Empire,  in  retaliation,  as  claimed,  for  the  difl'erential  dutj'  placed  upon 
its  beet-root  suj;ar  by  the  Fifty-third  Couj^ress,  immediately  imposed 
rates  upon  our  agricultural  pro<lucts  that  aie  practically  prohil)ilory, 
the  present  duty  upon  wheat  being  li  cents  a  bushel,  and  upon  Hour, 
$LMil  per  barrel. 

It  is  proper  to  assuiJie  that  those  who  trained  the  sugar  section  of  the 
taiitt'  act  of  1894  might  have  anticipated  such  reprisals,  for  they  had 
the  protest  of  the  German  ambatsador  before  them;  they  had  extracts 
from  the  official  and  semi-official  i/rgans  of  the  Government  that  con- 
tained threats  and  showed  a  -...idictive  s])irit;  they  had  dispatches 
from  the  United  States  legation  and  consuhites  in  Germapy  describing 
the  vehemence  and  growth  of  the  agrarian  sentiment  and  the  danger 
in  which  the  Government  stood  unless  it  made  some  concessi<ms  to 
their  denumds.  But  all  this  danger  to  the  farmers  who  furnish  our 
wheat  and.  corn  and  our  hogs  and  cattle,  and  the  millers  who  make 
our  Hour  for  export,  was  of  no  avail. 

The  situation  is  similar  in  France,  and  the  problem  that  involves  our 
trade  in  wheat  and  flour  to  those  countries  is  complicated  and  ]>erplex- 
iiig.  The  policy  of  their  Gov<'rnments  toward  the  imports  of  agricul- 
tural iiroducts  from  the  United  States  is  governed  by  local  sentiment, 
and  their  tariffs  are  intended  for  the  protection  of  local  industry  against 
an  invasion  of  flour  from  the  United  States,  which  is  conceded  to  be 
better  in  many  respects  than  that  which  is  manufactured  at  home.  But 
the  protection  that  has  been  given  the  French  millers  enables  them  to 
seriously  interfere  with  our  trade  in  Great  Britain  and  other  countries. 

France  has  a  millers'  association  of  3,500  members.  In  Germany 
there  is  a  millers'  association  of  2,800  members,  and  they  have  been 
organized  for  the  purpose  of  controlling  legislation  and  defending  their 
own  markets  against  the  United  States. 

From  France,  by  reason  of  the  fostering  policy  of  their  Government, 
during  the  last  twelve  months  the  local  millers  have  been  able  to  ship 
1^^00,000  barrels  of  flour  into  Great  Britain,  which  is  about  G  per  cent 
of  '^"r  entire  product  and  one-third  as  much  as  is  exported  to  Great 
Br.  u  from  America.  Therefore  the  millers  of  the  United  States  have 
not  only  lost  their  trade  in  France,  but  are  losing  their  trade  in  Eng- 
land, Scotland,  Ireland,  Belgium,  Holland,  Germany,  Africa,  and  other 
countries  by  reason  of  the  rai)id  development  of  milling  in  France.  And 
what  makeii  this  Bituatiou  the  more  aggravating  in  that  this  flour  is 


BB 


RECIPROCITY   AND   COMMERCIAL   TREATIES. 


largely  made  of  Anujricsiii  wheat.  Our  HhipiiumtH  of  vvhosit  to  France 
have  reached  42,000,(M)()  bushels  in  a  sin^hj  year.  The  Freiicli  miller 
receives  a  bounty  ol"  I<»  cents  a  barrel  on  all  tiie  ilour  hd  exporfs,  and 
has  a  rebate  in  full  of  all  the  duty  he  has  paid  upon  the  wheat  it  repre- 
sents. That  bounty  is  three  times  the  present  profit  of  American 
millers. 

WHAT  THE  'iilLLERS'  ASSOCIATION  THINKS  OF  THE  SITUATION. 

As  suggested  by  the  president  of  the  Millers'  Association : 

It  seeins  Htrange  to  a  man  in  the  milling  bnHiness  that,  with  the  capacity  to  uiunu- 
facturc  into  ilour  all  the  wheat  produced  in  tliis  country — und  we  could  manufacture 
it  all  in  the  period  of  eight  months,  with  our  present  capacity — tiiero  should  be 
exported  10(),000,(JOO  bUBhels  of  wheat.  That  exportation  mcauH  that  the  peojile  of 
this  country  must  forego  a  possible  profit  that  would  be  derived  from  the  manufac- 
ture, as  well  as  '^he  distribution  of  the  cost  of  such  manufacture,  which  has  been 
variously  estimated  at  from  $50,000,000  to  $80,000,000  per  year,  and  nqt  only  is  the 
Hour  niiiliug  interest  direcitly  inliueucod,  but  the  trade,  in  its  various  rauiifieations, 
is  also  induenOed.  Of  course,  the  raising  of  wheat  is  the  great  feature,  but  the 
manufacture  of  staves,  heading,  and  the  cooperage  necessary  for  packages  is  afl'ectod, 
and,  also,  the  manufacture  of  paper  sacks  and  cotton  sacks.  AH  these  jjcoplc  are 
deprived  of  a  possible  business  by  the  restrictions  ]>laced  upon  our  industry.  This 
can  be  carried  farther,  to  the  manufacture  of  milling  machinery,  which  is  also 
affected,  and  thb  business  of  manufacturing  milling  machinery,  with  the  growth  of 
the  industry  in  this  country  for  twenty  years,  is  one  of  great  magnitude. 

EVFEOT  OP  RECIPROCITY  UPON  FLOUR  EXPORTS  TO  GERMANY  AND 

FRANCE. 

Our  reciprocal  agreement  with  the  German  Empire  went  into  eflfect 
February  1,  1892,  under  which  our  flour  was  admitted  to  that  country 
at  the  reduced  rate  of  7.3  marks  per  100  kilograms,  or  $1.54  per  barrel, 
and  our  exi)ort8  of  that  finished  product  to  Germany  for  the  years  named 
were  as  follows : 

Barrels.    I  Barrels. 

1891 8,864  ;  1893 209,719 

1892 54,277  I  1894 286,229 

Which  shows  a  gain  of  more  than  3.137  per  cent,  while  for  the  year 
ending  June  30,  1895,  and  after  the  abrogation  of  the  reciprocal  agree- 
ment, our  exports  of  flour  to  that  country  fell  to  25(5, (350  barrels. 

In  1892  we  exported  to  France  210,403  barrels  of  flour,  valued  at 
$1,178,475,  and  In  the  year  1895,  under  the  present  tarii"  law,  our 
exports  we'-c)  on)  /  1,102  barrels,  valued  at  $4,174. 


THE  CONTEST  BETWEEN  AMERICAN  AND  RUSSIAN  GRAIN. 

Previous  to  February  1, 1893,  German,  imports  of  American  and  Rus- 
sian wheat  and  rye  were  subject  to  the  same  general  rates  of  duty — 
^1.19  per  100  kilograms,  or  $11.90  per  metric  ton  of  3,240  pounds.  The 
.  duty  on  the  flour  of  wheat  or  rye  from  both  countries  was  $3.50  per  100 
kilograms,  or  $25  per  ton.  But  on  that  date,  under  the  reciprocity 
arrangement,  the  duules  on  American  wheat  and  rye  were  reduced  to 
$8.33,  and  on  flour  to  $17.30  per  ton.  Meanwhile  similar  imports  from 
Kussia  continued  to  pay  the  former  or  standard  duties,  as  above  stated, 
until  the  Ist  of  August,  1893;  when,  in  consequence  of  disagreements 
between  the  two  Governments,  the  rates  of  duty  on  all  imports  from 
Ilussia  into  Germany  were  summarily  raised  50  per  cent,  and  became, 
respectively,  $17.85  per  ton  on  wheat  and  rye,  and  $37.50  per  ton  on 
flour. 


RECIPROCITY    ARD    COMMERCIAL    TREATIES. 


37 


Then  a  commercial  treaty  was  conchidert  between  Germany  and  Rus- 
sia which  swept  away  all  these  discriminations,  secured  to  the  wheat, 
(lour,  and  all  other  imports  from  Kussia  the  minimum  taritt'  conceded 
to  the  most  favored  nations,  and  put  that  country  upon  the  same  footing: 
as  that  of  the  United  States  while  the  reciprocity  arrangement  with  us 
was  in  force  in  all  that  relates  to  the  markets  of  Germany.  The  effect 
of  these  changed  conditions,  when  ai»plied  to  the  whole  list  of  imports, 
are  too  remote  and  wide  reaching  to  be  yet  estimated;  but,  in  respect 
to  breadstntts,  the  most  important  item  of  competition,  the  results  may 
be  already  seen. 


iNY  AND 


vn. 

DIftOPJMTE'ATIONS  AGAIIirST  AMEEICAJST 

COMMERCE. 


Tliorc  are  many  discriTninations,  restrictions,  and  other  obstacles 
im])oscd  by  forcijiii  (rovcriinients  to  the  extension  of  our  export  trade, 
])inti('ulariy  in  food  i)rodu(',ts,  in  addition  to  those  ah'eady  mentioned, 
wliieli  should  also  be  talceu  into  consideration  in  tlie  negotiation  of  com- 
nuTcial  arrangements  and  the  application  of  retaliatory  measures,  if 
found  necessary.  For  example,  in  a  memorandum  for  the  use  of  this 
committee,  Dr.  D.  E.  Salmon,  Chief  of  the  Bureau  of  Animal  Industry 
of  the  Department  of  Agriculture,  says: 

(iroat  Britiiin  requires  all  meat-producing  animals  to  .>e  landed  at  certain  pre- 
scribed places,  (ialled  foreign  animal  wharves,  where  all  must  he  slaughtered  within 
ten  diiys  from  the  time  of  lauding.  'I'his  prohibits  the  introduction  of  aninnils  for 
ia.tteuiug  purposes,  and  also  prevents  such  animals  from  being  laken  to  the  regular 
markets  of  the  country,  or  from  being  held  longer  than  ten  days  to  recover  from 
th(^  ell'ects  of  the  voy.age.  It  has  been  estimated  that  this  causes  a  loss  to  the 
American  exporters  of  al)out  .flO  a  head  on  each  bullock  exported. 

This  regulation  was  nia<le  on  account  of  tins  existence  of  jdeuro-pnonmonia  in  this 
country,  i)ut  the  IJritish  (Jovermient  has  iiositively  refused  to  modify  it  since  pleuro- 
l>neuiiionia  was  eradicated.  Sheep  have  been  admitted  into  the  Hritish  markets  until 
recently,  but  on  account  of  the  discovery  of  some  cases  of  scab  among  the  American 
sheep  these  animals  are  now  subjected  to  the  same  restrictions  as  are  appli'^d  to 
cattle. 

CATTLE   AND  BEEF   EXCLUDED   FROM   GERMANY. 

Germany  excludes  American  cattle  and  dressed  beef.  Pork  which  has  not  been 
inspected  and  certified  to  by  this  Government  is  also  excluded.  Cattle  and  fresh 
beef  wore  excluded,  on  the  ground  that  some  animals  affected  with  Texas  fever  were 
found  anu>ng  a  shi])nient  to  that  country.  In  case  this  assertion  was  correct,  it  does 
not  Justify  the  exclusion  of  either  cattle  or  beef.  No  cattle  from  the  Texas-fever 
district  are  allowed  shipment  to  Germany  or  any  other  Eur<^pean  country,  and  those 
which  do  not  come  from  that  district,  although  alfected,  are  incapable  of  spreading 
the  iliseiiso;  consequently  there  is  no  danger  to  Gernnm  cattle.  Incase  danger  is 
admitted,  our  cattle  could  be  unloaded  so  as  to  absolutely  guard  against  the 
si)r('a(l  of  the  disease.  All  atiimals  fn.in  this  country  are  ship))ed  for  immediate 
slaughter,  and  can  be  landed  at  places  set  apart  for  tliem  where  there  are  slaughter- 
ing establishments,  and  wliere  there  wou^d  bo  no  danger  of  their  coming  in  contact 
with  the  native  cattle  of  the  country.  1  hero  is  no  justification  for  excluding  our 
fresh  be(^f.  as  this  is  all  ins))ected  at  the  time  of  slaughter  and  is  accompanied  with 
a  certificate  from  this  Government  of  insju'ction  and  wholesomeness. 

'L'here  have  also  been  local  regTilations  and  restrictions  in  viirious  ]>arts  of  Germany 
which  have  greatly  interfered  with  the  sale  of  our  meals.  As  an  exani;)le  of  such 
ri'striclions,  1  refer  to  the  regulation  in  force  at  Freiburg  in  August  last,  which 
rc()uired  a  notice  to  be  posted  in  meat  shopd  where  America')  lueats  are  sold,  which 
stated  thai,  the  meat  hiid  only  been  superficially  examined  and  no  guaranty  could 
be  given  of  its  entire  freedom  from  un»vholesome  qualities.  Such  a  notice,  of  course, 
pr'icti<ally  prevented  the  sale  of  the  nu^at  to  which  it  referred. 

DISCRIMINATIONS  IN  FKANCE   AND  OTIIKK  COUNTRIES. 

Franco  excludes  An  erican  cattle  and  recoi\es  pork  only  when  iuMpected  and  certi- 

lied.     With  sheep  a  cevtilieate  is  lequired  that  the  animals  hav<^  not  lieen  exposed 

to  any  contagion  within  six  weeks.     As  such  a  certilicato  can  not  be  given  with 

animals  that  have  been  siiipped  from  the  interior  ami  the  liistory  of  which  is  not 

38 


RECIPROCITY   AND   COMMERCIAL   TREATIES. 


39 


known,  this  regulation  practically  prohibits  the  iutrodnctiou  of  our  sheep  i..uo  that 
country. 

A  regiilatiou  has  also  been  recently  nuide  in  Franco  that  nil  canned  ments  piir- 
chiiHcd  lor  army  supplies  shall  l>o  of  Fr(;uch  origin.  Heretofore  these  meats  have 
l)ecn  ])urchase(I  iu  large  (luantity  from  Amorican  i)ackers.  It  is  stated  in  recMit 
press  dispatches  that  an  order  has  heen  made  allowing  the  admiHsion  of  American 
cattle  lo  the  French  markets  on  condition  that  they  are  tested  with  tulierculin.  The 
Department  of  Agricnltnrc  has  no  otlicial  info''>uition  in  regard  to  such  an  order,  hut 
if  it  lias  bean  made  it  is  nnjust  and  unnecessary.  Our  cattle  arc  shipped  to  Frai  e 
only  for  slaughter,  and  if  affected  with  tul'erculosis,  this  disease  could  bo  readily 
detected  by  the  inspectors  at  the  t'ino  the  carcass  is  ''ressed.  A  tuljerculin  test  of 
steers  would  be  a  very  diflicult  and  exiionsivo  process,  and  probably  would  operate 
to  prevent  the  introduction  of  our  cattle. 

Denmark  ar  d  Uelgiuin  have  regulations  ])ractically  ideiitilied  with  those  of  Ger- 
many, as  they  are  made  to  coirespond  with  the  German  regulations,  in  order  that 
their  trade  with  that  (joun'  y  will  not  bo  aife<!ted  by  allowing  the  admission  of 
American  animals  and  meats  wliich  are  excluded  by  Germany. 

The  importation  of  pork  is  entirely  prohibited  by  Russia.  These  are  the  priucii)al 
countries  to  which  American  aninuils  and  meats  are  shipped.  There  are  some  restric- 
tions in  other  countries,  but  the  trade  atfocied  is  so  insignificant  that  the  Agricul- 
tural Department  has  received  no  information  rece'.tly  conceriiiug  them. 

THE  EMBARGO  AGAINST  AMERICAN  HORSES  IN  GERMANY. 

The  latest  assault  by  Germany  upon  the  export  interests  of  the 
United  States  is  a  decree  whicli  practically  i)rohibits  the  importation 
of  horses  into  that  Empire.  It  recpiires  that  before  ho  can  lan'l  a 
horse,  the  importer  must  furnish  the  customs  oflicers  a  detailed  ])cdi- 
gree  of  the  animal  for  at  least  four  generations,  with  a  certihcate  attest- 
injj  its  truth  signed  by  a  Gernnin  consul;  also,  a  certificate  from  a 
German  veterinary  surgeon  that  the  animal  is  sound  and  in  full  liealth. 
Having  obtained  those  two  certilicates,  whidi  will  cost  from  $3  to  $5 
each,  the  importer  must  then  obtain  a  permit  from  the  governor  of  the 
district  in  whtch  the  animal  is  to  be  offered  for  sale.  The  expense  of 
securing  these  certificates  and  permits  will  not  be  less  than  |lO,  and 
none  but  horses  of  fine  blood  and  great  valre  can  therefore  be  imported 
with  profit. 

NO   ACTION   BY   THE   EXECUTIVE   DEPARTMENTS. 

With  the  exception  of  a  modus  vivcndi  that  Avas  negotiated  with 
Sjtain  at  the  retpiest  of  the  milling  inteiests  of  the  conntiy,  iind  by 
which  the  exports  from  the  United  States  lo  S})'iin  and  Puerto  Kico 
have  the  advantage  of  the  second  column  of  the  Spanish  t;irin',  your 
committee  can  not  ascertain  that  any  attempt  has  been  nmde  by  llie 
Executivo  Departments  since  1.S03  to  secure  concessions  from  any  for- 
eign government  in  favor  of  the  produ'its  of  the  United  States,  or  to 
secure  the  abrogation  of  unjust  dis.crimiiiations  against  American  prod- 
ucts by  a  judicious  use  of  the  retaliatory  provision  of  section  o  of  the 
act  of  August  30,  1890,  which  is  as  follows . 

Skc.  .5.  That  whenever  the  PresMlent  shall  be  satisfied  that  unjust  disoriminations 
are  made  by  or  under  the  authority  of  any  foreign  State  against  the  imjiortation  to 
or  salt!  In  such  foreign  State  of  anj  product  of  the  I  iiiited  States,  ho  may  tiirect  that 
such  ])rodu<'ts  of  sucli  Ibreign  State  so  discriminating  against  any  product  of  the 
hiited  States  as  he  may  <leem  ]»roper  shall  be  exclnde<l  frouj  importation  to  thr 
United  States;  and  in  such  case  he  shall  make  procliiiuation  of  his  direetion  in  tll(^ 
l>rt!niises,  and  therein  name  the  time  when  such  direetion  against  importation  shall 
take  effect,  and  after  such  date  the  importation  of  the  .>rticles  named  in  such  i)rocla- 
iiiation  shall  be  unlawful.  The  F'rosident  may  at  anytime  re-,  oke,  modify,  termi- 
nate, or  renew  nny  such  direction  as,  in  his  rvpinion,  the  public  interest  may  require. 

Note. — Portions  of  Senate  Executivo  Document  No.  1.5^  Fifty-fourth  Congress, 
first  session,  which  contains  the  decrees  and  regulations  of  Germany,  Franco,  Bel- 
gium, and  Deuiutrk,  is  printed  as  Appendix  E  to  the  loport. 


vm. 

THE  SITUATIOI^  IE"  CUBA. 


This  country  is  the  natural  and  only  profitable  market  for  Cuban 
sugar,  and  should  furnish  in  return  the  larger  share  of  the  imports  of 
that  colony.  Under  the  reciprocity  arrangement  Cuba  was  very  pros- 
perous. Her  sugar  brought  high  prices  and  there  was  a  very  large 
consumption  in  the  United  States,  while  nearly  all  the  foreign  imports 
were  brought  from  our  ports  at  low  rates  of  duty.  The  sugar  iiulustry 
was  much  enlarged.  New  plantations  were  opened,  new  mills  were 
erected,  new  lines  of  trade  were  established,  and  large  amounts  of  cap- 
ital were  invested  by  citizens  of  the  United  States  as  well  as  Cubans  in 
their  development,  under  the  supposition  that  the  recip  ity  arrange- 
ment which  brought  so  much  prosi)erity  would  be  prrn      out. 

When  it  terminated  everything  wjis  thrown  into  confusion.  Finan- 
cial disaster  threatened  every  man  who  was  engaged  in  industry  or 
commerce.  The  duty  imposed  upon  sugar  by  the  United  States  placed 
every  planter  in  Cuba  at  the  mercy  of  the  sugar  trust,  while  the  cost 
of  every  imported  article,  including  fl(mr,  provisioiis,  and  other  kinds 
of  food,  was  immediately  doubled.  The  incomes  of  the  principal  part 
ot  the  population  were  reduced  50  per  cent  and  the  expense  of  lining 
was  increased  100  per  cent.  In  the  meantime  the  enormous  taxes,  that 
are  imposed  by  Spain  to  maintain  one  army  of  soldiers  and  another 
army  of  diciais,  continued.  The  people  rebelled.  Protests  were  sent 
to  the  Cortes,  and  the  minister  of  the  colonies  at  Madrid  was  ovei'- 
whelmed  with  remonstrances. 

SOME  MODIFICATIONS   IN  'lUE   TARIFF    SBCUEED. 

The  United  States  minister  at  Madrid  arranged  with  the  mii>    '    .  ,/t 
foreign  affairs  a  modus  vivendi  or  temporary  arrangement  unaar     i;.';.'" 
the  Government  applied  to — 

the  products  of  the  United  States  in  tlie  islands  of  Puerto  Kico  and  Cuba  the  dutitis 
of  the  second  column  of  tlie  tarilf  now  in  force  as  long  as  tht  (iovernnient  of  tlio 
Union  concedes  to  the  })rodu<t8  of  said  islands  the  most  favore '-nation  treatment, 
it  being  understood  that  in  no  case  shall  Amorican  products  in  Cuba  and  Puerto 
Rico  or  Spanish  products  in  the  United  States  be  subjected  to  a  ditfereutial  treat- 
ment in  respect  to  those  of  other  countries. 

This  modus  vivendi  shall  remain  in  force  until  the  conclusion  of  a  detiniio  tr(>at- 
ment  between  the  purties  intor<.stnd,  or  until  one  of  them  shall  give  to  the  other 
three  months'  notice  of  the  date  upon  which  it  is  desired  to  terminate  it.       -   > 

EFFECT  OP  RECIPROCITY  IN  CUBA, 

The  reciprocity  agreement  between  this  country  and  Spain,  covering 
the  markets  of  Cuba  and  Puerto  liico,  was  proclaimed   September  1, 
1891.     It  admittctl  flour  at  $1  per  100  kilos,  about  88  cents  per  barrel. 
The  present  tariff  is  $4.16. 
40 


RECIPROCITY   AND   COMMERCIAL   TREATIES. 


41 


As  suggesteo  by  oue  of  the  millers  who  auswexed  the  inquiries  of  the 
committee : 

It  is  well  to  consider  the  growth  of  our  flonr  trade  with  Cuba  and  Puerto  Kico 
dm  in?,'  the  continuance  of  this  agreement,  the  exports  of  which  to  Cuba  for  the  years 
uamed  having  been  as  follows: 

Barrels.  ,  Barrels. 

1891  114,441     1803 61fi.406 

1892.... 366,175  |  1894 6r;,i>48 

Which  shows  a  growth  of  more  than  480  per  cent,  while  our  export  flour  to  Cuba  for 
the  year  ending  June  30, 1895,  the  year  after  the  anuulnientof  our  reciprocity  treaty, 
fell  off  to  379,8r)6  barrels,  a  loss  of  more  than  42  per  cent.  This  increase  of  flour 
trade  with  Cuba  was  not  enjoyed  by  any  other  countries,  as  the  exports  of  flour  to 
Havana,  the  luetropolis  of  that  island,  from  Kuropo  fell  from  86; 519  bags  during  the 
months  of  .January,  February.  March,  and  April,  in  1891.  to  4,268  bags  during  the  same 
months  in  1892.  As  I  understand  it,  these  same  bags  are  figured  at  110  pounds  each. 
Under  this  arrangt  lent  similar  .ndvancemeuts  in  oi^r  flour  trade  with  Puerto  Rico 
were  achieved,  having  been  as  follows : 

Barrels.  I  ^  Barrels. 

1891 127,983    1893 200,053 

1892 162,147  |  1894..   200,813 

Which  shows  a  gain  of  about  60  per  cent,  while  our  flour  export  to  Puerto  Rico  for 
the  year  ending  June  30,  1895,  fell  to  118,617  barrel*-,  or  a  loss  of  about  40  per  cent. 

VALUE  OP  THE  CUBAN  TRADE. 

The  gross  exports  from  Cuba  are  valued  at  about  $100,000,000  per 
year,  three-fourths  of  which  are  sent  to  this  country  and  consumed 
here.  The  gross  imports  into  Cuba  amount  to  $53,000,000  per  year, 
three-eighths  of  which  only  are  produced  in  and  shipped  from  the 
United  States.  Thus  we  furnish  a  market  for  75  per  cent  of  the  exports 
of  Cuba,  and  supply  but  a  minor  part  of  her  imports,  while  England 
and  Spain  enjoy  the  principal  portion  of  that  rrade. 

The  most  striking  statement  we  have  recorded  on  this  subject  is  from 
the  Louisville  and  Nashville  Kailroad  (.kmipany,  as  follows: 

Our  records  show  that,  from  the  establishment  <  f  our  line  of  steamers,  December, 
lMt;i,  from  Piiisiicola,  Fla.,  to  Havana,  Cuba,  until  th(<  withdrawal  of  the  reciprocity 
relations  with  C"ba,  August,  1894,  wo  handled  from  St.  Louis  as  follows: 

Tons. 

Flour  (177,334  sacks) 17,733 

Corn  (218,787  sacks) 24,066 

Oats  (12,498  sacks) 1,  m)0 

Bran  (7,231  sacks) 578 

Hay  (14,909  bales) 800 

Total  (twenty  months) 44, 177 

Since  that  time  to  date  wo  have  handled:  Tons. 

Flour  (43,761  sacks) 4,376 

Hran  (4,894  sacks) ;U)1 

Corn  (4,828  sacks) ,531 

Ilay(9,344  bales) 234 

Total  (nineteen  months) 6,532 

The  manager  of  the  New  York  and  Cuba  Mail  Steamship  Company, 
Now  York  City,  writes  to  the  committee  as  follows: 

With  the  abrogation  of  the  reciprocity  treaty  between  the  \Tnited  States  and 
Cnl;a,  imports  irom  this  country  have  been  nuide  subject  to  the  highest  rates  of 
duty.  This  has  taken  away  our  trade  in  railroad  i-ou,  cars,  locomotives,  machinery, 
etc.,  anil  has  almost  killed  (lie  trade,  in  flour,  provi.si(uis,  aiul  produce. 

The  rcduetion  of  duties  on  ]»rovi8ions,  eerealH,  and  ])r<>diico  would  restore  the  trade 
to  Mie  United  States.  In  Hour  alone  our  trade  v onld  increase  .^(M)  per  cent.  On 
othur  products  the  vuluiuu  of  trittUo  would  be  luauy  times  greater  than  it  now  is. 


42 


RECIPROCITY   AND    COMMERCIAL   TREATIES. 


The  volume  of  bnsiuosB  was  inoni  than  doubled  under  reciprocity  arrangements. 
The  Statistit'Jil  IJureau  of  the  'Ireasiiry  Dcpai'tmcnt  will  confirm  this  statement,  ami 
also  demonstrate  how  the  busiiicss  has  since  I'alleii  oil',  but  it  can  not  show  to  wliat 
extent  our  trade  with  (Juba  would  have  increased  had  the  inHnence  of  reciprocity 
continued  a  few  years  longer. 

The  reciprocity  enabhid  us  to  double  oiii-  tonnagivcarrying  ca])acity  to  Cuba,  and 
yet  carry  full  cargoes.  Its  al)rogation  left  us  with  the  increased  tonnage  capacity, 
but  with  less  than  half  cargoes. 

Tj.  >.  total  exports  of  merchandise  from  the  Uuited  States  to  Cuba 
during  1891,  the  year  before  the  aj?roement  was  negotiated,  were 
$12,224,888;  in  181)2  they  were  *17,i)o;3,57(>;  in  1893,  $24,157,698;  in 
1894,  $20,125,321;  but  in  1895,  after  the  repeal  of  the  reciprocity  agree- 
ment, they  fell  again  to  $12,887,001. 


IX. 


PRESENT  COI^DITIOIsr   OF  OUR  EXPORT 

TRADE. 


The  tendency  of  tariff  legislation  by  tlie  Congress  of  the  United 
States  since  the  war  has  been  toward  a  rednction  of  (uistonis  duties 
and  the  enlargement  of  the  free  list,  wliile  most  of  the  nations  which 
compete  with  us  for  the  world's  markets  are  adopting  and  extending 
the  lu'otective  policy  that  is  responsible  for  the  i)rogressand  prosperity 
of  this  liepublic,  and  in  several  cases  the  removal  of  import  duties  by 
the  United  States  has  been  followed  by  the  imposition  of  export  duties 
upon  the  same  articles  by  the  nations  from  which  they  crome.  We  have 
been  gradually  tearing  down  the  wall  that  defended  our  industries 
against  the  invasnm  of  foreign  competitors,  while  they  are  erecting 
barriers  to  keei)  our  i)roducts  from  their  consumers.  The  restrictions 
placed  ui)on  our  farm  produce,  particmlarlycattk^,  i)ork,  and  other  pro- 
visions, by  the  European  Governments,  liave  grown  more  and  more 
severe,  and  have  usually  been  without  other  Justification  than  the 
desire  to  protect  their  own  producers  against  the  competition  of  our 
farmers. 

THE  COMMERCIAL   POLICY  OF  OTHER  NATIONS. 

Nefirly  all  the  nations  of  the  earth  are  increasing  their  rates  of  tarifF, 
botli  for  the  protection  of  domestic  industries  and  for  revenue  to  suj)- 
port  their  vast  armies  and  pay  interest  upon  their  enormous  debts;  an-* 
only  recently  Mr.  Chamberlain,  the  colonial  secretary  of  Great  Britain, 
the  last  nation  to  adhere  to  the  doctrine  of  free  trade,  advocated  an 
abandonment  of  the  traditional  i>olicy  of  that  Government. 

In  a  s])ee('h  before  the  Canadian  Club  of  London,  on  the  28th  of 
Maich,  he  proposed  an  Imjx'rial  Zollverein,  based  upon  free  trade 
within  and  a  tariff  for  protection  without  the  British  l'jmi)ire.  His 
l)hin.in  other  words,  is  a  free  intercliaJige  of  commerce  between  the 
United  Kingdom  and  its  colonies,  and  the  imposition  of  duties  uixm 
imports  from  foreign  countries.  Canada,  for  example,  in  return  for  the 
free  entry  of  nnuiufactnred  merchandise  from  the  mother  country, 
would  be  entitled  to  the  free  entiy  of  lier  corn,  wheat,  ba:'ley.  Hour, 
hops,  cattle,  provisions,  lumber,  and  other  products  into  British  and 
other  colonial  ports,  while  similar  articles  from  the  Uiuted  States,  Kus- 
sia,  Austria,  and  the  Argentine  Kepublic  would  have  to  pay  duty. 
Cane  sugar  from  Jamaica,  liarbados,  and  Trinidad  would  enjoy  a 
sinnlar  advantage  over  that  from  the  other  West  ami  East  Indies,  and 
the  l)eet  root  product  of  Germany  and  France.  Wool  from  Australia 
and  theAfrican  colonies  would  be  admitted  free,  while  that  from  Tur- 


■  flwfc 


RECIPROCITY   AND   COMMERCIAL   TREATIES. 


key  and  the  Argentine  Republic  would  be  taxed;  and  there  would  be 
a  discrimination  against  the  cotton  of  tlie  United  States  and  Egypt  in 
favor  of  that  from  India.  In  short,  his  Zollverein  would  ylace  the 
colonies  of  the  British  Empire  upon  the  same  commercial  relations  as 
those  existing  between  our  States,  coupled  with  tariff  protection  against 
foreign  competitors. 

While  it  is  not  probable  that  the  suggestions  of  Mr.  Chamberlain  will 
find  sufficient  favor  to  be  framed  into  law  during  the  present  year,  his 
abrupt  and  radical  departure  from  the  established  policy  of  his  Govern- 
ment is  a  striking  evidence  of  the  growth  of  the  protection  sentiment 
in  Gieat  Britain,  as  well  as  an  acknowledgment  of  the  wisdom  and 
justice  of  the  measures  that  have  made  this  nation  great. 

THE  FOREIGN  COMMERCE  OF  THE  WORLD. 

Tlie  following  figures,  compiled  from  the  latest  and  most  reliable  data 
a\'aihible,  show  the  total  foreign  commerce  in  merchandise  of  some  of 
the  i)rincipal  countries,  the  values  being  reduced  to  United  States  cur- 
rency on  the  basis  of  the  official  valuation  of  foreign  coins  issued  by  the 
Director  of  the  Mint,  October  1, 1895: 


Country. 

Tear. 

Value. 

TJnited  Kingdom  ....•...•.•......•.•.•••..•••••.........••.... 

1895 
1895 
1894 
1894-95 
1894 
1894 
1894 
1895 
1894 

$3,415,741,975 

Germany 

1,700,8H:!,  120 

Krjinc*^ 

1,  694,  800,  000 

United  States  ....... ...,. 

1,  589,  508,  lUO 

Hetherlanda ....-- ■ 

1,  030.  400,  000 

I?el""ium 

973, -jr)  1,040 

KuHBia 

957,  915,  420 

India 

544,  074, 995 

Italy 

424,231,028 

The  following  statement  shows  the  imports  and  exports  of  merchan- 
dise of  the  nations  named  per  capita  of  population: 


Countay. 

Tear. 

Value. 

Straits  SetUements 

1894 
1894 
1894 
1894 
1894 
1894 
1895 
1894 
1805 
1894-95 
1804 
1894 
1805 

$396.46 
■'35  79 

Falkland  Ifllniids 

Kctherlan  da 

214  86 

South  AuBlralia 

191  34 

HelpiuTii 

154  48 

(^ueciislaiid 

143.  38 
87  28 

T'nited  Kiiigilora 

France 

44  02 

(ierninnv , 

34.02 
23  68 

T'nited  ^itates 

Italy 

13. 73 
7.39 
2.41 

KtiHsia 

India 

THE  PROPORTION  OF  MANUFACTURED  GOODS  EXPORTED. 

Although  they  have  not  kept  pace  with  other  features  of  our  natl-mal 
developmeiit,  the  exports  of  natural  i)roducts,  such  as  come  from  the 
farms,  for  sts,  fisheries,  and  mines  of  this  country,  have  increased  in 
late  years  to  a  gratifying  degree.  But  our  exports  of  manufactured 
goods  seem  trilling  when  the  annual  returns  are  placed  beside  the 
figures  that  express  the  output  of  our  factories  and  their  enlarged 


RECIPBOCITY    AND   COMMERCIAL   TREATIES. 


45 


e  would  be 
1  Egypt  in 
.  ^]ace  the 
'elation a  as 
ion  against 

berlain  will 
it  year,  hia 
iiis  Govern - 
1  aentiment 
risdom  and 


eliable  data 
I  of  some  of 
States  cur- 
sued  by  the 


Value. 


$3,415,741,975 

l,7(iO,  8H:1,  120 

1, 694,  KOO.  000 

1,539,  5UH,l:!0 

1, 0;iU.  400,  000 

973,251,040 

957,  915,  4-jn 

544,074,995 

424,  231, 028 


)f  merclian- 


ear. 

Value. 

804 

$396. 46 

894 

235.  79 

8".>4 

214.86 

894 

191.34 

H94 

154.  48 

HSU 

143.  38 

895 

87.28 

S94 

44.02 

895 

34.02 

11-95 

23.  6« 

804 

13.  73 

894 

7.39 

895 

2.41 

RTED. 

ur  nati'>nal 
ne  from  the 
icreased  in 
nufjictured 
beside  the 
ir  enlarged 


capacity  for  production.  Nor  has  this  class  of  exports  increased  so 
rapidly  as  our  imports  of  similar  merchandise  from  foreign  countries, 
'riie  following  tab.'e  shows  the  value  of  the  product  of  the  twenty-two 
liiigest  manufacturing  industries  in  the  United  States  as  given  by  the 
last  census,  18!>0-91,  compared  with  the  exports  of  the  same  classes  of 
articles  for  the  same  year: 


InduHtries. 


Iron  and  Ptecl 

yoiimlrics  uiid  inacliine  shoim... 
Slaiif;lit(  riuj;  and  meat  paikiiig 
Flourinjj  mills 

BttkiTii't 


Lumber  and  sawniilla 

Ciiri)t'nt<'''i"g 

Planing  inill» 

Cotton  goods 

Men's  clothing  (Ciiotorios) 

Men's  elothing  (cu.stoni  nmdo). 

Woolen  goods 

li<iot8  and  shoes 

Taniiei'ies 

Masonry" 

Breweries 

Printing 

Car  8hoi<8 

Carriages  and  wagons 

Cigars  and  cigarettes 

Sugar  and  molasses 

Distilleries 


I'roduced  in  tho 

United  States 

census  year 

1890. 


$563, 
41'2, 
501. 
513. 
128, 
403, 
281, 
183, 
207, 
251, 
120, 
133, 
220, 
13K, 
190, 
182, 
179, 
129, 
114, 
129, 
123, 
104, 


954, 
701, 
611, 
971, 
421, 
007, 
195, 
081. 
981, 
019, 
219, 
577, 
049, 
282, 
704, 
731, 
859, 
401, 
570, 
693, 
118, 
197, 


348 
872 
668 
474 
.535 
575 
162 
5.52 
724 
009 
',51 
977 
3,58 
004 
818 
022 
750 
693 
555 
275 
2,59 
869 


Exported  from 

the  United 

States  fiscal 

year  1890-81. 


$28, 909, 614 
139,681,730 
128, 121,  656 

26, 270,  040 

13,  604,  857 

558, 621 

C51,;!43 

12,  6-27,  504 

1,040,122 

672,  243 

1,  820,  470 

2,  885,  2.50 
2,  01.5,  870 
1,107,013 
6,918,287 
1,  887,  431 


Percentago 
ol'  product 
exportwl. 


0.020 
.241 
.199 

.03 

.051 

.001 

.003 
.091 
.005 
.  003 
.011 
.022 
.017 
.009 
.056 
.018 


Total 5,341,272,850 


368,  778, 051 


.009 


OUR  COMMERCE  WITH  LATIN  AMERICA. 

Last  year  we  bought  $246,082,802  worth  of  the  products  of  our 
neighbors  in  the  other  American  Republics  and  colonies,  and  admitted 
nearly  92  per  cent  of  it  free  of  duty.  During  the  same  year  we  sold 
them  merchandise  to  the  value  of  $143,101,000,  e  ^ery  ounce  of  which 
was  taxed  from  5  to  100  per  cent  upon  its  value  in. their  custom-houses. 
The  $103,000,000  which  rejiresents  the  balance  of  trade  in  their  favor 
was  paid  for  in  cash — in  gold,  or  in  bills  of  exchange  on  London  which 
are  equivalent. 

After  the  close  of  the  war  we  began  to  reduce  duties.  The  duties  on 
hid"s  was  removed,  and  rubber  was  admitted  free.  In  1872  the  duty 
on  cott'ee  was  reduced  to  3  cents  a  pound,  and  in  1873  it  was  taken 
off  altogether.  As  a  result,  affected,  of  course,  by  the  growth  of  popu- 
lation, the  value  of  coffee  consumed  in  the  United  States  increased 
from  $22,860,000  in  1873  to  $50,784,391  in  1880,  to  $78,207,432  in  1890, 
and  to  $95,087,161  in  1895.  During  the  year  1892  the  total  imports 
reached  the  enormous  value  of  $12v/,801,607. 

The  greater  portion  of  our  supply  came  from  Brazil,  which  is  the 
largest  and  most  populous  of  the  South  American  countries,  and  fur- 
nishes the  most  striking  and  significant  example  of  our  commercial 
folly.  It  stands  next  to  the  United  States  in  population,  having 
between  thirteen  and  fourteen  millions  of  people,  and  a  geographical 
area  greater  than  that  of  the  United  States,  not  inclutling  Alaska. 
The  total  foreign  trade  of  Brazil  averages  annually  about  $250,000,000, 
being  very  nearly  divided  be  uween  exports  and  imports.  Of  the  exi)ort 
trade  the  United  States  has  the  largest  share,  taking  more  than  halt 
the  total  in  the  form  of  coffee,  sugar,  hides,  and  rubber,  while  the 


RECIPROCITY    AND   COMMERCIAL   TREATIES. 


remainder  is  divided  amonjj  the  Euroi)ean  corintries.  Of  th'  irqport 
trade  Kiiyland  eiijoys  about  ono-linir,  while  the  rest  is  divided  among 
FraiK'e,  Germany,  Spain,  Jielginm,  Italy,  and  the  irnited  Stat*  ^ 

England  buys  annnally  fr  mii  JJrazil  only  about  $5,()00,0()()  worth  of 
merchandise  and  sells  her  about  $4(),()()0,0(M),  while  the  United  States 
buys  nearly  $80,(K)0,()(H)  and  sells  her  about  $15,(UH),0()(»  of  our  products. 

OUR  THENOMENAL  TRADE  WITH  BRAZIL. 

During  the  last  thirty  years  the  United  States  lias  imported  more 
than  $l,r)()0,()(M),0()()  worth  of  raw  materials  from  IJra/il,  and  has  sold 
her  only  about  $2r)(),00(),000  worth  of  merchandise,  which  has  compelled 
us  to  pay  the  enormous  sum  of  $1,250,000,000  in  gold  or  its  equivalent 
to  settle  the  balance  of  trade,  and  nearly  every  cent  of  it  has  gone  into 
the  pockets  of  European  merchants  and  numufacturers.  The  exchange 
alone  charged  by  the  London  bankers  on  this  business,  usually  three- 
fourths  of  J  i)er  cent,  often  reaches  the  enormous  sum  of  half  a  million 
dollars  for  a  single  year,  and  has  aggregated  at  least  $10,000,(MK)  for 
the  thirty  years.  At  the  rate  of  $10  a  ton  we  have  i)aid  during  the 
same  period  for  transportation  at  least  $30,000,000  to  owners  of  English 
ships. 

Our  imjiorts  from  Brazil,  following  the  removal  of  duties  by  the  United 
States  from  her  chief  products,  increased  from  80,000,000  in  1850  to  $!il,- 
000,000  in  18(50,  $25,000,000  in  1870,  $52,000,000  in  1880,  $60,000,000  in 
1800,  $70,000,000  in  1895,  while  in  1802,  under  reciprocity,  they  reached 
$118,000,00(). 

In  1860  we  sold  Brazil  about  $6,000,000  worth  of  merchandise;  in 
1880  the  total  rose  to  $8,000,000;  in  1890  to  $11,000,000,  and  in  1895  to 
$15,000,000. 

Since  18.^0,  that  is  within  the  last  fifteen  years,  we  have  purchased 
from  Brazil  raw  products  amounting  to  $898,143,94();  we  have  vsold  her 
manufactured  pierchandise  amounting  to  $167,286,099,  and  we  have 
paid  the  bala,'  'e,  $731,907,897,  in  gold  or  its  equivalent,  which  money 
was  exjjended  in  Europe  for  merchandise  we  (.ould  have  supplied  ju«t 
as  well. 

During  this  time  the  exports  from  England  to  Brazil  increased  from 
$18,000,000  to  $54,000,000. 


f 


1 


I 

I 


OUR  EXPORTS  TAXED,  OUR  IMPORTS  FROM  BRAZIL  FREE. 

Every  ounce  of  merchandise  that  is  shipped  from  the  United  States 
to  Brazil  pays  duty  before  it  is  admitted  to  lier  p(U'ts.  Of  the  [)roducts 
of  Brazil  that  are  exported  to  the  United  States  almost  everything 
comes  in  free.  In  1894,  for  example,  our  imports  from  Brazil  amounted 
to  $79,360,159,  of  which  duties  were  paid  upon  only  $64,499. 

In  18i  0  (mr  imports  from  the  Latin-American  countries  were  valued 
at  $79,000,000.  In  1890  they  were  valued  at  nearly  $200,000,000.  In 
1895  they  reached  $208,243,791. 

In  1 860  onr  exports  to  Latin  America  were  $44,000,000.  In  1890  they 
were  $87,000,00(».  In  1893,  when  the  reciprocity  policy  was  in  full  oper- 
ation, they  reached  $103,413,075;  but  after  it  was  repealed,  in  1895,  they 
dropped  to  $87,949,564.  ' 

In  1860  the  imports  of  Englaiul  from  Latin  America  were  nearly 
$102,000,000.  In  1894  they  were  about  the  same.  ITer  exports,  how- 
ever, during  those  years,  jumped  from  $87,000,000  to  $174,000,000,  and 
tbos<)  of  Fiance  and  Germany  increased  in  a  corresponding  ratio. 


RECIPROCITY    AND   COMMERCIAL   TREATIES. 


47 


The  pxi)oits  from  Kiifiland  to  Latin  America  consist  of  cotton  ^ocxls 
and  other  wearing  apparel,  driij-x  and  medicines,  machinery  and  imple- 
ments, boots  and  shoes,  and  other  ajticles  of  leather,  hardware,  rail- 
way sui)])lies,  and  other  articles  of  iron  and  steel,  and  all  the  various 
forms  of  manufactured  merchan<lise  that  enter  into  the  wants  of  men. 
The  almost  uniform  testimony  of  the  merchants  and  manufacturers 
who  have  replied  to  the  inquiries  sent  out  by  this  committee  is  that  the 
advantaj'es  enjoyed  by  their  competitors  in  cheaper  labor,  in  conven- 
ient banking  facilities,  and  in  regular  lines  of  transportation  are  almost 
insurmountable  obstacles  to  the  extension  of  their  trade.  While  the 
reciprocity  arrangement  was  in  operation  in  Brazil  the  privilog«'s  it 
gave  to  merchanclise  from  the  United  States  weie  an  almost  <'(miplete 
offset  to  the  advantages  their  Eurojiean  rivals  had  enjoyed,  and  if  they 
had  been  allowed  to  remain  undisturbed,  our  manufacturers  and  mer- 
chants might  have  obtained  a  fiiir  share  of  the  trade. 


eased  from 


RECIPROCITY   THE   GOLDEN   RULE   OF   COMMERCE. 

The  reciprocity  plan,  which  is  intended  to  apply  to  such  cases  should 
be  recognized  as  a  commercial  transaction ;  as  a  simple,  wise  i»roi)08i- 
tion  siicli  as  every  merchant  and  manufacturer  emi)loys  in  the  conduct 
of  his  business;  based  upon  ordinary  common  sense,  but  so  far-ir'aching 
in  its  iiilluence  that  if  it  could  have  been  carried  out  without  interrup- 
tion its  effect  would  liave  been  felt  in  the  income  of  every  farmer,  in 
the  profits  of  every  merchant,  and  in  the  wages  of  every  mechanic  and 
laborer  in  this  land. 

Reciprocity  was  an  endeavor  to  apply  the  golden  rule  to  commerce; 
to  i)ersuade  our  neighbors  to  make  concessions  in  favor  of  our  products 
ill  return  for  concessions  we  have  already  made  in  favor  of  theirs;  to 
secure  for  the  farmer  and  manufacturer  of  the  United  States  advantages 
that  their  rivals  in  other  countries  may  not  enjoy,  and  to  iiuirease  the 
j)urchasing  power  of  the  consumers  in  the  other  American  nations  by 
reducing  the  cost  of  certain  merchandise  of  whidi  they,  by  icason  of 
the  high  duties  im])osed  upon  it,  are  in  a  great  measure  deprived. 

It  rciiuires  no  argument  to  demonstrate  that  the  people  of  Cuba  will 
consume  more  flour  if  the  duty  on  that  article  is  reduced  from  $5.78  to 
88  cents  a  barrel,  or  that  t  ')e  ])eople  of  Brazil,  since  they  produce  no  other 
food  ])roducts,  will  buy  their  supplies  in  the  United  States  if  they  can 
import  them  from  this  country  at  a  duty  of  25  per  cent  less  than  they 
nuist  pay  on  the  same  articles  whea  imported  from  Euro])e.  And  when 
one  considers  that  the  value  of  cotton  goods  imjiorted  into  the  Latin- 
American  countries  annually  reaches  beyond  a  hundred  million  dollars, 
it  is  a  waste  of  time  to  discuss  the  advantage  of  secuiring  such  a 
concession. 

The  annual  imports  of  the  Latin-American  countries  average 
$(!()(),()(>(),()0(),  and  of  these  we  have  usually  furnished  about  1")  percent. 
The  annual  exports  of  the  Latin-American  countries  average  about 
$(tO(),()00,00(),  and  we  have  usually  purchased  about  30  per  cent,  in 
their  commerce  with  Great  Britain  these  conditions  are  reversed. 


FREE  IMPORTS  INTO  THE  UNITED  STATES. 


The  icturns  of  the  Bureau  of  Statistics  show  that  nearly  one-half  of 
the  merchandise  imported  into  the  United  States  during  the  fiscal  year 
IS!);-)  was  admitted  free  of  duty,  the  exact  amount  being  $;J(5;?,2.'53,705. 
The  value  of  imports  upon  which  duty  was  collected  was  $308,736,170. 


48 


RECIPROCITY    AND    COMMEKCIAL   TRl.ATIES. 


The  following  table  will  show  the  cliaracter  of  these  free  imports,  the 
value  of  each,  and  the  source  from  which  they  came : 


Articles. 


Value. 


Whence  imported. 


Auimala 

AH|ili!iltiim 

liAflH  for  grain 

ISanannH 

Other  fruits 

liurlaps 

Cabinet  woods 

Ctieinicala,  drugs,  aud  dyoa. . 

\j  OCOft  •  •  >•••••••■*■■•••■•••■■■ 

Coffee 

Copper  ores  and  bars 

Cork  woods 

Cot  toil,  raw 

Dyowoods 

Fertilizers 

Fibers 

Fiwli,  fresh 

Furs 

Gums 

Hair 

Hides  and  skins 


India  rubber  and  gutta- 
percha. 
Indigo 


Licorice  root 

Linif,  chloride  of. 
Luniljer 


Material  for  hats  and  bon- 

111^8. 

Maltinc 


Mineral  ores,  except  lead  ore. 
Oils 


Opium,  crude 

Potasli 

Kags  and  otlier  paper  stock  . 

Salt 


♦2, 737, 078 
26H,  956 

1,  uo,4o:i 

4,  674,  861 

73;t,  989 

4,  903, 182 

1,  245,  203 

2, 774, 498 

3, 195, 811 

95,  08'/,x61 

.190,  430 
1,049,  0711 
4,  81I,3H;i 
1,  5S'.),  773 
1,  092,  449 

11, 160,  000 


1, 107,  449 
3,  320,  053 

5, 560, 322 

1, 165, 944 

25, 962, 822 

18, 475, 382 

2.  015, 976 

1,  404,  503 

1,644  835 

11,149,951 

2. 755, 450 

1,  638,  838 

1,  776,  336 

3,  280, 078 

730,  660 

2,  853,  012 
5,  230,  324 

561,490 


Seeds 1,330, 105 

Silk,  raw 22, 6:v,,  O.-iO 

Soda,  nitrate  of !  4, 124, 7 1 2 

Spices !  2  368,012 

Sulphur  and  brimstone 1, 700, 784 

Tea 13,171,379 

Tin I    5,713,300 

I 

Vanilla  beans 4, 732, 142 

Wood,  and  niauiifacturos  of . . '    1, 202,  606 
Wool ;  23,990,224 


Canada,  Mexico,  Germany,  Groat  Britain. 

British  West  Indies,  Venezuela,  Grniiany,  Italy. 

British  East  Indies,  Groat  Britain. 

British  AVost  Indit  .•(,  Cuba,  Central  America,  Colombia. 

Cuba,  Central  America,  t'olonil)ia. 

Great  Britain,  British  ICast  Indies. 

Cuba,  Santo  Domingo,  Mexico,  Nicaragua,  Brazil,  Colombia, 
Great  Britain. 

Central  and  South  America,  Germany,  Great  Britain, 
Franco,  Italy,  Spain,  Switzerland,  Turkey  in  Asia. 

British  West  Indies,  Ilaiti,  Central  AmtM-ica,  Brazil,  Dutch 
Guiana,  Ecuador,  Venezuela,  Great  Britain. 

Brazil,  Colombia,  Venezuela,  Central  America,  Mexico, 
West  Indies,  Dutch  East  Indies,  Ketherlands. 

Canada,  Cuba,  Mexico,  Germany,  Great  Britain. 

Great  Britain,  Portugal,  Spain. 

Teru,  Great  Britain,  Turkey  in  Africa. 

Britisli  West  Indies,  Cuba,  Haiti,  Santo  Domingo,  Mexico. 

Canada,  British  West  Indien,  French  Guiana,  Mexico,  Bel- 
gium, Germany,  Great  Britain,  French  Oceanica. 

Canada,  Mexico,  Austria-Hungary,  Belgium,  Germany, 
Great  Britain,  France,  Italy,  Netherlands,  Russia,  Brit- 
ish East  Indies,  Pliilippine  Islands. 

Canada,  Newfoundland,  Cliina. 

Canada,  Argentine  Kepnblic,  Belgium,  France,  Germany, 
Great  Britain,  Russia. 

Mexico,  Austria-Hungary,  Great  Britain,  Turkey  in  Africa, 
British  East  Indies,  British  Australasia. 

Argentine  Republic,  Brazil,  Uruguay,  Germany,  Great 
Britain. 

Canada,  Central  America,  Mexico,  Argentine  Republic, 
Brazil,  Colombia,  Uruguay,  Venezuela,  Santo  Domingo, 
Belgium,  France,  Germany,  Gre.it  Britain,  Rus.-tia,  Tur- 
key in  Europe,  British  East  Indies. 

Brazil,  Central  America,  Coloml)ia,  Ecuador,  Belgium,  Ger- 
many, Great  Britain,  Portugal,  British  East  Indices. 

France,  Germany,  Gre.it  Britain,  Netherlands.  British  East 
Indie.s. 

Turkey  in  Asia,  Russia 

Belgium,  France,  Germany,  Great  Britain. 

Canada,  Cuba,  Colombia,  Mexico,  Austria-Hungary,  Ger- 
many, British  East  Indies. 

France,  Germany,  Great  Britain,  Italy,  Switzerland,  China. 

China,  Hongkong,  .Tapan. 

Canada,  Newfoundland  and  Labrador,  Chile,  Russia.  Spain, 

Turkey  in  Asia,  Japan. 
France,  Germany,  Italy,  Turkey  in  Europe,  British  East 

Indies. 
Germany,  Turkey  in  Africa,  Turkey  in  Asia. 
Belgium,  Germ»ny,  Great  Britain. 
Caiuida,  Belgium,  France,  Germany,  Great  Britain,  Italy, 

Netherlands,  Turkey,  J.ipan. 
British  West  Indies,  Dutou  West  Indies,  Great  Britain, 

Italy. 
Canada,  France,  Germany,  Gre.it  Britain,  IliUy. 
France,  Great  Britain,  Italy,  China,  Japan. 
Cliile,  Peru. 

Britisli  West  Indies,  France,  Germany,  Netherlands,  Brit- 
ish East  Indies. 
Great  Britain,  Italy.  Japan. 
Canada,  Great  Britain,  Cliina,  Japan. 
Germany,    Great   Britain,   British    East   Indies,   British 

Australasia. 
Mexico,  French  West  Indies,  France,  French  Oceanica. 
Canada,  Mexico. 
Canada,  Argentine  Republic,  Uruguay,  Belgium,  France, 

Germany,   Great  Britain,   Russia,   Turkey  in  Europe, 

British  Australasia,  China. 


RKCIPIiOCITY    AND    CO.MMKKCIAL    TREATIES. 


49 


STATEMENT   OF  THE   HALANCE  OF  TRADE. 

Tlio  following'  tal)le  shows  tlio  countries  fioni  wliioh  onr  avorajje 
iiiiimal  .inport.s  ani  in  excess  of  our  avera<i;e  aiMiual  exports,  witli  tlie 
])er(U'iitay:e  of  iini)orta  admitted  free  during  the  tiseal  year  l<S!)r).  The 
figures  are  not  exact,  but  api)roxiniate  tlie  average  value  of  inj^)ort8 
and  exports  for  tlie  hist  ten  years. 


Conntrios. 


Eiiropo: 

Austria-TIuugary... 

J''niiic(i 

(icriiuiny 

Ilnly 

Swiizorlaiul 

Turkoy 

Xdiili  ATiierif'a: 

Mexico 

Ceiiliiil  Aniprira: 

('cistn  Kica 

(iiNiti'iiiala 

lloiiduraH 

N  loiiiiigua 

Siilvador 

AVist  liidica: 

llritisli 

Cuba 

I'ucrlo  Kii^ii 

S.iiilo  Domingo 

Sdui  Ii  Ainerica: 

Aii;oiitiue  Kepublic 

I'.razil 

Cliile 

('oloiiibia 

Kciiador 

Guiana — IJritish 

Dutch 

Uruguay 

Veuezutda 

Asia: 

Cliina 

.Ia|i:ni 

'I'lii  li<"y , 

KiiHt  Indit'.s: 

itrilish 

Dutch , 

I'hili|ipiMi>  Inhiuds 

Africa,  Turkey  in , 

Total 


I'prcB.;*age 

of  inipoi  .'^ 

Exports  t*— 

Imports 
from— 

Excess  of 
imports. 

adinitlt'd 

free  during 

tiseal  year 

1895. 

$1,000,000 

$8.  r>ot).  ono 

$7,  500,  000 

20.50 

60,  000,  000 

70,  000,  000 

10,  000,  0(tO 

20.  37 

02,0011,000 

95, 000,  000 

3,  000,  000 

10.  67 

14,  OOil.  000 

20,  000.  0011 

0,  000,  000 

47.80 

10,0'JO,  000 

14,000,000 

3,  980, 000 

6.  25 

50,  000 

2,  000,  000 

1,950,000 

64.91 

15, 000, 000 

28,  000,  000 

13,  000,  000 

82.56 

1, 000,  000 

2,  500,  000 

1,. WO,  000 

90.99 

2, 000,  ooc 

2,  iJOO,  000 

500,  000 

99.  70 

nno,  000 

"  750,  000 

200,  000 

94.  09 

1,00(I,0')0 

1,000,00. 

fiOO,  000 

98.  39 

1, 150,  OUO 

3,  000, 000 

1,  850,  000 

99.  00 

0,  000,  000 

14,000.000 

5,  000,  000 

69.83 

15,  000,  000 

75, 000,  000 

CO,  000,  000 

33.  45 

2,  500,  OtIO 

3,  250,  000 

750,  000 

24.  90 

1,  250,  000 

2, 600,  000 

1,2.50,000 

31.55 

4,  .lOO,  000 

5, 500, 000 

1,000,000 

89.07 

14,  000,  000 

80,  000,  000 

«(i,  000,  000 

97.78 

3,  000,  000 

3,  750,  000 

750,  000 

99  03 

2,  750,  000 

3,  750,  000 

1,000.000 

90.  59 

7.50,  (100 

850,  000 

100,000 

90.  15 

2,  (MJO,  000 

4,  .500,  000 

2,  .500,  000 

19.  29 

:i,"jO,  (mio 

750,  000 

400.  Olio 

84.  .54 

1,  000,  000 

2,  000,  000 

1,000,000 

80.  20 

4,  000,  OUO 

10,  000,  000 

6,  000,  000 

90.  44 

4,  500,  000 

20,  500,  000 

10,  000,  000 

82.  56 

4,  000,  000 

25,  000,  000 

21,000,000 

71.  .55 

i;!0, 000 

3,  O'H),  000 

2, 870, 000 

67.  24 

3,  500, 000 

2a  000,  000 

18,  .500.  000 

75.  63 

1,  250,  000 

8, 000,  000 

6,  750,  000 

20.  20 

119,000 

8, 000,  000 

7,881,000 

77.  32 

150,  000 

3,  000,  000 

2,  850,  000 

92.40 

261,  519,  000 

543,  200,  000 

281,681,000 

67.71 

H.  Kep.  22C3- 


lerlands,  Brit- 


r>o 


RECIPROCITY    AND    COMMKRCIAI.    TREATIES. 


THE    EKEE   LIST   OF   THE   UNITED   STATES. 

The  following;  :ire  the  principal  articles  that  now  api>ear  npon  tiie 
free  list  of  the  IJnIted  States,  with  the  rate  of  <luty  hist  imposed  upon 
them,  tlio  (hite  upon  which  It  was  imposed,  and  the  date  upon  which  it 
was  removed: 


Articles. 


Asplmltuni 

(Jlu'inicali*,  (Iniga,  niul  dyi^s: 

Or^iil  <ir  ur;;ol,  or  crude  tartar 

Cinchona  l)Hrl<  anil  rxtrnctrt  ul° 

Quinine,  Huliiliate  of 

(>t.)ierHalU  of  i|uiniiu) 

Dye  woods  iu  crudo  Htato 

Indigo 

()|ii uni,  crudo , 

I'otaHli : 

Cli lorato  of , 

Muriate  of 

Nitruto  of 

Sulpliatu  of 

Soda,  nitrate  of.   

Sulpiiur,  crude 

(.'ocoa , 

( .'otl'oe 

Copper: 

Oro 

Regulus 

Platofl,  l)ar.s,  etc 

Fnrtilisiers: 

Ouano , 

l'lu)Hidiate8,  crude 

Fibers: 

Istle  or  Tanipico  liber 

Jute 

Juto  Ixitts 

Manila 

Sis.il  grass 

Fish : 

Lobsters,  canned  orotliorwiso 

Fruits  and  nuts: 

Bananas , 

Olives , 

Pine  apidos 

AUotliergreeu,  ripe,  etc.,  n.  e.  s 

Cocoanuts 

Cream  and  Brazil  nuts 

Hats,  bonnets,  etc. : 

Materials  for ;  braids,  plaits,  etc 

Uldes  and  skins : 

Goat  skins , 

Hides,  dry  salted  or  pickU^d , 

India  rubber  and  guttapenh.a: 

(}utta-l)erclia,  crude , 

India  rul)ber,  crude , 

.Manganese  ore,  and  oxide  of 

Mattings  for  floors , 

Nickel  ore  and  matte 

Oils: 

Cocoanut , 

Nut  oil 

Olive,  for  manufacturing  purpo.ses  . 

Aniline , 

Uergamot , 

Cas.sia  and  cinnamon , 

CitronoUa , 

Lemon , 

Koseb,  attar  of 

Paper  stock : 

Rags,  other  than  wool , 

Waste  and  other  paper  materials.. 

In  bulk 

Salt,  in  bags,  sacks,  etc 

Silk,  raw,  or  as  reeled  from  the  cocoons 
Spices; 

Cassia  and  casaiavera 

Cloves 


Dutiable  under— 


Act  of— 


Juno   30, 1801 

July    14,1862 

do 

June     0,1872 

do 

July  30, 1840 
Mar.  3, 1857 
July     14, 1870 

June  6, 1872 
Uncnumeratiid 
June  6,  1872 
3,  1883 
3,  1857 
June  30,1864 
July     14, 1870 


Mar. 
Mar, 


.do. 


Oct.        1, 1890 

do 

do 


Uneiiumerate<l 
do 


June  30,  1804 
Mar.     3,  1803 

do 

Aug.  6,  1801 
July    14,  1862 

Unenumorated 

July  14,  1870 
Mar.  2,  1861 
July  14,  1870 
Mar.  2,  i  SOI 
July  14,  1870 
do 


Mar.     3,  1883 

Aug.      5, 1861 
do 


....do  

...do  

Mar.  2, 1801 
Mar.  -3, 1883 
do 


Aug.     5,1801 
Mar.      3, 1883 

do 

Uiionunieratefl 
July    14, 1802 

do 

do ,.. 

do 

....do 


Mar.     2, 1861 

do 

June     6, 1872 
do 


July    30, 1846 

July     14, 1870 
do , 


Kate  of  duty. 


25  i'"r  cent. 


6  cents  ])er  pound. 

20  per  cent 

do 

do 

5  per  cent 

4  jier  cent 

$1  per  pound 


3  cents  per  iioiiiid. 

20  per  cent 

1  cent  per  pound.. 
20  per  cent 

4  per  cent 

$6  per  ton 

1  cent  per  ]ionnd.. 
3  cents  per  ])ound . 


J  cent  ])er  pound 

1  cent  per  pound 

IJ  cents  per  pound... 


10  per  cent. 
dr 


1  cc 
20] 

$5p, 

$25  per  ton . 
$15  per  ton. 

20  per  cent. 

10  per  cent. 
30  per  cent. 
20  per  cent. 
10  per  cent. 

do 

do 


lound. 


20  per  cent Oct.  1, 1890, 


Made  free  of 

duly 
by  act  of— 


Mar.  3. 1883. 
July  14, 1870. 

1)0. 

July  1, 1879. 

"Do. 
Miir.  3,  1857. 
Mar.  2, 1861. 
Oct.  1,1890. 

Do. 

July  14, 1870. 
Oft'.  1,1800. 

Do. 
July  14,  1870. 

Do. 
June  0, 1872. 
May  1, 1872. 

Aug.  27, 1804. 
Do. 
Do. 

July  30, 1846. 
July  14,  1870. 

June  0, 1872. 
Oct.  1,  1890. 

Do. 

Do. 

Do. 

July  14, 1870. 

Mar.  3, 1883. 
Juno  6,  1872. 
.Mar.;),  1883. 

Do. 
June  6, 1872. 

Do. 


10  per  cent June  6, 1872. 

do Do. 


.do 
-do 
.do 


July  14, 1870. 

Do. 
June  6, 1872. 

20  pe-  cent Oct.  1, 1890. 

15  cents  jier  pound ■         Do. 

I 

10  per  cent July  14, 1870. 

25  percent '  Oct.  1, 1890. 

Do. 
July  14, 1870. 
Juno  6, 1872. 
Do. 
Do. 
Mar,  3, 1883. 
June  6, 1872. 

Do. 
Do. 

Aug.  27,1894. 
Do. 


do 

20  per  cent 

$1  i)er  pound 

do 

50  cents  per  pound. . 

do 

$1  50  per  ounce 


Free 

...  do 

8  c.-iits  per  100  pounds 
12  c^.utsper  100  pounds 
15  per  cent I  Mar.  3, 1857. 


10  cents  per  pound. 
5  cents  per  puuud  . 


Mar.  3, 1883. 
Do. 


RECIPROCITY    AND    COMMERCIAL    TREATIES. 


51 


Free  litt  of  the  United  State* — Coiitinuetl. 


upon  the 
iHed  upon 
I  which  it 


Mad"'  t'l'i^o  of 

tlut.V 
bv"  IK't  ol  — 


Miir.  3. 1883. 

.Tiilv  14,1870. 

Do. 
July  1, 1879. 

Do. 
Miir.  3, 1857. 
Miir.  2, 1801. 
Oct.  1,  18U0. 

Do. 

July  14, 1870. 
Oit.  1,1890. 

Do. 
July  14, 1870. 

Do. 
June  0,1872. 
May  1, 1872. 


Articles. 


Ang.  27, 1894. 
Do. 
Bo. 

July  30, 184C. 
July  14, 1870. 

June  6, 1872. 
Oct.  1, 1890. 

Do. 

Do. 

Do. 

July  14, 1870. 

Mar.  ;i,  1883. 
Juno  6,  1872. 
Mar.:!,  1883. 

Do. 
Juue  0, 1872. 

Do. 

Oct.  1, 1890. 

Juno  6, 1872. 
Do. 

July  14, 1870. 

'Do. 
June  6, 1872. 
Oct.  1,1890. 
Do. 


July  14, 1870. 
I  Oct".  1,1890. 

Do. 
July  14, 1870. 
Juno  G,  1872. 

Do. 

Do. 
Mar.  3, 1883. 
June  6, 1872. 

Do. 
Do. 

Aug.  27,1894. 

Do. 
Mar.  3, 1857. 

Mar.  3, 1883. 
Do. 


Glngpr  root 

MutnieKH 

Pei)|i«r 

I'imento 

Tar  and  pitch  of  coal  tar,  crude 

Tea  . 


Tin,  in  blocks,  bars,  pi^s,  etc 

Wood : 

Cabinet 

CliiiiboardH,  Hpruce 

Hiil)M  for  wheels,  ponta,  laHts,  oto  . 

Laths 

Boards,  ])lankH,  and  deals— 
Luniher,  sawed— 

ilenilock,  whitewood,  otc.- 
Not  planed  or  tininhed. 
Planed  or  tinishod 


Other  lumber  not  especially  pro- 
vided for — 

>^ot  planed  or  finished 

Planed  or  tlnished 


Pickets  ann  jjalings 

PcHts,  fence,  and  paving,  etc.,  of  cedar  . 

Kailroad  ties 

Kultans  and  reeds 

Shingles,  white  i)ine 

Staves  

Wool: 

Class  1 — 

Unwashed 

AVashed 

Scoured , 

Class  2— 

Unscoured 

Scoured  

Clivss  3 — 

Value  13  cents  or  less  l)or  ]i()Uiid 

Value  over  13  cents  per  jiound , 


Dutiable  under— 


Act  of- 


July    14,1870 

do 

do 

do 

Mar.  2,  1801 
July  14,1870 
July      1,1893 

Mar.  3,1857 
Juno      0, 1872 

do 

do 


.do 
-do, 


..do. 
..do. 


Oct.       1, 1890 

do 

Unenunu^rated 
July     30,  1840 
Oct.        1,  18im 
July     14, 1802 


Oct.       1, 1890 

do 

do 


.do 
.do 

-do 
.do 


Rate  of  duty— 


Made  free  of 

dnty 
by  net  of— 


2 cents  per  |)ound.. 
20  cents  per  ponnd . 
5  cents  per  pound. . 

do 

20  per  cent 

15  cents  per  pound. 
4  cent«  per  pound. . 


8  per  cent.. , 
$1.50  per  M 
20  per  cent. . 
15  percent.. 


$1  perM.  feet 

50 cents  additional  for 

each  side  planed  or 

flnlsthed. 

$2  perM.  feet 

SOcents  inaddit  ion  for 

each  side  ]>lane(l  or 

linisliod. 

10  per  cent 

20  per  coiit 

do 

10  per  cent 

20  cenls  jier  M 

10  per  cent 


11  cents  per  i)ound. 
22  cents  jier  jiound. 
33  cents  per  pound. 

12  cents  per  ]i(iund. 
36  cents  per  pound. 


32  per  cent. 
50  per  cent. 


June  0, 1870. 
Mar.  3, 1883. 

D<i. 

Do. 
Oct.  1,  1K90. 
May  1, 1872. 
Aug.  27, 1894. 

Mar.  2,1801. 
Aug.  27,  1894. 

Do. 

Do. 


Do. 
Do. 


Do. 
Do. 


Do. 

Do. 

J 1 0,1872. 

Mar.  3,  1857. 
Aug. 27,  1894. 

Do. 


Do. 
Do. 
Do. 

Do. 
Do. 

Do. 
Do. 


OONCLIISIONS. 

An  examinatioti  of  tho  foregoing  tables  will  show  the  surprising 
extent  of  the  free  list  of  the  United  States,  wliicli  now  includes  nearly 
every  natural  product  and  all  raw  materials  inii)orted  into  this  country. 
It  will  be  noticed,  too,  that  the  removal  of  duties  from  these  articles  has 
been  gradual,  and  that  we  have  never  asked  anj'^  concessions  in  return, 
although  the  governments  of  tlie  nations  which  furnished  them  would 
undoubtedly  have  made  equivalent  reductions  in  the  duties  they  impose 
upon  the  products  of  the  United  States  had  they  been  invited  to  do  so. 
This  commercial  generosity  on  the  part  of  this  Government  will  furnish 
a  basis,  however,  for  asking  reciprocal  concessions  from  such  nations 
when  a  revision  of  the  tariff  shall  again  be  made. 

Your  committee  regret  that,  owing  to  the  manifest  impossibility  of 
securing  legislation  from  the  present  Congress,  it  is  not  deemed  expe- 
dient to  report  a  measure  that  will  answer  the  urgent  demands  that 
come  from  nearly  all  our  industries  antl  from  merchants  engaged  in  the 
export  trade.  It  is  a  well-known  fact  that  political  hostility  in  the  other 
branch  of  Congress  will  prevent  the  enactment  of  any  important  legis- 
lation. Tlie  fate  of  the  revenue  bill,  the  bill  to  reform  the  administra- 
tive methods  of  the  customs  service,  and  other  measures  reporteil  from 
this  committee  and  passed  by  the  House  of  Representatives  demon- 
strates the  uselessuess  of  eujjagiug  the  time  aud  attention  of  the  House 


52 


KECIPROCrn    AND    COMMERCIAL   TREATIES. 


'1 

'il 


at  this  session  even  with  matters  that  are  demanded  by  tlie  condition 
of  the  Treasury  and  the  comnier<;ial  and  iadnstrial  co!iditi<)ns  of  the 
country.  Your  counnittee  believes  also  that  the  appliijation  of  tiie  reci- 
procii.y  princi])le  to  our  foicij^n  commerce  can  be  n»ore  wisely  made  in 
connection  with  a  general  revision  of  the  tariti"  than  as  a  separate 
measure. 

In  submittiii};'  this  report  and  tiie  testimony  which  accoinpaiiies  it, 
however,  your  comnuttee  can  not  refrain  from  a^ain  callinj;'  attention 
to  the  unaniniitv  of  opiniim  among  the  commercial  and  industrial  asso- 
ciations of  the  United  xStates  that  the  reciprocity  arrangements  nego- 
tiated under  the  tariff  act  of  18JM)  were  of  great  benelit  to  the  United 
{States;  that  their  repeal  was  a  public  calamity,  and  tiiat  the  policy  they 
rei)resent,ed  shall  bo  permanently  adopted  in  our  tarilf  le^jislation.  We 
believe  that  only  one  commercial  organization  dissents  from  this  j'.ulg- 
nient,  and  that  is  in  a  village  in  Mis8issii)pi.  The  expressions  called 
out  by  the  circulars  of  in(iiiiry  to  manufacturers  and  merchants  are 
eijually  unaninu)us  and  signilicant,  and  it  will  be  noticed  that  wher- 
ever one  dissents  from  the  princii)le  of  couunercial  reciprocity  or  its 
ai)plication  it  is  due  to  some  motive  or  reason  that  attiects  the  individual 
rather  than  the  i)ublic. 


Kespectfully  submitted. 


Fglson  Dingley,  Jr. 

SeRENO   E.   i'AYNB. 

John  Dalzell. 
Albert  J.  Hopkins. 
Cuarles  II.  Orosvenor. 
Charleh  a.  Kussell. 
Jonathan  1*.  Dolliver. 
George  VV.  JSteele. 
Martin  N.  Johnson. 
Walter  Evans. 
James  A.  Tawney. 
John  L.  McLaurin. 
Seth  W.  Coiiii. 


YIEWS 


OF  THE  MIT^ORITT. 


Mr.  Turner,  of  Georfria,  in  his  own  behalf  aiid  in  behnlf  of  Mr. 
McMillin  and  Mr.  IN'hoi  ler,  menibers  cf  the  (committee  <in  Ways  and 
Means,  who  are  nnable  to  agree  to  th^  report  of  the  committee  con- 
corninfj  "reciprocity  and  commercial  treaties,''  submits  the  following  as 
their  views: 

The  report  of  the  committee  does  not  propose  any  scheme  of  reciproc- 
ity; and  we  are  therefore  without  information  as  to  the  particular 
commercial  arrangements  which  our  associates  of  the  majority  would 
nft'er  to  other  countries.  If  the  report  is  intended  merely  for  the 
campaign,  it  might  have  still  been  pro})er  to  formulate  some  proposi- 
tion which  couhi  be  understood  and  discussed.  If  the  situation  of 
tilings  alleged  against  the  Senate  did  not  prevent  a  rei)ort  on  rciproc- 
ity,  it  ought  not  to  have  prevented  some  statement  in  detail  of  what 
is  meant  by  reciprocity. 

As  to  the  alU'ge'1  ieciprocity  undertaken  under  the  third  section  of 
the  tarift'act  of  1890,  it  is  w-ell  known  that  that  scheme  was  inserted 
ill  the  Senate,  after  having  been  previously  considered  Jind  rejected  by 
tlie  Conmiittee  on  Ways  and  Means  of  the  House.  It  may  also  be  said 
that  that  provision  tratisferred  to  the  Tresident  the  power  to  levy  and 
impose  taxes,  at  his  own  discretion,  and  was  rather  a  system  of  arbi 
tiary  retaliation  than  a  i)lan  of  rec!i)rocal  trfi<le.  We  regard  the  policy 
ot  tliat  act  in  this  resj)ect  as  contrary  to  the  spirit  of  our  institutions 
iuul  as  a  hindraiK'e  to  commerce. 

The  so  called  reciprocity  agreeinents  under  it  (we  tare  not  aware  of 
any  treaties  made  under  it)  di«l  not  reach  in  any  way  the  great  body  of 
oni  comnKMce,  and  the  gr<'at  (jommercial  countries  witli  wlii<^h  we  trade 
were  not  included  in  such  agreements. 

As  to  the  el1e«'t  of  these  reciprocity  agreements,  so  called,  during  the 
])('iiod  of  their  o])eration,  to  wit,  from  181K)  to  1«H!>4,  we  tind  it  impos- 
sible to  accept  the  conclusions  of  the  majority  report,  as  we  do  not 
regard  them  as  established  by  the  recoi'd  of  our  trade  exijcricnce. 

The  intention  of  the  reciprocity  polii  y  was  to  favor  the  exportation 
of  the  agricr.ltural  and  miinnfactnred  products  of  the  United  States. 
In  order  to  prove  that  those  afrreements  resulted  in  any  advantage  to 
(ills  ex])ort  trade  it  should  be  shown — 

1.  That  tlie  ex])orts  to  the  countries 'coming  into  tiie  agreementa 
iiHMcased  more  markedly  during  (he  existence  of  the  agreements  than 
ill  the  years  immediatel.v  preceding. 

2.  That  the  rate  of  increase  in  the  exports  to  reciprocity  countries 
was  greater  than  the  rate  of  increase  in  exports  to  other  and  non- 
reciprocity  countries  havi»' .;  nearly  the  same  economic  and  geographic 
relations  f^  the  United  States. 

68 


rmfimmm 


■■ 


54 


RECIPROCITY    AND    COMMERCIAL    TREATIES. 


.'i.  Til  at  the  commodities  spoc'ally  favored  by  the  reciprocity  agree- 
ments enjoyed  a  greater  relative  increase  than  other  commodities  not 
inclnded  under  those  trade  arrangements. 

So  far  from  proving  these  specific  and  very  pertinent  points,  we 
believe  the  majority  re])ort  to  have  passed  them  over  and  to  have 
sought  in  general  terms  and  without  special  regard  to  the  agreements 
themselves  or  countries  affected  to  give  a  foundation  to  a  trade  policy 
from  which  little  benefit  has  accrued  to  the  United  States  and  from 
which  even  less  benefit  is  to  be  expected  by  a  renewal.  In  our  opinion, 
a  careful  examination  of  the  commercial  statistics  of  the  last  ten  years, 
due  attention  being  given  to  the  reciprocity  period,  will  show  the  fol- 
lowing facts: 

1.  That  the  exports  from  the  United  States  to  the  countries  coming 
into  the  reciprocity  agreements  increased  from  $.'U),5({o,G96  in  1880 
to  $4li,8r)9,823  in  1890,  or  40.22  per  cent;  and  from  842,809,823  in  1890  to 
$52,()30,l(/8  in  1894,  or  only  22.78  per  cent.  Even  when  full  allowance  is 
nuuie  for  changes  in  prices  and  for  the  economic  and  financial  disturb- 
ances at  home  and  in  South  America,  we  can  not  recogni/e  that  the 
agreements  have  produced  any  great  influence  upon  exports  sent  to 
the  agreeing  countries. 

2.  Nor  has  their  influence  been  more  apparent  in  the  trade  of  the 
United  States  with  other  Aniericnn  countries,  where  reciprocity  was 
not  applied,  as  the  majority  report  asserts.  If  exports  to  recii)rc'}ity 
countries  increased  40,22  per  cent  in  tlio  first  period  and  22.78  per  cent 
in  the  second,  exports  to  other  American  countries  increased  33.22  ])er 
cent  between  188(!  and  1890,  and  11.32  per  cent  from  1890  to  18<)4. 
Tliis  comparison  shows  that  commerce  with  ^eciproc^ty  countries  fol- 
lowed nearly  the  same  vicissitudes  as  commerce  with  other  American 
countries. 

3.  The  trade  returns  further  show  that  the  export  interest  of  the 
United  States  to  the  agreeing  countries  increased  at  a  much  higher 
ratci  in  the  years  before  reciju'ocity  than  during  the  existence  of  these 
commercial  arrangements.  This  becomes  apparent  from  the  following 
comparison  of  the  increase  in  the  two  periods: 

Trade  of  the  United  States  with  reciprocitt/  and  other  American  countries,  ISSG  and  1S90, 

and  1S90  and  1S94. 


Countrii'8. 

Imports. 

Increase  (-f-) 

or 
<lecrert8e(— ). 

Imports. 

Increase  (+) 

1880. 

1890. 

1800. 

1894. 

(lcci'cnHe(— ). 

Rcciprocitv  coniitrips ; 
Ooiitral  Aini'iicn. . 
Wo.st  Iiidit^n— 

Uriti.sh 

Culm 

Otber 

$.5,017,308 

0,  K53,  OHO 
51,  110,780 

0.  250.  675 
41..  17,  .532 

1,864,  .596 

$0,  375,  733 

14,865,018 
.53.801,501 

6.  004.  639 
.50.318,750 

4,  326, 075 

Per  cent. 
+  27.07 

+  50.80 
+-     5. 20 
—     3. 04 
+-  41.. 55 
+  132.10 

$6,  r575, 733 

14,86.5,018 
.53,801,501 

0,  0114, 030 
,50,3)8,7.56 

4,  320,  975 

$7,481,665 

13,017,178 
75,  678,  201 

6,  336,  480 
70,360,  159 

4, 223,  970 

Per  cent. 
+•  1,74 

-12.43 

+  33.60 
+-  5.  .53 
+  33.77 
-  2.  38 

Brnzil 

Giiiiiim— HritUli.. 

TotAl   rociproc- 
ity  coniitiit'H.. 
OUior  Aiiinricuiit'oiiii' 

110,001,031 
76,  302,  310 

144.602,712 
93,  fi«2,  138 

+  24.73 
+-  12.20 

144, 692, 712 
03,  082, 138 

186,097,719 
81,071,047 

+-28.  62 
13.40 

Totnl  AniPi-ican 
t'tmnlili'M 

101,300,041 

238,  374,  850 

+-  24.60 

238, 374, 850 

267, 160, 006 

-t-12.08 

RECIPEOCITY    AND   COMMERCIAL   TREATIES. 


55 


Trade  of  the  United  States  with  reciproclti/  and  other  American  countries,  1S86  and  1S90, 

and  1890  and' lS94—Co\\imiwii.. 


Per  cent. 
+  1,74 

—12.43 
+  33.09 

+  5.,''.:i 
+  33.77 
—  2.38 

+28.  02 
—13.40 

+  12.08 


Countries. 

Eiiu-rts. 

Increase ( + ) 

or 
decrease  (—). 

Exports. 

Increase  (+) 

1886. 

1890. 

1890. 

1894. 

decrease  (—). 

Reciprocity  countries : 
Centnu  America.. 
West  Indies— 
ISritish 

$1, 954,  391 

7,  322, 126 
10,  409, 170 
2,  754,  499 
6,  .541,  216 
1,  684,  294 

$4, 179, 308 

8,  288,  780 
13,084,415 

3,  247,  755 
11,972.214 

2, 100,  345 

Per  cent. 
-i-113.40 

+  13.20 
-t   2.5.70 
+  17.91 
+-  83.03 
+  32.96 

$4, 170, 308 

8,  288,  786 
13,  084,  415 

3,  247,  755 
11,  972,  214 

2,  lot',  345 

$3, 229, 935 

8,  512,  016 
20,  125,  321 

4, 48:i,  110 
13,  800,  006 

2,414,720 

Per  eent. 
-22. 65 

+  3.90 
+  53.82 
+  37.92 
+  15.82 
+  14.64 

Otlior 

■Rrazil      

Guiana — Britisli . . 

Total  reciprocity 

countries 

0 1  li  0  r  American 

30, 560,  696 
67, 546, 695 

42, 869, 823 
89,983,415 

-)-  40.  22 
+  33.  22 

42, 869, 823 
89,  983, 415 

62, 637, 108 
100, 188, 412 

+  22.78 
+  11.32 

Total  American 
countries 

98, 112,  391      132  ,  853,  238 

+.  35.41 

132, 853, 238 

152,  805,  .522 

+  15.02 

4.  However  much  individual  countries  may  seem  to  have  benefited 
our  export  trade,  examples  of  even  greater  benefits  could  be  found  in 
other  directions  where  no  special  concessions  had  been  made  or  asked. 

It  may  be  noted  that  our  exports  to  Canada  have  increased  from 
$36,0()0,()0()  in  1891  to  $50,000,000  in  1894  without  the  aid  of  any  reci- 
procity Jigreement.  In  the  same  period  the  ex])orts  to  all  the  West 
Indies  rose  only  from  $33,400,000  to  $41,000,000;  and  of  those  to  all 
South  America,  the  value  fell  from  $33,220,000  to  $32,644,000.  Our 
actual  commercial  interests  with  our  northern  neighbor  is  fjrcater  than 
those  with  either  of  the  two  great  divisions  of  the  Indies  and  South 
America,  and  have  been  maintained  in  the  face  of  every  discourage- 
ment the  ingenuity  of  interested  legislation  could  devise,  as  well  as  of 
commercial  distu'-bance  and  disaster.  From  188G  to  1S91  general  trade 
^ith  American  countries  was  on  the  increase,  and  would  have  increased 
had  no  reciprocity  schemes  been  adopted.  Geographically  the  United 
States  is  better  situated  for  supplying  these  markets,  and,  as  the  best 
customer  for  their  productions,  it  would  be  only  natural  to  look  for 
some  return  trade,  and  notably  in  certain  lines  of  specialties  which 
have  long  prominently  fed  our  foreign  trade. 

5.  If  the  reciprocity  agreements  were  essential  a^  its  in  maintaining 
trade  with  the  contracting  countries,  and  if  the  abrogation  of  them 
stiuck  a  dangerous  and  iuimediate  blow  at  this  trade,  as  is  asserted, 
how  does  it  hapi)en,  it  is  reasonable  to  ask,  that  e\])orts  were  in  some 
ciises  greater  in  1895  than  in  1893lf  For  example  the  exports  were  as 
Ibllows: 


Country. 

1893. 

18!>5. 

Country. 

1893. 

1895. 

ITonfliirfiH    .  ............ 

$442, 907 

1,713,142 

812,654 

$615,009 

2,  590,  032 

067,  329 

1 

Sulx'.'tdor 

$1,118,054 

1,108,7:;3 

12,  339,  584 

$1,236  506 

1, 318,919 

N icifcniirutt  *........  .... 

iJruail 

15.  135. 126 

The  exports  to  the  Hritish  West  Indies,  Cuba,  Puerto  lli(!0,  and 
British  (Juiani;  showed  a  decrease,  and  in  che  case  of  Cuba  local  con- 
ditions will  aiford  an  ample  e\]diination. 

0.  B(>fore  passing  to  specitic  countries  and  articles  it  n'.ay  bi*  well  to 
look  at  the  negative  side  of  the  reciprocity  schcine.  J'enalty  or  dis- 
criminating duties  were  to  be  imposed  upon  certain  xnoducts  of  such 


it 


wrrmm^imi^fimfm 


,.11 


!4i 


66 


RECIPliOCITY    AND   COMMERCIAL   TREATIES. 


countries  as  refused  or  were  unwillinff  to  enter  into  tlio  ap'eements. 
These  countries,  under  the  uutocratic  powers  of  the  President,  were 
aifected  by  tliese  discriminuting  duties:  Colombia,  Hniti,  and  Vene- 
zuela. All  colfee,  hides,  and  skins,  and  sugar  imported  into  the  United 
States  from  those  countries  paid  duty,  at  once  placing  their  products  at 
a  decided  disadvantage  with  similar  products  from  the  countries 
admitted  free  of  duty.  The  result  was  a  serious  decrease  of  the 
imports  from  the  three  countries,  as  their  most  important  ])rodu(!tioiis 
for  exi)ort  were  covered  by  the  penalty  duties.  The  loss  following  the 
imj)ositio'i  of  duties  and  the  marked  resunijition  of  trade  after  the 
duties  were  rei)ealed  are  proved  by  the  following  table: 


Tear. 


ImportB  of  coffee  into  the  United  States. 


1891. 
1892- 
ISflli. 
1H94. 
1895. 


From  Haiti. 


I'liiindx. 

12,  (i4'J.  .'■>4-l 

14,  97K,  ,577 

7,  540 

47,  320 

12,575,5;i8 


Quantity.        Value 


$1,988,943 

2, 197,  204 

929 

0,971 

1,  800,  304 


From  Colombia. 


Quantity. 


PouniU. 

14,549,  108 

11,792,  7;i.S 

7,  4'l)2,  .')45 

2,  «.')!l,  100 

10,  888, 132 


Value. 


.'ii2,49l,811 

1 ,  988,  079 

1,392,252 

44;!,  705 

1, 688,  250 


r"rom  Venezuela. 


Quantity.       Value 


l-'uiinds. 
60,217,980 

53,  |:!9,  785 
15, 101,. 5,58 
16,515,888 
52,710,402 


$10  814,  874 

095, 042 

J,  472,  343 

2,  089,  479 

8, 872,  179 


lu  this  single  item  of  coffee  a  trad''  with  the  three  penalty  countries 
valued  at  $15,2!)o,0L*8  in  1801  was  struck  down  by  the  "reciprocity 
policy"  to  $3,8(55,524  in  189.'}  and  |3,U<>,215  in  181)1.  The  value  of 
hides  and  skins  imported  from  Haiti  fell  from  $24,029  in  1891  to 
$17,044  in  1893  and  $11,900  in  1894.  The  imports  of  hides  and  skins 
from  Colombia  were  reduced  by  the  penalty  duties  to  but  a  small  part 
of  the  former  importance.  In  1891  the  value  of  these  imports  was 
$767,743;  in  1893,  $605,230,  and  in  1894,  $438,819.  One-half  of  the 
trade  with  Venezuela  in  hides  and  skins  was  in  like  manner  turned 
away.  It  is  safe  to  assert  that  the  loss  of  imports  in  these  articles 
from  the  three  countries  amounted  to  $12,500,000  in  each  year  the  reci- 
procity agreements  were  in  force.  It  is  only  just  to  take  account  of 
this  connnercial  loss  in  reaching  some  determination  of  the  results  of 
that  policy. 

In  addition  to  this  heavy  commercial  loss,  the  injury  to  the  prestige 
of  the  United  States  in  these  countries  must  be  mentioned.  It  was 
charged  that  treaty  obligations  were  broken;  that  undue  advantage 
was  taken  of  the  financial  needs  of  the  local  treasuries,  and  conces- 
sions forced  at  a  cost  which  did  not  lall  ujjon  the  United  States,  but 
upon  the  southern  country.  It  is  a  serious  question  whether  such  a 
policy  is  calculated  to  draw  the  American  nations  into  closer  bonds  of 
union.     As  a  recent  writer  has  stated — 

The  y;eueral  coiicejition  oC  a  lecipiocity  trade  has  bceu  that  it  jrives  an  advautiigo 
to  Iho  ic.t'ipieut  ajjiiiiL^it  the  woild.  In  the.  B.vstcui  of  1S!)0  tho  taker  was  i)eriiiitft'd 
to  euter  our  markets  on  au  equality  with  the  world  at  a  saeritico  to  himseli". 


BRAZIL. 


7.  It  is  in  the  trade  with  Brazil  that  the  chief  jilstiflcation  of  the 
recii)rocity  policy  is  said  to  be  fuund.  The  exports  from  the  United 
States  to  lira/.il  increased  from  $(>,541,216  in  1887  to  $ll,9f2,214  iu 
1890,  or  by  83.03  per  cent.    From  1890  to  1894  the  exports  rose  from 


■m 


KECIPKOCITY    AND   COMMERCIAL   TREATIES. 


m 


$11,972,214  to  $13,8(ii;,0()(;,  or  15.8  per  cent.  It  may  be  stated  lliat  the 
exports  in  1892  were  somewhat  larger  than  they  were  in  1894  (by  about 
$4{)(),(H)0),  but  the  year  1894  is  the  fairer  guide,  as  making  what  should 
have  been  the  liighwater  marlv  of  exports,  fostered  for  three  years 
under  the  reciprocity  agreement.  In  value  the  exports  rose  far  more 
rapidly  before  than  dnring  recipiocity. 

Analyzing  the  exports  in  detail  according  to  the  concessions  made 
in  that  agreement,  the  following  is  the  result: 


1890. 

1894. 

$6,  818,  :i72 
3,  088,  7L"J 
1,  0'J5,  402 

$7, 574, 536 
3  "0''  830 

A  rticlcH  iitl  mi  (It'll  into  IJrii/il  wicli  reduced  duties                              ....    .       ..... 

Ot  lior  artit'lnM                 _    ....     ................     ..          ..         .           ......     ...... 

2  TiSU  548 

Total    

11,902,406 

13,  827,  914 

The  curious  resnlt  is  thus  gained,  that  the  value  of  the  exports 
admitted  free  of  duty  increas'^1  $75(J,1<)4,  or  11  i)er  cent;  that  of  the 
exports  admitted  under  reduced  duties  $()14,1()8  or  nearly  20  per  cent; 
and  that  of  exports  uuattected  by  the  agreement,  $555,140,  or  more  thau 
27  per  cent. 

Nor  is  this  the  only  doubt  cast  by  the  official  trade  returns  ujjou  the 
eli'ect  of  recii)rocity  with  Brazil.  The  exports  of  leading  articles  imme- 
diately aflected  by  the  agreement  were  actually  larger  in  1895,  after  the 
abrogation  of  the  agreement,  than  iu  any  one  year  during  its  continu- 
ance. The  manufactures  of  iron  and  steel  admitted  free  of  duty  by 
the  agreement  were  valued  at  $l,8;32,a29  in  1891;  $1,813,739  in  1892; 
$1,443,459  in  18!i3;  $1,005,299  in  1894,  and  $2,409,640  in  1895.  In  no 
previous  year  since  1880  had  the  ])urchase  by  Brazil  of  car  wheels, 
builders'  hardware,  and  locomotive  engines  been  so  large  as  they  were 
in  1895. 

In  other  articles  the  same  denial  of  the  benefits  of  reciprocity  is  to 
be  met.  Larger  values  of  naval  stores,  of  cottonseed  oil.  of  bacon,  of 
pickled  pork,  of  butter,  of  cotton  cloths,  of  sewing  machines,  and 
of  wire  were  exported  from  the  United  States  to  Brazil  iu  1895  tiiau 
in  any  year  since  1880.  It  can  not  be  asserted  that  the  momentum 
of  the  reciprocity  policy  led  to  this  result,  for  it  is  exjnessly  asserted 
that  the  abrogation  of  that  p<»licy  was  greatly  ami  immediately  injuri- 
ous to  the  trade  built  up  under  it.  If  Brazil  is  the  shining  example  of 
the  results  of  reciproi-ity  it  will  be  well  to  bear  i'l  mind  the  follow- 
ing tigures,  giving  the  value  of  all  exports  from  the  United  fStates  to 
that  country: 

18J»0  ( liefore  reciprocity) $11,  '(72,  214 

1891  (four  months  alter  reciprocity) 11,  IL'O,  246 

1892  (lull  reciproci ty ) 14,  291 ,  873 

ISM  (full  reciprocity) 12,  88S,  124 

1894  (lull  leciprocity) i:{, 8()(). (X)6 

1895  (reciprocity  abrogated) 15, 105,079 

CUBA. 

8.  A  second  example  of  the  benefits  of  reciprocity  is  said  to  be  found 
in  our  trade  with  that  unhappy  island,  Cuba,  now  sutVcring  from  a  civil 
(!onunofion  which  has  so  far  interfered  with  all  conimerceas  to  render 
out  oi'  the  quetitiou  uuy  comparison  of  results.    It  luuy  be  stated  the 


58 


RECIPliOCITY    AND    COMMERCIAL    TREATIES. 


exports  of  aj^ricnltiiral  ]>io(lucts  of  tlie  Uiiite«l  States  to  that  island 
were  rapidly  iucreasiug  iu  value,  as  tlie  follo\viii<;'  t;ible  shows: 

Exports  from  the  United  States  to  Cuba. 


Tear. 

Agricul- 
tural. 

Total. 

Year. 

Agricul- 
tural. 

Total. 

]  890                      

$4, 807, 090 
4,119,728 
7,  343, 959 

$12,  669,  509 
U,  Olio,  605 
17,022,411 

'  1803  

$10, 492.  352 
9,  440.  953 
5,531,528 

$23, 604, 094 
19  855.  237 

]8<)1                      

IHflt 

1892 

1895 

12,  533,  260 

If  the  exports  of  foreign  merchandise  to  Cuba  be  included,  the  trade 
with  that  island  is  cited  with  some  ])lausil)ility  as  an  example  of  success 
under  iecii)rocity.  The  total  exports  (foreign  and  domestic)  increased 
from  $10,41)9,170  in  188()  to  $13,084,415  iu  1890,  or  by  25.7  per  cent. 
Between  1890  and  1894  the  exi)orts  rose  from  $13,084,415  to  $20,125,321, 
or  53.8  per  cent.  The  detail  of  increase  in  the  various  classes  of  agri- 
cultural products  (where  the  largest  gains  were  made)  is  shown  as 
follows: 


Year. 

nreadstufl's. 

1 
rro\  isions.    Vegetables. 

Tear. 

Breatlstuffs. 

Provisionp. 

Vegetables. 

1890 

1891 

1892* 

,$1, 520, 617 

874,979 

2,  305,  031 

$2, 907,  802 
2, 787, 608 
4,214,481 

$322,  355 
291,421 
540,  329 

1893* 

1894* 

1895 

$3,512,207 
3, 164,  .'-.41 
1,  509,  010 

$5, 700, 536 
5,140,215 
3,  245,  854 

.$978, 261 
797,  464 
501,664 

*Year  of  reciprooity. 

The  increase  iu  our  trade  with  Cuba,  in  our  opinion,  was  due  most 
largely  to  the  repeal  of  the  high  duty  which  we  had  previously  levied 
on  sugar.  The  abolition  of  the  tax  removed  a  restriction  on  commerce. 
The  sliips  which  carried  more  sugar  one  way  carried  more  of  our  prod- 
ucts the  other  way.  Buying  and  selling  alwaj^s  take  place  together 
when  restrictions  are  removed.  And  the  condition  of  things  prevailing 
in  Cuba  for  the  i)ast  (ifteen  months,  and  likely  to  continue  for  some 
time,  would  not  admit  of  satisfactory  trade  relations  under  the  agree- 
ments mentioned,  or  any  other  which  might  be  made  with  Spaiu. 

ARGENTINA  A  COMPETITOE. 

9.  Nor  is  it  any  more  natural  to  sup^nise  that  Brazil  would  again  opeu 
her  markets  to  the  wheat  and  wheat  Hour  of  the  United  Stales  to  the 
exclusion  of  the  same  i)roducts  of  other  countries.  Not  only  has  it  an 
important  milling  interest  to  protect,  but  available  su])plie8  of  both 
wheat  and  wheat  tloiir  are  at  its  very  doors,  grown  and  manufactured 
by  Argentina.  The  same  reasons  which  induce  our  border  States  to 
import  cereals  from  Canada  impel  the  Brazilian  to  turn  to  what  is  the 
nearest  source  of  supply  and  what  is,  as  is  generally  believed,  capable 
of  supi>lying  wheat  at  a  less  cost  of  production  tiian  is  i)ossible  in  the 
United  States.  This  is  evidenced  by  the  fact  that  the  existiMice  of  the 
reciprocity  agreements  had  no  inlluence  in  checking  the  remarkaole 
increase  in  the  imports  of  wheat  and  wheat  liour  into  Brazil  from 
Argentina  (1  kilo  =  2.2040  jjouuds). 


as 


RECIPROCITY    AND    COMMERCIAL    TREATIES. 


Imports  into  Brazil  from  Argentina. 


59 


Year. 

Wheat. 

Wheat 
flour. 

Year. 

Wheat. 

Wheat 
tibur. 

1889 

Kilos. 
4,  209,  762 
91,603,801 
103,  680,  635 

Kilos. 
678, 202 
6, 016, 125 
2,118,524 

1892      

Kilot. 
113,226,286 
232,  774,  000 
47.5,113,000 

Kilot. 
10,  361,  957 
24, 453,  000 
32,  582, 000 

18!)0  

1893          

1891 

1894 

After  reiuling  these  figures  it  might  be  concluded  that  all  the  ].ossi- 
ble  benelits  to  be  derived  from  the  recii)rocity  ngieeiiieiit  hns  inured 
to  Argentina  and  not  to  the  United  States,  for  the  exports  from  the 
United  States  to  Brazil  in  the  same  year  were: 


Year. 

Wlicat. 

Wheat  flour. 

Y^ear. 

AVheat. 

Wlieat  flour. 

1889              

liiihhelt. 
41.5,507 

1,768,234 
5811,  127 
164, 622 

Barrels. 

678, 972 
687.  342 
722, 309 
918,547 

1893 

livsheU. 
63,  928 
63 
63 

Barrels. 

837  039 

J890 

1894 

920  869 

1891 

1895 

775, 425 

1892 

Thus  so  far  from  the  imports  of  Argentina  wheat  and  flour  into 
Brazil  having  been  of  smiill  moment,  these  returns  show  tliat  they  were 
increasing  far  more  rapidly  than  imports  from  the  United  States.  So 
far  from  tlie  United  States  enjoying  a  firm  hold  in  tlie  Brazilian  market 
for  breadstufls,  this  com])arison  shows  that  whatever  had  been  the 
increase  of  ex])orts  from  the  United  States  to  Brazil,  the  ex|)orts  from 
Argentina  to  Brazil  were  far  greater,  and  as  further  evidence  that  the 
wheat  flour  of  the  United  States,  even  when  admitted  free  of  duty, 
could  not  compete  in  Brazil  with  the  flour  of  Argentina,  im{)orted  under 
a  duty  of  6  per  cent  ad  valorem,  attention  may  be  called  to  the  follow- 
ing extract  from  a  report  i)repared  by  an  American  citizen  resident  in 
Rio  Janeiro,  who  makes  the  llour  business  a  specialty,  published  in  the 
Consular  Eeports : 

Our  reciprocity  treaty  with  Brazil  and  the  duty  wliich  tlio  JJiver  Plate  flour  pays 
against  the  entry  free  of  duty  of  the  American  Hour  HhouM  bo,  it  may  be  said,  sulli- 
ci(!nt  to  make  the  American  Hour  compete  favorably  witli  the  former.  To  this  the 
answer  is  that  the  United  States  can  not  favorably  compcic,  under  cxistinfi;  circum- 
BtanccH,  with  the  liiver  I'lato  republics,  despite  tlio  reciprocity  treaty.  On  the  con- 
trary, the  United  states  are  at  a  considerabhi  di.sadvantaj;e  thr()u,i;h  (I),tlni  consid- 
erably higher  freight  American  (lour  has  to  pay  (exi'cj)tiiig,  pcrliaps,  as  regards  the 
Stat«!8  of  Manaos,  I'ara,  Piauhy,  Maraniiao,  and  Ccara,  comprising  at  the  most  one- 
seventh  of  the  entire  population),  and  (2)  the  Arg(^iitine  luijler  is  almost  in  direct 
connection  with  the  Hrazilian  Ibuir  consumer,  anil  thus  saves  the  broker's  commis- 
sion which  the  American  nuUor  pays  in  selling  to  the  Ameiican  export  commission 
house,  1{  per  cent  comnussion,  wliich  the  American  ex]tort  commission  liouse  charges 
for  exporting  the  llour,  and  inter(\st  at  (5  ])er  cent  per  annum,  or  aliout  I  ])er  cent  for 
the  time  the  American  Hour  .and  the  remittance  for  its  value  are  en  voyage,  lioth 
those  voyages  taking  about  two  moiitlis  more  in  the  case  of  the  United  .States  as 
compared  with  Argentina  and  Uruguay. 

i      EXPORTS   OP  WHEAT  FLOUR. 

10.  A  special  plea  is  made  on  behalf  of  the  milling  interest  of  the 
United  States  as  one  of  two  great  beneliciarics  under  the  reciprocity 
policy.  It  would  be  unjust  not  to  ])ay  a  tribute  to  tiie  remarkable 
growth  of  that  industry,  wlii(ni  has  enalded  it  to  meet  the  ever  increas- 
ing domestic  demand  and  to  steadily  expand  in  the  Ibn-ign  trade.  Six 
million  barrels  were  exported  in  1880  and  12,2ol,71I  barrels  in  1890. 


t  ■:■% 


60 


RECIPROCITY   AND   COMMERCIAL   TREATIES. 


The  export  promised  ajjaiTi  to  more  than  be  doubled  in  the  ten  years 
from  181M)  to  11)00,  and  in  18«»4  reaehed  the  remarkable  total  of  Hi,8r)J>,r);S3 
biirrels.  In  1805  tlie  returns  of  exports  fell  to  16,208,892  barrels — a  loss 
of  about  l,<iOO,(>00  barrels. 

That  the  rapid  increavse  in  the  exports  after  1800  was  only  in  small 
measure  due  to  the  reciprocity  a<;reements  a  little  eonsideration  will 
siiow.  In  1801  the  exports  of  Hour  to  such  Anu;rican  countries  as 
accepted  reciprocity  amounted  to  1,847,080  barrels;  in  180.'}  the  same 
countries  took  2,r)l(),(J18  barrels,  and  in  1804  2,707,435  barrels.  The  total 
jjain  'U  tiour  exports  to  these  countries  during  the  reciprocity  i)eiiod 
was  thus  9r»0,.'34(!  barrels.  Jiut  the  total  exi)orts  of  flour  in  ISOI  were 
11,344,034  barrels,  and  in  1804  lG,8.50,r)33  barrels— a  gain  of  5,r)ir),4!>0 
barrels.  "  Only  17.2  per  <!ent  of  this  gain  was  due  to  increased  exports 
to  reciprocity  countries. 

As  a  further  illustration  of  how  small,  in  relation  to  the  whole  trade, 
this  wheat-tlour  export  under  reci])rocity  has  been  it  mr.y  be  stated 
that  the  export  to  reciprocity  countries  constituted  10.28  per  cent  of 
the  total  exports  in  1801;  15.14  per  cent  in  1803,  and  1(5.5  per  cent  in 
1804.  After  three  years  of  reciprocity  these  countries  took  a  very  little 
larger  sluireof  the  flour  exports  than  they  had  taken  in  1801.  Instead 
of  exi)laining  the  exports  of  1805  to  be  due  to  the  abrogation  of  the 
reciprocity  agreements  it  would  be  more  accurate  to  ex]dain  them  by 
the  rapid  rise  of  an  aggressive  competition  and  by  improved  local  con- 
ditions of  supply. 

No  attention  lias  been  given  to  the  agreement  with  Germany  nor  to 
the  advances  made  by  Fiance.  Legislation  directed  against  American 
ogri(;ultural  products  has  been  the  rule  for  more  than  twelve  years  and 
oeconies  more  obvious  during  a  ])eriod  of  agricultural  depression  in 
those  <;oun tries.  Further,  we  do  not  believe  that  the  agreement  entered 
into  with  (lermany  had  any  influence  upon  exi)orts  from  the  United 
States,  and  it  would  be  idle  to  give  further  examination  to  that  branch 
of  the  question  than  is  alforded  in  the  following  extract: 

In  1891  the  crops  of  Europe  were  extremoly  poor  and  we  exported  in  1892  ^vesit 
(lujintities  of  wheat  and  llonr.  Later  than  this  a  tarill"  war  between  Germany  and 
Jinissia  broke  out,  and  Uennnny  bouj^ht  grain  from  ns  intead  of  from  Rnssia.  J'hen 
the  Argentine  Republic  ap])oared  as  a  great  exporter  of  wheat  and  (Jermany  was  one 
of  her  best  customers,  what  she  bought  of  Argentina  of  course  diminishing  her 
requirements  from  us.  Finally,  tlie  tariff  war  with  Russia  was  terminated  and  Ger- 
many resumed  buying  grain  as  usual  from  Russia  and  her  purchases  from  us  fell  otf 
rapidly. 

CONCLUSIONS. 

We  conclude  that  there  is  little  evidence  of  any  marked  benefits 
flowing  from  the  reciprocity  agreements. 

That  the  plea  in  its  favor  based  upon  the  flour-milling  interest  is  not 
juKtiHed  by  statistics. 

That  we  can  see  no  good  reason  for  entering  into  commercial  alliances 
restricting  the  freedom  of  commercial  legislation  in  this  country. 

That  uniform  rates  of  duty,  applying  equally  to  the  products  of  all 
nations,  is  the  only  safe  policy  to  pursue,  as  it  can  give  occasion  to  no 
complaints  of  urifair  treatment,  such  as  must  arise  under  a  scheme  of 
discriminating  duties. 

H.  G.  Turner. 
, ^  .-.  Benton  McMiLLiN. 

Joseph  Wheeler. 


APPENDIX   A. 


RECIPROCITY  WITH  CANADA. 


61 


APPENDIX  A. 


RECiriUXJlTY   WITH  CANADA. 


STATEMENT  BY  HON.  EDWARD  FARRER,  OF  TORONTO. 


In  conipliiince  witli  your  request,  I  bef;  to  .send  tlu^  tollowiufj  iiieino- 
ran<linn  with  resi»ect  to  tlie  position  of  tlio  nuiprocity  (Miestioii  in 
Canada. 

It  is  necessary  for  a  proper  nndcrstandiiif;  of  the  case  to  make  a  few 
preliminary  observations  on  the  j>ast  history  of  the  subject. 

The  Canadian  Provinces  did  comparatively  little  trade  with  the 
TJnite<l  Slates  prior  to  ISJO.  For  one  thinj;,  there  were  no  railroads 
between  the  two  countries  nor  bridjjes  across  the  frontier  rivers.  The 
main  reason,  however,  was  that  <lown  to  lSt(>(ireat  liritain  encourajjed 
colonial  exports  to  her  market  by  means  of  i)referenti«l  duties,  receiving 
in  return  i)referential  treatment  for  her  manufactured  j»'oo<ls  in  the 
colonial  markets.  The  jiolicy  w««  a  survival  from  the  aR<'  when  colonies 
were  valuiMl  .simply  as  dumping  gn.'jnds  for  the  metropolitan  trader. 
The  products  of  one  colony  had  also  a  ])referem;e  in  the  market  of 
another.  The  British  West  India  planters  were  constantly  coinjjlaining 
that  they  had  to  pay  more  for  Canadian  flour  and  bariel  staves  than  the 
price  in  the  United  States;  Canada,  that  Hritish  West  India  sugar 
which  she  had  to  import  was  dearer  than  the  sugar  of  Cuba  and  Brazil. 
Incidentally,  the  policy  was  of  considerable  benefit  to  the  shipping 
interests  of  Montreal  and  Quebec,  a  good  deal  of  Annnican  produce 
being  forwarded  from  those  ports  to  England  and  palmed  off  as  Cana- 
dian by  means  of  forged  (;ertificates  of  origin  in  order  to  get  the  advan- 
tage of  the  lo»ver  duties  levied  on  Canadian  produce.  Canada  did  not 
make  much  progress,  however,  under  this  seemingly  favorable  system. 
The  chief  objection  to  it  was  that  it  left  Canada  poor  by  depriving  her 
of  the  opportunity  of  establishing  manufactures  of  her  own.  On  the 
other  hand,  it  was  alleged  by  Jiritish  free  traders  that  the  policy,  while 
compelling  the  British  <'onsumer  to  i)ay  an  exorbitant  price  for  food 
and  raw  material,  was  of  no  practical  benefit  to  the  British  manufac- 
turer, because,  although  he  had  a  i)referential  duty  in  the  colonies,  it 
was  of  litth'  value  owing  to  the  fa(!t  that  his  goods  were  cheaper  as  a 
rule  than  those  of  foreign  rivals.  Tlie  system  came  to  an  end  with  the 
adoption  in  1810  of  free  trade  by  England.  A  school  of  Imperial  Ked- 
erationists  in  England  and  the  coh)nies  at  the  present  day  advocates 
the  restoration  of  this  policy. 

A  MEANS   OF  CONSOLIDATING  THE   BRITISH  EMPIRE. 

The  objection  to  it  from  the  British  point  of  view  is  that  it  would 
exalt  the  price  of  food  and  raw  materials  to  the  British  manufacturer 
and  artisan,  and  at  the  same  time  diminish  England's  trade  with  for- 
eign countries,  which  is  much  more  valuable  to  her  than  her  trade  with 
the  colonies. 


64 


RECIPROCITY    STATEM KNTS. 


Tn  round  nmnbcis,  I'^n.uland's  in)|)oits  fi-om  f(»ioij;ii  cnmitvios  ijvciiif^o 
75  ])«'r(!(;nt  oC  )ior  total  iiiii)oit.s,  while  her  iinporls  from  tlu;  colonics 
av('ia{»e  2")  per  cent;  lier  exports  to  t'orci^ii  ('()untri<'s  aiiioiint  to  70  per 
cent  of  tlH'  wliole  export  trade,  her  expoits  to  the  (roh)ni('S  to  .'{<>. 
EnffhiiHrs.tiade  witli  her  colonies  is  not  advanciiiff  any  more  rapidly 
than  her  trach',  with  foreifjn  <!onntries.  India,  it  must  he  reniendx'red, 
is  not  a  (iolony,  proi)erly  so  called,  but  a  dependency  whose  tariff  is 
refjulated  by  lOngland.  The  preferential  policy  wouhl  therefore  apply 
only  to  the  self-jjovernin^  colonies  of  Canada,  Australia,  New  Zealand, 
and  South  Africa.  Tlie  objection  from  the  Canadian  i)oint  of  view  is 
that,  by  reducinj^-  tlie  duties  on  British  jjoods,  the  j)oli<'y  would  tend  to 
destroy  Canadian  manufactures.  Moieover,  as  it  would  involve  differ- 
ential «luties  afjainst  the  United  States,  Canadians  take  it  for  frranted. 
that  the  Unite(i  States  would  retaliate  by  excludinjj  Canadian  exjjorts 
to  the  United  States,  and  i)ossibly  by  abrogating  the  bonding  privilege. 

EFFORTS   TO   OBTAIN  A  TREATY  WITH  THE   UNITED   STATES. 

During  tlie  existence  of  this  preferential  arrangement  with  ICngland, 
Canada  mad(^  i)ersistent  etforts  to  obtain  a  reciprocity  treaty  with  the 
United  States.  From  181(5  to  1S51  the  British  Government  was  fre- 
quently importuned  to  do  something  .at  Washington,  and  the  adminis- 
trations of  Monroe,  John  Quincy  Adams,  Jackson,  Harrison,  Tyler, 
Polk,  Taylor,  and  Fillmore  were  all  approached  by  the  British  minister. 
In  1848,  after  the  abolition  of  the  ])referential  policy  by  Knglaiid,  the' 
(loveinmentot  Upper  Canada  i)ointed  out  to  Lord  I'^lgin,  the  Governor- 
(ieneral,  that  "the  Imperial  Parliament  Inn  ing  adoyjted  the  principle 
of  free  trade  in  wheat  aiul  other  ])i'o(luct.s  of  the  soil,  the  eft'ect  will  be 
that  in  future  the  manufacturing  districts  in  the  Eastern  States  of  the 
AuHirican  Union  will  frequently  be  the  best  market  for  the  agricultural 
])rodu<'ts  of  Canada.  It  can  not  be  desired  by  any  friend  of  British 
connection  that  the  Canadian  peo])le  should  find  themselves  excluded 
from  the  best  market  for  their  products  by  a  tariff  of  high  if  not  pro- 
hibitory duties." 

About  this  time  a  some^'hat  formidable  annexation  movement  arose 
in  Montreal.  In  a  nianife  -  )  to  the  Canadian  ])eoi)le  the  h'aders  pointed 
out  that  protection  to  Canadian  products  in  the  markets  of  the  United 
Kingdom  having  ceased,  and  protection  to  Canadian  manufactures 
being,  in  their  oi)inion,  iinpracti<'able,  nothing  remained  for  Canadians 
but  reciprocal  free  trade  in  natural  products  with  the  United  States, 
or  political  union  with  that  country.  They  assumed  that  reciprocity 
was  not  obtainable,  and  that  if  obtained  it  would  yield  but  a  meager 
installment  of  the  advantages  which  might  be  secured  by  political  union. 

The  manifesto  stated — 

Tliat  politiral  union  wonld  render  Canada  a  field  for  American  capital,  into  which 
it  would  enter  as  freely  for  the  prosecution  of  jinblic  works  and  ])rivate  enter]irise 
aa  into  any  of  tli(^  present  States  of  the  Union;  it  would  ('(jualize  the  value  of  real 
estate  upon  hoth  sides  of  the  boundary,  thereby  probably  (loul)linK  nt  once  the 
entire  present  value  of  ])r()])erty  in  Canada;  it  would  render  our  rivcjrs  and  canals 
the  highway  for  the  ininu<;ration  to  and  exports  from  the  West,  to  the  iucalculabh; 
benelit  of  onr  country;  it  would  introduce  manul'actures  into  Canada  as  rapidly  as 
they  have  been  introduced  into  thcNortlmrn  States;  and  to  Lower  CJanada  especially, 
where  water  priviiejics  and  labor  are  abundant  and  chcii]»,  it  would  attract  inann- 
factnrinp  capital,  enhance  the  value  of  jjrojxMty,  and  a<>ri('Mltural  products  and  fjjive 
remunerative  eni])]oynient  to  what  is  at  present  a  com])araTively  nonprodnciufj  P<'p- 
nlation.  The  valne  of  our  a<jrricultural  i)roduct8  would  be  raised  at  once  to  a  par 
witii  that  of  the  United  States,  while  a<;ricnltnral  implements  and  many  of  the  nec- 
essaries of  life  would  be  greatly  reduced  in  price.  The  v.alue  of  otir  timber  would 
also  be  enhanced  by  free  access  to  the  American  market,  where  it  commands  a  hiu;h 
price  but  is  subject  to  an  onerous  duty.    At  the  same  time  our  shipbuilders  at 


RECIPROCITY    STATEMENTS. 


66 


Quebec  and  ou  the  Oroat  Lakes  would  find  an  unliniitcd  market  in  all  the  jjorts  of  the 
American  Continent.  A  winiplo  and  eroiioniii'al  State  (Jovoriimont,  in  wliicli  direct 
re8|)onHil)ility  to  the  people  is  a  distin^fuiHliin;;  Icatiire,  would  be  HiibHtitiited  for  a 
syHtein  at  once  cnnilirouH  and  oxi)onHive;  and  in  place  of  war  and  the  alarnm  of  war 
with  a  neighbor,  there  would  be  peace  and  amity  between  tluH  country  and  the 
United  States.  Changing  a  subordinate  for  an  indepeu<lent  position,  we  would  take 
our  station  amonjj  the  nations  of  the  earth.  EuKlaud  is  onr])arout  State,  with  whom 
we  have  no  ccinality,  but  toward  whom  we  stand  in  the  simple  relation  of  obedience. 
Hut  as  citizens  of  tlio  I'nited  States  the  public  sorvicti  of  tlie  nation  would  be  open 
to  us,  a  Held  for  hij![li  and  honoralilo  distinction  on  which  we  and  our  posterity  might 
enter  on  terms  of  [»orfect  equality. 

This  manifesto  was  signed  by  men  who  afterwards  played  a  distin- 
fi'nislied  part  in  Canadian  politics.  It  was  received  caludy  by  the  Eng- 
lish press.    The  London  Times  of  October  31,  1849,  said: 

We  have  been  tauj^ht  wisdom  by  experience,  and  the  most  valuable  as  well  as  the 
most  costly  of  our  lessons  has  been  taui;li\-  by  the  barren  issue  of  a  conflict  with  a 
province  which  from  remonstrance  drifted  ,^o  rebellion,  and  crowned  rebellion  with 
independence.  We  slionld  not  go  to  war  for  the  sterile  honor  of  retaining  a  reluc- 
tant colony  in  subjection.  We  should  not  purchase  an  unwilling  obedience  by  the 
outlay  of  treasure  or  of  blood. 

THE  RECIPROCITY  TREATY  OF  1854. 

The  annexation  movement  died  away  when  Lord  Elgin  obtained  from 
Mr.  William  L.  Marcy  the  reciprocity  treaty  of  1854.  In  1847  the  Cana- 
dian Legislature,  whose  tariff"  had  down  to  about  that  time  been  framed 
in  England  for  the  supposed  benefit  of  the  English  manufacturer, 
removed  the  existing  differential  duties  against  goods  coming  from  the 
United  States  and  placed  them  on  the  same  footing  as  goods  coming 
from  England;  the  duties  on  United  States  manufactures  being  lowered 
from  12ft  to  7^  per  cent,  and  those  on  the  manufactures  of  Great  Britain 
being  augmented  from  5  to  7.J  per  cent. 

By  the  treaty  of  1854  the  following  articles  were  admitted  free  of  duty 
between  the  two  countries : 


Grain,  flour,  and  breadstuft's  of  all  kinds. 

Animals  of  all  kinds. 

Fresh,  smoked,  and  salted  meats. 

Cotton,  wool,  seeds,  and  vegetables. 

Fruits,  dried  and  undried. 

Hides,  furs,  skins  or  tails,  undressed. 

Butter,  cheese,  tallows 

Lard,  horns,  manures. 

Pitch,  tar,  turpentine,  ashes. 

Timber  and  lumber  of  all  kinds,  round, 

hewn,   and    sawed,'   manufactured    in 

whole  or  in  part. 
Rice,  broom  corn,  and  bark. 
Gypsnm,  ground  or  unground. 
Hewn  or  wrought  or  unwronght  burr  or 

grindstones. 
Unmanufactured  tobacco. 


Fish  of  all  kinds. 

Products  of  fish,  and  of  all  other  creatures 

living  in  the  water. 
Poultry  and  eggs. 
Stone  and  marble  in  its  crude  and  ou- 

wrought  state. 
Slate. 

Ores  of  metals  of  all  kinds. 
Coal. 
Firewood. 

Plants,  shrubs,  trees. 
Pelts,  wool.  ' 

Fish  oil. 
DyestuflFs. 

Fiax,  hemp,  and  tow,  unmanufactured. 
Rags. 


The  treaty  gave  to  the  inhabitants  of  the  United  States  fishing  privi- 
leges on  theCanadian  seaboard,  as  well  as  the  right  to  navigate  the  River 
St.  Lawrence  and  the  canals  of  Canada  as  freely  as  British  subjects,  and 
to  British  subjects  a  similar  right  to  navigate  Lake  Michigan  so  long  as 
the  privilege  to  navigate  the  Kiver  St.  Lawrence  should  continue.  No 
export  duty  was  to  be  levied  ou  timber  cut  on  American  territory  and 
floated  down  to  be  shipped  from  New  Brunswick.  The  treaty  was  to 
remain  in  force  for  ten  yea  is.  The  President  of  the  Utiited  States  issued 
a  proclamation  bringing  it  into  force  on  March  16,  1855.  It  applied  to 
Newfoundland  as  well  as  to  the  Canadian  Provinces,  viz.  Upper  and 
Lower  Canada,  Nova  Scotia,  New  Brunswick,  aud  Prince  Edward  Island, 

H.  liep.  2203 5 


G6 


KECIPROCITY   STATEMEiNTS. 


OBJECTIONS  FROM  BOTH   COUKTRIES. 


The  only  objection  to  the  treaty  from  Canada  was  that  it  did  not  fjive 
Nova  Scofia  vessels  access  to  the  American  coasting  trade,  and  that  it 
did  not  go  far  enongh  in  the  direction  of  establishing  commercial  inter- 
conrse  between  the  two  conn  tries,  the  Canadian  farmer  being  desirous 
of  seeing  free  interchange  of  mannfactnres  so  as  to  get  cheaji  r  factory 
goods  from  the  United  States  in  exchange  for  his  raw  products. 

The  objections  on  the  part  of  the  United  States  are  set  forth  in  the 
report  of  Mr.  E.  H.  Derby  to  the  Treasury  l)ei>artment,  IbOO.  The 
principal  objection  was  that  after  tlie  treaty  ha(l  gone  into  eifect  the 
Government  of  Upi)er  and  Lortcr  ('anada,  the  most  ])0])ulous  of  the 
Provi;ce8,  augmented  the  duties  on  manufactures  to  the  detriment  of 
American  factories.  The  Congressiomil  Committee  on  Commerce  also 
complained  of  discriminating  tolls  on  the  Welland  Cainil,  by  which 
goods  destined  via  Oswego  and  Ogdensburg  for  New  York  and  Jioston 
paid  higher  tolls  than  those  levied  on  goods  going  to  Quebec  or  Mon- 
treal. This  committee  recommended  the  adoption  of  a  zollverein  or 
commercial  union  between  the  two  countries  whereby  Canada  would 
have  been  ])laced  in  precisely  the  same  i>osition,  commercially  speaking, 
as  a  State  of  the  Union.  The  objections  raised  by  tliis  committee 
called  forth  a  reply  from  Sir  A.  T.  Gait,  the  Caruidian  linance  minister. 

The  Provinces  made  extraordinary  progress  under  tlie  treaty.  During 
tho  period  1850-1854  the  yearly  average  imjxnts  of  the  United  States 
from  the  Provinces  was  $7,000,000,  and  the  increase  during  these  five 
jv^arc*  58  per  cent.  During  the  reciprocity  period  the  yearly  average 
of  til''  imports  by  the  United  States  was  $2(5,300,000,  and  the  increase 
on  the  first  year  of  the  period  shown  by  the  last  year  was  201  per  cent. 
During  the  [)eriod  18(i7-1804,  the  treaty  having  come  to  an  end  in  1806, 
the  yearly  average  of  the  imports  by  the  Uniteil  States  from  Canada  was 
$36,700,000,  and  the  decrease  on  the  first  year  of  the  period  shown  by 
the  last  year  was  8  per  cent.  During  the  period  of  1850-1854,  before 
the  treaty,  the  yearly  average  of  the  imports  by  the  British  North 
American  Proviiu'es  from  the  United  States  was  $10,150,000,  and  the 
increase  during  the  i)erio(l  135  percent.  During  the  term  of  the  treaty 
the  yearly  average  of  the  imports  by  the  Provinces  from  the  United 
States  was  $20,000,000. 

^  INCREASE  OP  TRADE  DURING  THE   TREATY. 

To  put  it  in  another  shape,  during  the  twelve  years  taken  as  com- 
prising the  whole  jieriod  of  tin;  treaty  the  imports  of  Canada  from  the 
United  States  averaged  $2!>,000,000,'the  ex])orts  $20,000,000,  the  total 
trade  $55,00(>,000  per  annum,  and,  com])aring  these  figures  with  those 
of  the  period  of  1850-1854,  tliere  was  an  increase  in  the  average  annual 
trade  of  122  per  cent.  No  doubt  tlie  antislavery  w  ar,  18G1-1805,  crc  ted 
an  exceptioinUly  brisk  dennmd  in  the  United  States  for  Canadian  prod- 
ucts; on  the  other  hand,  the  war  lionntics  attracted  thousaiida  of 
Canadians  to  the  American  armies,  and  to  that  extent  reduced  the  pro- 
ducing ])Ower  of  the  country.  All  Canadians  agreed  that  the  treaty 
was  beneiicial  in  the  highest  degree  in  the  Provinces.  A  report  of  the 
committee  of  the  Caimdian  jirivy  council  (February  19,  1804),  which 
■was  intended  to  rouse  the  Pritish  («overnnuMit  to  do  something  to  pre- 
vent the  abrogation  of  the  treaty,  began  as  follows : 

It  would  he  iiiiiniMsil)lo  to  oxpross  in  ll>rnn'8  with  niiy  aj)itroaoli  to  accuracy  the 
•xteut  to  which  the  t'lKJUtica  of  ci'iuuieicittl  iuteicourswcipntuil  l>y  tUo  reciprocity^ 


RECIPROCITY    STATEMENTS. 


m 


5om- 

the 

total 

liose 

I  null 

ted 

liod- 

Ih  of 

Ipro- 

'iity 

the 

liich 

Ipre- 

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treaty  have  contributed  to  the  wo.iltli  and  prosperity  of  this  Province;  and  it  would 
be  dilticult  to  exaggerate  the  importance  which  the  peo))lo  of  Canada  attacli  to  the 
continued  enjoyni'^nt  of  these  facilities.  Nor  is  the  subject  entirely  <lcvoid  of  polit- 
ical significance.  Tinder  tlie  beneficent  operations  of  self-government  whicli  the 
later  policy  of  the  Mother  Country  has  accorded  to  Canada,  in  coninmn  with  other 
colonies  possessing  representative  institutions,  combined  with  the  ad  van  tnges  secured 
by  the  reciprocity  treaty  of  an  unrestricted  conuiicrce  with  our  n<'artst  neitilibors 
in  the  natural  ])roductious  of  the  two  countries,  all  agitation  for  organic  changes  has 
ceased,  all  dissatisfaction  with  the  existing  political  relations  of  the  Provinces  has 
aisappeared. 

The  concluding  words  refer  to  tlie  melting  away  of  the  aunexatioii 
moveuieut  amid  the  prosperity  llowiug  from  reciprocity.  The  report  of 
the  couimittee  went  on  to  speak  of  "the  conne<!tion  whicli  is  usiuiily 
found  to  exist  between  the  nuitorial  prosperity  and  the  political  conr^'vt- 
ment"  of  a  country,  tuid  hinted  that  if  the  treaty  were  not  rer  •■»•( 
annexation  might  lift  its  head  again.  The  annexationists,  it  mi  .u  <o 
added,  used  to  say  that  the  Southern  Democrats  h;ul  granted  the  'ivaty 
in  order  to  quench  the  annexation  movement,  being  averse  to  seef  ,  tiie 
North  reenforced  by  the  addition  of  i^rovinees  which  long  before  had 
repudiated  slavery. 

EFFORTS   TO   RENEW   THE   TREATY. 

As  the  period  of  the  natural  existence  of  the  treaty  drew  to  an  end, 
the  British  minister  at  Washington,  at  the  instance  of  Canada,  made 
every  effort  to  secure  its  prolongation.  (Janadian  ministers  visited 
Wasliingtoii  aiul  offered,  while  tidmitting  American  natural  products 
free,  to  admit  also  a  large  line  of  American  iminnfactures,  and  to  allow 
Congress  to  tax  Canadian  natural  products  at  the  frontier  in  order  to 
I)ut  the  American  fanner  on  an  etpiality  with  the  Cantulian,  who  had 
no  internal  revenue  orotlier  war  taxes  to  pay,  and  conseipiently  could 
raise  lield  ])roducts  for  a  lower  cost.  They  also  oifered  the  United  States 
a  sort  of  Joint  control  over  the  canals  of  Ctuiada.  But  on  January  IH, 
1805,  notice  was  given  by  the  United  States  Government  of  its  inten- 
tion to  abrogate  the  treaty  on  the  ground  "  that  it  was  no  longer  for  the 
interests  of  the  United  States  to  continue  the  same  in  force,"  and  all 
attem[)ts  at  arranging  a  piolongation  came  to  an  end  in  February,  180(5, 
the  treaty  expiring  on  March  17. 

TROUBLES  OVER  THE  FISHERIES. 

The  treaty  had  removed  the  3-mile  limit  inijiosed  by  the  convention 
of  1818  and  given  to  United  States  lishernu'n  libcity  to  take  all  kinds  of 
tish  along  the  shores  and  in  the  bays  aiul  harbors  of  the  l'r()vinccs 
of  Ui»i)er  Canada  and  Lower  (Janada,  Nova  Scotiti,  New  Hrnnswick, 
and  J'riuce  lCdwar<l  Island,  iMtd  adjacent  islands,  with  permission  to 
land  for  conntu'rcial  purposes  and  for  drying  their  nets,  curing  their 
tish,  etc.  The  salnuju,  shad,  and  ri\'er  iisheries  were,  however,  reserved 
exdusiv^ely  for  British  subjecls.  Similar  liberties,  with  similar  reserva- 
tions, were  given  to  all  liritish  subjects  on  the  eastern  seacoasts  of  the 
United  States  north  of  the  thirty-sixth  i)arallel  of  luuth  liititude. 

Shortly  after  the  tretity  was  rejiealed,  considerable  friction  arose  over 
the  exclusion  of  Anu'rican  fishermen  from  the  .'{mile  limit  and  the  com- 
mercial privileges  referred  to.  The  Canadian  Covernment  i)liu'ed 
ertiisers  in  tlu^  gulf,  vvhi«;h  were  reenforced  by  British  men-of-war. 
This  condition  of  affiiirs  cante  to  an  end,  however,  on  the  conclusion  of 
the  Washington  treaty  of  1871.  iulmitting  Canadian  fish  free  info 
United  States  pints  in  consideration  of  the  fishery  privileges  being 
again  extended  to  United  States  lishcrmeu.    It  will  be  remembered 


68 


RECIPROCITY   STATEMENTS. 


also  that  the  rTalifiix  commission  awarded  Canada  and  Newfoundland 
the  sum  of  $5,500,000  as  fiii'ther  compensation  for  grantinfj  the  use  of 
its  inshore  fisheries  and  coasts  during  the  existence  of  the  treaty  of 
1871. 

In  reply  to  complaints  by  the  Canadian  Govennnent  that  the  Wash- 
ington treaty  did  not  do  enough  for  Canadian  fishermen  in  returi-  for 
the  privih'ges  accorded  to  American,  the  British  Government  (dispatch 
of  Lord  Kimberley,  Secretary  of  State  for  the  colonies,  to  the  Governor- 
Geneial,  Juno  17,  1871)  implied  that  Canada  had  been  harassing  the 
American  fishermen,  with  the  object  of  worrying  Congress  into  remov- 
ing the  duties  on  Canadian  fish. 

"Canada,"  said  Lord  Kimberley,  '^can  not  reasonably  expect  that  this 
country  (Great  Britain)  should  for  an  indefinite  period  incur  the  con- 
stant ri.sk  of  serious  misumlerstanding  with  the  United  States,  imperil- 
ing, perhaps,  the  peace  of  the  whole  En)pire,  in  order  to  endeavor  to 
force  the  American  Government  to  change  its  commercial  policy." 

COMMERCIAL   UNION  PROPOSED. 

Between  1866  and  1871  various  propositions  were  made  by  the  Domin- 
ion Government,  looking  to  a  new  reciprocity  treaty.  In  1870  Mr.  L.  S. 
Huntington,  a  prominent  Liberal  member  of  the  Dominion  Parliament, 
afterwards  a  minister  of  the  Crown,  moved  a  resolution  in  favor  of  com- 
mercial union — that  is,  absolute  free  intercourse  in  all  kinds  of  goods, 
natural  or  manufactured,  with  the  United  States — but  it  was  voted 
down.  In  the  debate  an  editorial  from  The  London  Times  was  read,  to 
the  (effect  that  if  Canada  did  enter  into  a  commercial  union  with  the 
United  States,  involving  taritf  discrimination  against  British  manufac- 
tures, (ireat  Britain  would  not  object. 

In  1S74,  the  British  minister  at  Washington  and  Mr,  George  Brown,  of 
Toronto,  acting  for  the  Canadian  Government,  arranged  a  commercial 
treaty,  but  it  was  not  i)assed  by  the  United  States  Senate.  When 
Canada  ado]tted  a  protective  tarilf  in  1879,  Sir  John  Macdonald  let  it 
be  understood  that  one  of  his  main  objects  was  to  secure  reciprocity. 
A  resolution  of  his  read  that  the  Canadian  tariff,  "moving  as  it  ought 
to  do  in  the  direction  of  a  reciprocity  of  tariff's  with  our  neighbors,  so 
far  as  the  varied  interests  of  Canada  may  admit,  will  greatly  tend  to 
procure  for  this  country  eventually  reiiiprocity  of  trade."  Further- 
more, he  ])laced  an  otter  of  reciprocity  in  certain  natural  products  in 
the  protective  tarilf,  a  plan  adopted  by  the  Government  prior  to  1854. 

In  1887-88,  Mr.  Josejjh  Chamberlain,  now  colonial  secretary,  and  Sir 
Charles  Tujjper.  baronet,  while  negotiating  a  fishery  treaty,  whicii  was 
defeated  in  the  United  States  Senate,  urged  the  consideration  of  an 
agreement  for  re<!iprocal  trade,  but  the  United  States  representatives 
declined  to  discuss  the  subject. 

At  the  Canadian  elections  of  1801,  Sir  John  Macdonald  went  to  the 
polls  with  the  announ(U'nient  that  he  was  going  to  obtain  a  renewal  of 
the  reciprocity  treaty  of  1854-1866,  and  later  on  (colleagues  of  his  had 
interviews  with  Mr.  Blaine,  which  came  to  nothing.  While  they  were 
anxious  to  obtain  rcH'iprocity  in  natural  products,  they  wero  averse  to 
recij)roc:ify  in  manufactures,  ostensibly  on  the  ground  that  free  trade 
in  manufactures  with  the  United  States  would  necessitate  taritV  dis- 
crimination against  the  manufactures  of  Great  Britain,  and  thus  w^eaken 
the  i)olifical  tie  with  her.  Probably,  however,  their  real  objection  to 
recii)ro('ity  in  inaniiractures  was  that  Canadian  manufacturers  could 
not  «'omp(^le  with  those  of  the  United  States,  and  Sir  John's  ministry, 
like  the  ministry  in  power  to  day,  was  a  manufacturer's  cabinet, 


RECIPROCITY   STATEMENTS. 


69 


PLATFORM   OF   THE   LIBERAL   PARTY. 

In  1888  the  Liberal  p.arty  of  Canada  beg.an  to  agitate  for  what  it 
called  nnrestricted  reciprocity,  i.  e.,  a  wide  measure  of  free  trade 
between  the  two  countries  in  manufactures,  as  well  as  in  natural  piod- 
ucts.  It  was  to  counter  this  propositi<m  that  Sir  John  Macdonald,  in 
1891,  opened  negotiations  with  Mr.  lUaine.  In  18!K{,  the  Liberals,  in 
convention  at  Ottowa,  adopted  the  following  platform  on  the  reciprocity 
question,  which  is  cheir  platforu)  to  day: 

That  haviug  regard  to  the  prosperity  of  Canada  and  the  United  States,  as  adjoin- 
ing countries  with  many  nintnal  interests,  it  is  desirahle  that  theie  shouhl  ho  the 
most  friendly  rei.itions  and  hroad  and  liberal  trade  intercourse  between  tliein ;  tbat  the 
interests  alike  of  the  Dominion  and  of  the  Empire  would  he  materially  advanced  by 
the  estahlishing  of  such  relations;  that  the  ])eri()d  of  the  old  reciprocity  treaty  was 
one  of  marked  prosj)erity  to  the  British  North  American  colonies;  that  the  pretext 
under  which  the  Government  appealed  to  the  country  in  1891,  respecting  negotia- 
tions for  a  treaty  with  the  United  States  was  misleading  and  dishonest  and  intended 
to  deceive  the  electorate;  that  no  sincere  etfort  has  been  made  to  obtain  a  treaty, 
hut  that,  on  the  contrary,  it  is  manifest  that  the  present  (Jovernment,  controlled  aa 
they  are  by  monopolies  and  combines,  are  not  desirous  of  securing  such  a  treaty; 
that  the  (irat  step  toward  ohtaining  the  end  in  view  is  to  ])la('  a  party  in  i)owor 
who  are  sincerely  desirous  of  promoting  a  treaty  on  terms  honor;ible  to  both  coTin- 
tries;  that  a  fair  and  liberal  reciprocity  treaty  would  develop  the  great  natural 
resources  of  Canada,  would  enormously  increase  the  trade  and  commerce  hetween 
the  two  countries,  would  tend  to  encourage  friendly  relations  between  tlie  two  ])eo- 
ples,  would  remove  m.auy  causes  wliich  have  in  the  past  )»rovoke(l  irritation  and 
trouble  to  the  Governments  of  both  countries,  and  would  ])romote  tliose  kindly 
relations  between  the  Empire  and  the  Repuhlic  which  atlord  the  hest  guaranty  for 
peace  and  prosperity;  that  the  Liberal  party  is  prepared  to  enter  into  negotiations 
with  a  view  to  obtaining  such  a  treaty,  including  a  well-considered  list  of  manufac- 
tured articles,  and  we  arc  satisfied  that  any  treaty  so  arranged  will  receive  the 
assent  of  Her  Majesty's  Government,  without  whose  approval  no  treaty  can  he  made. 


COMMERCIAL   INDEPENDENCE   OF   CANADA. 

The  Liberal  i)arty  also  favors  the  commercial  indei)endence  of  Canada, 
i.  e.,  the  exercise  by  Canada  of  the  treaty-making  power  in  her  own 
interests.  As  matters  stand  at  present,  Canada  can  not  negotiate  with 
the  United  States  or  any  other  foreign  country  except  with  tlic  appro''al 
of  the  British  Government  and  through  its  dii>loniatic  agents.  Further- 
more, Canadi'  can  not  make  a  commercial  treaty  with  a  foreign  nation 
without  taking  in  Britain,  who  does  the  negotiating,  an<l  extending  her 
concessions  not  oidy  to  Britain  but  to  countries  to  which  Mritain  has 
fit vored -nation  arrangements  covering  the  colonies.  And  Britain  must 
lil  wise  participate  to  the  full  in  the  tariti' concessions  made  by  foreign 
coii'ttries  to  Canada.  Under  such  conditions,  of  course,  it  is  dillicult 
to  t  eat  with  foreign  nations.  Why  should  Americans,  for  instance, 
have  to  grant  to  Britain  everything  they  are])re|>ared  to  give  to  Canada 
in  return  for  special  concessions  from  Caiuida,  Britain  giving  non'  in 
return?  The  case  was  well  stated  by  Congressman  Bowman,  of  Massa- 
chusetts, in  the  House  of  Hepresentatives,  June  1,  1880: 

We  in  tlie  United  States  [ho  said]  made  fish  free  to  Canadians  hcanse,  as  a  con- 
Bi<loration,  Me  received  the  right  of  lishing  in  Canadian  waters.  Ca;;  '■.ngland,  or 
France,  Qeriimny.  or  tl.e  Hawaiian  Islands  (!ome  in  ami  say  that  we  aie  therefore 
bound  to  niitke  fish  free  tt)  themf  That  can  not  be  maintained  for  a  moment.  We 
reply  to  tiioso  countries  that  when  they  can  do  for  us  exactly  whiit  Canada  'Iocs,  or 
us  much  as  (Canada  does,  they  will  have  claims  on  our  consideration,  but  until  then 
they  have  none. 

Britain  herself  makes  treaties  with  foreign  countries  that  do  not 
apply  to  or  include  Cana«la,  but  ('anada  is  not  at  liberty  to  rever.se  the 
process  and  make  treaties  that  do  not  include  Britain.    Brituiu  allows 


■!i  il 


'.'1: 

'"5 


70 


RECIPKOCITY    STATEMENTS. 


f 


■;|:!j 


^\jli 


■"li: 


Canada  and  the  other  self-governinj^-  coh^nios  to  levy  the  same  duties 
upon  her  ji'oods  asui)on  tht;  j^oodsof  f'.)reij;n  countries.  Wliat  Liberals 
desire  is  that  Canada  should  be  permitted  to  enjoy  the  prerogatives  of 
a  sovereij>n  nation  in  eommercial  matters,  so  that  she  may  deal  directly 
with  foreign  markets  and  make  such  arrangements  with  th<Mn  as  may 
suit  the  interests  of  her  own  i)eople  without  reference  to  the  efioct, 
which  at  most  would  be  triHing,  upon  tlu'  interests  of  theBritisli  manu- 
facturer. Mr.  Chand)erlain  has  hinted  that  tariif  discrimination  against 
British  goods,  which  would  be  involved  in  the  connnercial  inde])eiidence 
of  Canada,  would  lead  Englishmen  to  sever  the  political  tie,  ami  the 
threat  is  used  by  the  Tory  i)arty  at  Ottawa  to  discredit  the  Liberal 
proposition.  At  the  same  time,  there  is  no  doubt  that  the  feeling  iu 
favor  of  commercial  independence  is  growing 


'y- 


THE   ATTITUDE   OF  NEWFOUNDLAND. 

To  complete  this  rough  sketch  of  the  history  of  the  reciprocity  ques- 
tion, it  may  be  well  to  say  a  word  about  Newfoundland.  I^ewfound- 
land  does  not  belong  to  the  Canadian  Confederation,  but  is  a 
self-governing  colony  by  herself. 

In  a  speech  in  Maine,  before  he  became  Secretary  of  State  in  Mr. 
Harrison's  Cabinet,  Mr.  Blaine  laid  down  the  principle  that  theBritisli 
colonies  in  ^Torth  America  should  not  be  allowed  to  enjoy  the  commer- 
cial advantages  of  American  statehood  while  retaining  their  European 
allegiance.  JUit  he  was  afterwards  willing  to  make  an  exception  of 
Newfoundland  to  some  extent.  The  treaty  lie  arranged  with  the  New- 
fouudland  Government  through  Sir  Julian  Pauncefote  in  18!M)  i)rovided 
for  the  free  idmission  into  the  Tnited  States  of  dry  cod,  herring,  lob- 
sters, cod  and  seal  oil,  seal  skins,  salmon  trout,  etc.,  in  return  for  the 
free  adnussion  into  Newfoundland  of  implements,  printing  presses,  gas 
engines,  raw  cotton,  and  crushing  mills  from  the  United  States.  The 
treaty  also  established  maxinmm  rates  which  were  not  to  be  exceeded 
ou  American  Hour,  pork,  bacon  and  hams,  beef,  Indian  meal,  salt,  ker- 
osene, and  other  articles.  Newfoundland  was  also  to  concede  to  Amer- 
ican fishermen  the  right  to  touch  and  trade  and  procure  supj)lies  in 
Newfoundland. 

Mr.  Blaine's  object  apparently  was  to  extend  American  trade  and 
also  to  get  around  the  prohibitions  imposed  ui)on  American  fishermen 
by  Canada  and  Newfoundland  under  article  1  of  the  treaty  of  1818. 
Under  their  literal  interpretation  of  aiticle  1  the  colonies  prohibit 
American  fishing  vessels  from  landing  on  their  coasts  except  to  seek 
shelter,  obtain  woo<l  and  water,  and  make  repairs.  But  fresh  Itait  is 
necessary  to  a  successful  trip  after  mackerel  or  after  cod  on  the  Banks; 
it  is  also  convenient  for  a  Boston  or  Gloucester  vessel  to  be  able  to 
transship  her  catch  somewhere  near  the  scene  and  hniry  back  to  her 
fishing;  ships'  stores  and  ne  for  the  bait  have  to  be  rejdenished,  new 
sails  may  be  recpiired,  illness  may  disable  nuMubers  of  tiie  crew  and 
their  ]»laces  must  be  filled.  For  these  aiul  other  n'asons  commercial 
privileges  on  the  coast  of  Canada  and  Newfoundland  are  desirable. 

Mr.  lilaine's  design  was  to  obtain  these  privileges  from  Newfouml- 
land;  they  can  be  obtained  in  Canada,  but  only  on  paymeiit  of  a 
tonnage  tax.  which  American  fishermen  consider  unjust  under  the  cir- 
cumstancies. 

Tlu^  treaty  with  Newfoundland  was,  however,  pigeonholed  by  Lord 
Salisbury  at  the  instance  of  the  Government  at  Ottawa.  It  pointed 
(uit  to  Lord  Salisbury  that  a  separate  arrangement  with  Newfoundlaiul 


f 


RECIPROCITY    STATEMENTS. 


71 


would  create  discontent  in  the  Canadian  vseaboard  Provinces  and  prac- 
tically destroy  the  Canadian  contention  under  the  treaty  of  1818; 
Canadian  tishcrnien  would  be  payinj;-  high  duties  under  the  American 
tariff,  while  the  flshernien  of  Newfoundland  would  be  receiving  special 
compensation  in  the  shape  of  removal  of  duties  for  their  abandonment 
of  the  literal  interpretation  of  article  1,  to  which  both  Newfoundland 
and  Canada  had  hithert(»  been  pledged.  Newf(mndland  was  annoyed 
at  the  uiiiuie  of  the  treaty  through  Canada's  interference,  and  for  a 
short  time  a  tariff  war  was  carried  on  between  the  two  colonies. 


EECIPROCITY  IS   OF   GREAT  IMPORTANCE  TO   NEWFOUNDLAND. 

The  fishermen  of  France,  who  use  the  French  Islands  of  Miqueloii  as 
their  base  of  operations  for  pursuing  the  Bank  cod  fishery,  receive  large 
bounties  from  the  French  treasury  on  the  dry  cod  which  they  sell  on  this 
side  of  the  Atlantic  and  also  on  the  dry  cod  they  sell  in  European  mar- 
kets. The  Newfoundlanders  can  not  compete  abroad  with  the  bounty- 
fed  cod  of  France.  The  United  States  would  uiuler  reciprocity  be  the 
best  market  for  all  their  fish.  It  is  also  the  best  market  for  Newfound- 
land minerals. 

In  the  treaty  of  commerce,  arranged  by  Sir  Edward  Thornton  and 
Mr.  r>rown  in  1874,  it  was  proposed,  among  other  things,  that  there 
should  be  reciprocal  trade  in  certain  manufactured  articles  as  well  as  in 
certain  natural  products,  but  it  was  provided  that  similar  manufactures 
coming  from  Britain  should  also  be  admitted  free  into  Canada;  that  is, 
there  was  to  be  no  discrimination  against  Britain.  The  manufactures 
selected  for  free  exchange  were,  however,  for  the  most  part,  manufac- 
tures in  which  Britain  could  not  compete  successfully  with  the  United 
States  in  the  Canadian  market.    The  list  was  as  folloN/s: 

Agricultural  imi)lcmeuts,  axles,  boots  and  shoes,  boot  and  shoe  mak- 
ing machines,  buffalo  robes,  cotton  grain  bags,  cotton  denims,  cotton 
jeans,  unbleached;  cotton  plaids,  cotton  ticking,  (^ottonade,  unbleached; 
cabinet  ware  and  furniture,  (uirriages,  carts  and  wagims,  fire  engines, 
felt  covering  for  boilers,  gutta-i)ercha  belting  and  tubing,  bar  iron,  hoop, 
l)ig,  ])uddlcd,  rod,  sheet,  and  scraj)  iron;  iron  nails,  spikes,  bolts,  etc.; 
iron  castings,  india-rubber  belting  and  tubing;  locomotives,  lead,  sheet 
or  pig;  leather  harness  and  saddlery;  mill,  factory,  and  steamboat  en- 
gines and  machines;  manufactures  of  marble,  stone,  slate,  or  granite; 
manufactures  of  wood,  or  of  wood  along  with  metal  materials;  mangles, 
washing  machines,  wringing  machines,  and  drying  machines;  ]u'inting 
paper  for  newspapers,  pai)er-making  machines,  printing  type  i)resses 
and  folders,  pajter  cutters,  rolling  machines,  page-numbering  machines, 
stereotype  and  eledrotype  apparatus;  refrigerators;  railroad  cars, 
carriages,  and  trucks;  satinets,  or  wool  and  <!otton;  steam  engines; 
steel,  rod  or  cast,  and  steel  i»lates  and  rails;  tin  tubing  and  piping; 
woolen  tweeds;  water  wheels,  machines,  ami  apparatus. 

In  speaking  in  the  Canadian  Senate  upon  this  abortive  treaty,  Mr. 
Brown  said: 

These  artii'les  wore  selected  with  a  triple  object;  the  first  vrna,  that  they  should 
be  artii'les  of  coiiiinoii  dai.'y  use  iiinoii}?  the  people  or  afl'ect  tl'.e  itrosecutiou  of  our 
leading  industries;  the  second,  that  they  shouhl  be  of  such  a  character  as  to  be  dif- 
cult  to  Huiugglo  across  Ihe  lines  and  easy  of  iilentification  as  a  genuine  i)r()dnctiou  of 
Canada  or  the  United  States;  the  third,  that  they  should  hi',  as  far  as  jmssilde,  the 
production  of  branches  of  in<lus(ry  natural  to  Canada  or  the  United  States,  and  in 
which  a  considerable  iutortraOic  Ijotwceu  the  two  conutriua  might  reasonably  be 
expected. 


72 


RECIPROCITY    STATEMENTS. 


A  sliding  scale,  by  which  the  existinp;  custom  duties  were  to  be  grad- 
ually reduced,  was  provided  for  in  order  to  give  the  mauutacturers  some 
time  for  preparation  for  the  change. 

The  Liberal  party  would  be  prepared  to  negotiate  a  treaty  with  the 
United  States  on  somewhat  similar  lines,  if  it  should  be  returned  to 
power  at  the  approaching  elections.  It  is  safe  to  say  that  it  would  be 
prepared  to  negotiate  on  even  broader  lines.  It  fully  realizes  that  the 
proposition  of  the  present  Government  at  Ottawa  for  a  reciprocity  in 
natui  ill  products  only  is  scarcely  fair  to  the  United  States,  for  most  of 
the  gain  would  be  to  Canada;  that  any  equitable  arrangement  must 
permit  the  United  States  to  pay  in  factory  goods  for  the  natural  prod- 
ucts and  raw  material  coming  from  Canada.  Moreover,  such  a  treaty 
would  be  beneficial  to  the  farnu'rs,  lumbermen,  lishernu^n,  and  miners 
of  Canada  in  providing  them  with  cheaper  factory  goods  than  they  cau 
now  obtain  in  Canada. 

EFFECT  OF  THE  WILSON  LAW  IN  CANADA. 

When  the  Wilson  bill,  reducing  the  duties  on  certain  Canadian  farm 
products,  was  adoi)ted  Mr.  Haycock,  the  leader  of  the  farmers'  move- 
ment (Patrons  of  Industry)  in  Ontario,  said  that  "Mr.  Wilson  had  done 
more  for  the  Canadian  farmer  than  had  ever  been  accomplished  for  him 
by  the  Government  of  Canada." 

For  many  Caruidian  farm  products  the  United  States  is  the  only 
available  market.  That  is,  as  regards  these  artic^les,  the  United  States 
is  a  monopolist  buyer,  and  a  monopolist  buyer,  like  a  monopolist  seller, 
can  fix  his  own  price.  Whatever  the  United  States  duty  nuiy  be  on 
such  articles,  therefore,  the  Canadian  farmer  has  to  pay  it.  Sir  John 
Macdonald  used  to  illustrate  this  by  taking  the  case  of  two  farmers, 
one  on  each  side  of  the  boundary  line.  The  farmer  on  the  American 
side,  getting  his  barley  to  Albany,  Oswego,  and  New  York  free  of  duty, 
invariably  got  a  higher  price  than  his  neighbor  on  the  Canadian  side  of 
the  road  by  the  amount  of  the  duty.  He  also  used  to  point  out,  as  in 
his  speech  in  the  Canadian  Parliiiment  on  the  Washingt(m  treaty,  that 
Canadian  fishermen,  for  a  like  reason,  got  just  whatever  the  I^oston 
and  Gloucester  buyers  chose  to  give  them  for  their  fresh  lish.  They 
had  no  other  market  for  their  fresh  mackerel,  etc.,  and  were  obliged, 
therefore,  to  i)ay  the  duty  on  entering  it. 

Since  the  adoption  of  the  INIcKinley  agricultural  schedule  in  1890, 
efforts  have  been  made  t^o  find  a  market  in  England  for  Canadian  farm 
products  that  used  to  g'^  to  the  United  States,  but  for  such  commodities 
I^^ngland  is  only  a  second  best  market,  and  the  figures  which  go  to  show 
that  the  exports  of  Canadian  farm  ])roducts  to  her  are  iiuTcasing,  do 
little  more  than  testify  that  trade  is  being  diverted  from  its  natural 
channel  to  the  detriment  of  the  Canadian  faimer.  Efforts  have  also 
been  made  to  establish  a  trade  with  Australia,  and  a  b<nius  of  flLM ),()()() 
a  year  is  gi\cn  to  a  steamslii))  line  running  between  Jiritish  Columbia 
and  Sydney,  New  South  Wales.  Australia,  however,  is  too  far  off".  Last 
year  only  $<5,(M)()  Avorth  of  Canadian  farm  ])roduets  Avere  exported  to  that 
colony.  Ijord  Farrer,  fiunierly  ])ermanent  secretary  of  the  Government 
Board  of  Trade  in  liJngland,  and  an  expert  on  colonial  trade,  states  the 
matter  thus : 

Canada  <aii(l  England  aro  soparated  by  tlio  Atlantic;  Canada  and  tlio  TJnitod  States 
are  difitingiiislied,  rathiT  tlian  Hoiiaratcd  by  a  bridged  and  navigable  river  and  by  an 
imaginary  line.  Trade  between  England  and  Canada  lias  to  overcDnie  natural  dilli- 
cnlties;  trade  between  Canada  and  the  United  States  would  be  nnclieeked  but  lor 
artilicial  difficultica.     Eveu  now,  Canadian  trade  with  the  United  tStates  increases 


RECIPROCITY   STATEMENTS. 


73 


more  rapidly  than  her  trado  with  the  United  Kingdom.  The  pco]>le  of  Canada  and 
of  tlie  United  States  are  similar  in  race,  in  language,  and  in  habits,  and  are  becoming 
more  so  daily. 

CANADIAN   TRADE   WITH   THE   UNITED   STATES. 

The  fif^ures  bear  out  Lord  Farrer's  view.  The  aggregate  trade  of 
Canada  in  1894:-95  with  tlie  United  States  was  greater  than  her  aggre- 
gate trade  witli  Britain,  notwithstanding  ti.at  tlie  United  States  taxee. 
Canadian  i)roducts  while  England  admits  them  free,  and  notwithstand- 
ing also  that  for  tifty  years  England  has  been  pouring  loans  into  Canada, 
the  principal  of  wliich  conies  in  the  form  of  manufactures  and  the  interest 
on  which  is  remitted  to  England  in  the  shape  of  natural  products.  The 
exports  to  England  last  year  were  $01,900,000 ;  to  the  United  States 
$41,300,000.  The  imports  from  Britain  were  $31,000,000;  from  the 
United  States,  $r)4,<)00,000. 

Had  trade  between  Canada  and  the  United  States  been  as  free  as 
between  Canada  and  Britain,  both  exports  to  and  imports  from  the 
United  States  would,  of  course,  have  been  indelinitely  larger.  Tiie 
total  foreign  trade  of  Canada  last  year  was  $219,000,(>90  so  that  her 
trade  with  the  United  States  is  over  40  ])er  cent  of  the  whole. 

In  1888  and  1889,  just  prior  to  the  McKinley  Act,  the  exports  to  the 
United  States,  notwithstanding  the  duties,  were  higher  than  the  exports 
to  the  United  Kingdom.  The  United  States  is  "out  of  sight"  the  best 
market  for  Canadian  minerals.  Last  year  the  total  export  of  Canadian 
minerals  amounted  in  value  to  $0,980,000,  of  which  those  sent  to  the 
United  States  constituted  $0,270,000. 

A  royal  commission  appointed  by  the  Government  of  the  Province  of 
Ontario  to  consider  the  best  means  of  developing  the  mineral  resources 
of  the  Province,  reported  strongly  in  favor  of  free  trade  i'>  minerals 
with  the  United  States.  In  fact,  it  as  much  as  said  that  without  free 
trade  with  the-United  States  there  could  be  no  mineral  development  to 
speak  of  in  Canada.  The  United  States  is,  or  would  be,  the  best  mar- 
ket for  Canadian  tish,  lumber,  horses,  sheep,  lambs,  eggs,  barley,  wool, 
beans,  hay,  potatoes,  fruit,  iioultry.  If  it  were  free,  Catiadian  live  cat- 
tle would  go  to  Chicago,  Buffalo,  and  Boston,  and  Canadian  cheese, 
which  now  goes  almost  exclusively  to  England,  would  find  sale  in  the 
large  cities  of  the-  Northern  States.  Manitoba  hard  wheat  could  then 
be  sold  at  the  neighboring  mills  at  Minneapolis,  instead  of,  as  now, 
having  to  go  by  rail  2,000  miles  to  the  Atlantic  seaboard,  and  thence  to 
England. 

Mr.  Martin,  member  of  I'arlianu'nt  for  WinuiiR^g,  said  in  a  recent 
8])eech  in  Parliament  that  if  tra<le  with  the  United  States  were  free, 
Manitoba  would  be  able  to  raise  a.  large  barley  crop  for  export,  which, 
ripening  earlier  than  wheat,  would  be  less  exposed  to  the  risk  of  the 
frosts  which  sometimes  damage  the  wheat  crop.  British  Columbia 
would  benefit  ecpially  by  ch)ser  trade  relations;  indeed,  as  it  is,  the 
bulk  of  her  export  trade  is  done  with  the  neighboring  Pacific  States. 

EMIGRATION  OF  CANADIAN  POPULATION. 


It  is  believed  also  by  most  Canadians  that  by  thus  allowing  the 
people  of  Canada  to  turn  their  labor  and  natural  resources  to  the  best 
account  reciprocity  with  the  United  States  would  tend  to  check  the 
exodus  of  population.  According  to  the  United  States  census,  there 
were  980,000  natives  of  Canada  and  Newfoundland  iu  the  Union  in 


Ijl 


74 


RECIPROCITY    STATEMENTS. 


I8JM).  Fully  9()0,(U>0  of  those  muHt  have  been  natives  of  Canada.  By 
the  Canadian  census  of  1891,  the  i)oi)ulati<)n  of  Canada  was  4,800,000, 
of  whom  4,200,000  were  native  born.  Tluis  nearly  L*5  per  cent  of  the 
native  Canadian  i-ace  is  in  the  United  States.  The  United  States  ia 
also  absorbing  persons  of  ICuropean  birth  who  settle  in  Canada  for 
a  while  and  then  cross  the  line.  They  are  not  credited  to  Canada  by 
the  United  States  census,  but  to  the  countries  of  their  birth,  although 
they  represent  a  heavy  drain  upon  Canadian  natioiuil  life.  It  is  esti- 
mated that  there  must  be  500,000  such  persons  in  the  United  States. 
It  is  not  to  be  sui)i)osed  that  reiM[)rocity  would  absolutely  stop  the 
exodus,  but  it  would  certainly  diminish  it.  There  will  always  be  a 
disposition  among  inhabitants  of  northern  climates  to  turn  their  faces 
to  the  sun. 

THE   NATIONAL  CONDITION   OF  TRADE. 

A  glance  at  the  map  is  sufficient  to  show  that  nature  designed  the 
two  countries  to  have  intimate  trade  relations.  A  line  <lrawn  from  the 
top  of  Minnesota  to  the  top  of  Mai?ie  includes  nearly  all  the  inhabited 
portion  of  Ontario  and  Quebec,  the  two  oldest  and  richest  provinces. 
Maine  projects  like  a  wedge  to  within  40  miles  of  the  Lower  St.  Law- 
rence, leaving  the  seaboard  provinces  within  the  New  England  area. 
Ontario  projects  like  a  wedge  400  miles  into  American  territory.  It  and 
Quebec  are  se[)arated  from  the  seaboard  prt)vinces  by  a  stretch  of  bar- 
ren land  from  Manitoba  and  Lake  Superior  by  a  thousand  miles  of  rock 
and  muskeg,  while  Matntoba  in  turn  is  separated  from  British  Colum- 
bia by  the  Itocky  ]\Iountains.  The  Dominion  is  thus  broken  up  geo- 
grai)hically  into  four  blocks,  each  of  which,  if  left  alone,  would  And  its 
natural  market  in  the  States  adjoining  it  to  the  south.  Ontario  would 
not  deal  with  Nova  Scotia  or  Manitoba  so  nnicli  as  with  New  York, 
Pennsylvania,  Michigan,  Illinois,  and  Ohio,  which  contains  twenty  mil- 
lions of  customers  right  at  her  door.  She  can  talk  to  some  of  them  by 
telephone  and  reach  all  by  rail  or  water  in  a  few  hours.  Buffalo  has 
as  many  iidiabitauts  as  there  are  between  Lake  Superior  and  the  Rocky 
Mountains,  on  Canadian  soil;  Chicago  nearly  twice  as  many  as  there 
are  in  the  Canadian  seaboard  provinces.  Yet  in  order  to  get  trade, 
Ontario,  the  i)illar  of  Confederation,  is  sundered  from  those  rich  mar- 
kets and  saddled  with  gigantic  burdens  for  a  railway  to  Manitoba  and 
another  all  the  way  to  Cape  Breton.  It  is  much  the  same  with  the  sea- 
board provinces.  They  could  take  their  fish  and  other  produce  by  sea 
to  Boston  in  a  few  hours  and  exchange  it  for  cheap  manufactures. 
Instead  of  that  they  are  compelled  to  pay  a  duty  on  their  Hsh  and  farm 
products  on  entering  Hoston,  to  return  empty,  and  ])ro(uire  dear  manu- 
factures from  the  distant  markets  of  Montreal  and  Toronto,  which  buy 
little  from  them  but  canned  lobsters.  New  England  is  also  the  natural 
market  for  their  coal  and  iron. 

The  Conservative  party  adopted  protection,  so  it  said,  because  it 
was  unable  to  obtain  closer  trade  relations  with  the  United  States  and 
in  order  to  force  the  United  States  to  concede  them.  The  protectioinst 
interests  are  now  so  strong  politically  that,  to-day,  the  party  places 
prote(;tion  first  and  reciprocity  last. 


PROBABLE   BENEFITS   OF   A   RECIPROCITY   ARRANGEMENT. 

It  is  not,  perhaps,  within   my  province  to  enumerate  the  benefits 
which  the  United  States  would  obtain  from  closer  trade  relations  with 


RECIPROCITY    STATEMENTS. 


76 


Canada.    The  pi'incipal  imports  from  the  United  States  at  the  present 
time  are  as  follows: 


Live  animals. 

Indian  corn. 

Wheat,  corn  meal,  and  other  grains. 

Clocks. 

Cordage  and  twine. 

1  )nig8  and  dyes. 

Fancy  goods. 

Frnits. 

Glass  and  glassware. 

Hats,  caps,  and  bonnets. 

.lewelry. 

UrasH,  and  mannfactures  of. 

Gold  and  silver,  and  niiinul'actures  of. 

Le.'id,  and  nianulacturos  of. 

Oils  and  paints. 

Papc^r. 

Silk  manufactures. 

Tobacco. 

Wood  niauufa'ctnres. 

Books  and  periodicals. 

During  the  last  few  years  Canadian  imports  from  the  United  States 
have  grown,  while  those  from  Britain  have  fallen  off". 

The  imports  from  the  United  States  for  the  fifteen  years.  lSSl-1895, 
were  $752,(100,000;  the  imports  from  Britain  daring  the  same  period, 
$<)38,000,000. 

American  iron  and  steel  is  displacing  British  in  the  Canadian  market, 
and  there  is  a  growing  call  for  American  machinery  and  other  manu- 
factures, which  are  in  many  cases  better  adapted  than  llritish  to  Cana- 
dian conditions  and  re(]uirements.  With  a  liberal  re(;ii)rocity  treaty 
favoring  American  manufactures,  there  can  be  no  doubt  that  the  im])orts 
from  the  United  States  would  rapidly  increase,  to  the  benelit  alike  of 
the  Canadian  farmer  aud  the  American  artisan. 


Oats  and  rye. 
Buttons. 

Carriages. 

Coal  and  coke. 

Cotton,  and  niaiuifactures  of. 

]'21(M-tric  api>iiratns. 

Flax,  an<l  niannfactiircs  of. 

Furs. 

(jiutta-])er(dia,  manurattnreH  of. 

Raw  bides. 

I.eatlier,  and  niuiinractures  of. 

Copper,  and  manufactures  of. 

Iron  and  .st';cl,  and  numnfacturos  of. 

Musical  insU'umonts. 

Provisions. 

Seeds. 

Sugar. 

Watches. 

Woolen  manufactures. 


THE  PERCENTAGE  OP  DUTY  ON  THE  VALUE  OP  THE  GOODS, 

dutiable  and  free,  entered  for  ('onsum])tion  in  1 804-95  was  KJ.Ol).  The 
l)erceutage  of  duty  on  the  dutiable  goods  alone  entered  for  consumption 
was  a  fraction  over  30.  The  duty  on  nig  iron  is  $  I.-IS  per  long  ton  and 
the  Ottawa  government  gives  a  bonus  to  Canadian  furnaces  of  s^H.L'l. 
The  average  of  the  duties  on  iron  and  steel  goods  of  all  kinds  is  2(5 
per  cent.  Implements  are  taxed  20  and  35  per  cent,  the  20  per  cent 
duty  being  levied  on  reapers  and  the  like.  The  average  of  tlie  duties 
on  leather  goods  is  20  jjer  cent,  on  silks  30,  on  paper  and  manufactures 
of  paper  30,  on  gutta-percha  and  rubber  goods  30,  on  llax,  hemp,  and 
jute  manufactures  22,  on  earthenware  and  chiiui  30,  on  cotton  manu 
factures  29.  The  duty  on  bituminous  coal  is  00  cents  per  ton ;  anthracite 
and  coke  are  free.  The  average  of  the  duties  on  carriages,  buggies,  and 
railroad  cars  is  30.  Wheat  is  taxed  15  cents  per  bushel,  corn  7A  cents, 
pork  3  cents,  kerosene  (J  cents  ])er  gallon,  with  a  duty  on  the  barrels. 
Tiie  average  duty  levied  on  imports  from  Great  Britain  exceeds  the 
average  on  imports  from  the  United  States,  owing  to  so  nmch  nu)re 
raw  material  being  bought  lr(»m  the  United  States.  As  a  rule,  farm 
products  command  a  higher  price  in  the  United  States  than  in  Canada. 
In  a  recent  speech  in  Parliament  Mr.  McMillan,  a  Liberal  mejnber, 
showed  that  during  the  thirteen  years  18S2-1S94  wheat  averiiged  92..'i 
cents  in  the  United  States  as  comi)iued  with  an  average  of  85.G  cents 
in  the  Province  of  Ontario;  and  so  with  oats,  cattle,  live  hogs,  etc. 


76 


RECIPKOCITY    STATEMENTS. 


The  price  of  barley  ia  usually  higher  at  Buflalo  than  at  Toronto  by  the 
amount  of  the  United  States  duty  and  the  cost  of  transportation  from 
Toronto  to  Bnilalo. 

The  jn'otective  tariff  in  Canada  has  not  fulfilled  expectations.  Th«i 
home  niaiket  is  small,  numeric^ally,  and  scattered  over  a  vast  area. 
Hence  the  cost  of  selling  and  shipi)ing  goods  is  exorbitant  and  the 
cost  of  manufacturing  them  high,  because  manufacturers  are  unable  to 
specialize  their  labor  and  nnichinery  for  the  production  of  special  lines. 
It  hai)]»ens,  also,  that  coal  is  found  only  at  the  extremities  of  the 
Dominion,  in  Nova  Scotia  and  British  Columbia,  4,000  miles  apart. 

Tlie  percentage  of  increase  in  the  population  of  the  Dominion  between 
1881  and  1891,  with  protection  in  force,  was  only  11.70,  or  less  than  the 
percentage  in  an  old  and  overcrowded  community  like  England  and 
Wales,  and  not  half  as  great  as  the  percentage  in  the  United  States. 
It  can  not  be  doubted  that  the  slow  progress  of  Canada  is  due  in  great 
part  to  her  economic  disabilities.  What  would  rich  commonwealths 
like  New  York,  Pennsylvania,  or  Ohio  have  amounted  to,  if,  from  the 
beginning,  they  had  been  cutoff  from  the  industrial  and  commercial  life 
of  the  rest  of  the  continent  and  thrown  back  entirely  upon  themselvest 


SITUATION   OF   THE   FISHERY   QUESTION. 

It  is  generally  allowed  in  Canada  that  the  North  Atlantic  fishery 
question  is  in  an  unsiitisfactory  position.  At  present  American  iislier- 
men  are  allowed  comnierci  '  privileges  in  Canadian  ports,  on  payment 
of  a  tonnage  tax  of  $1.50  ,  -r  ton.  At  the  same  time,  Canada  allows 
the  French  tishernien  of  the  Miquelon  Islands,  the  sole  remnant  of 
French  Empire  in  North  America,  to  enjoy  full  commercial  privileges 
in  Canadian  ports,  Avithout  receiving  any  e(juivalent  whatever  from 
France;  and  Canadian  tishermen  enjoy  similar  privileges  to  the  fullest 
extent  in  American  ports.  The  bonding  privilege,  under  which  a  large 
railroad  and  canal  traffic  has  sprung  up,  is  of  great  importance  to  tlie 
inland  Provim^es  of  Canada,  which  are  shut  off  from  the  Canadian  sea- 
board by  the  live  months  of  winter.  No  doubt  it  is  also  an  advantage 
to  the  people  of  New  England,  Minnesota,  and  Illinois,  who  are  served 
to  some  extent  by  Canadian  railways,  as  also  to  the  people  of  the 
Western  States,  who  send  a  good  deal  of  produce  to  the  seaboard  by 
the  St.  Lawrence  route.  It  is  felt,  however,  owing  to  the  peculiar  posi- 
tion of  the  Canadian  railroads  in  respect  to  the  interstate  commerce 
act,  that  the  bonding  ])rivilege  is  in  some  danger. 

The  Liberal  party  thinks  that  these  an<l  other  questions  affecting  the 
welfare  of  the  two  countries  might  be  placed  upon  a  satisfactory  basis 
by  means  of  a  general  scheme  for  closer  comujcicial  intercourse.  Thej' 
do  not  discuss  the  question  of  political  union  in  their  platforms  or  in 
their  speeches  before  the  ]mblic,  and  have  notliing  to  say  on  that  sub- 
ject. But  they  do  think  that  both  the  United  States  and  ( Uinada  would 
be  benelitcd  by  the  adoption  of  more  intimate  trade  relations,  and, 
should  they  obtain  power  a  few  weeks  hence,  will,  no  dcmbt,  take  an  early 
opportunity  of  placing  the  case  before  the  Government  at  Washington. 

EUWD.  Farrek. 
Toronto,  April  6, 1896, 


Tbt^ 


APPENDIX   B. 


TRADE  WITH  THE  ARGENTINE  REPUBLIC  AND  URUGUAY. 


77 


■'llil 


TRADE  WITH  THE  ARGENTINE  RErUliLlC. 


STATEMENT  OF  MR.  WILLIAM  E.  CURTIS,  OF  WASHINGTON. 

No  jittenipt  was  made  to  apply  the  retaliatory  ])rovision  of  the  reci- 
procity section  of  the  tariff  act  of  1890  to  any  other  conntry  except 
Colombia,  Venezuela,  and  Haiti,  for  the  reason  that  the  President 
believed  the  duties  imposed  by  tliem  alone  were  onerous  to  Ameiican 
commerce  and  reciprocally  uneiiual  and  unreasonable.  There  was  some 
correspondence  with  the  Argentine  liepnblic.  That  Government  con- 
tended that  the  duties  it  imi)osed  upon  our  peculiar  iiroducts,  such  as 
lumber,  refined  i)etroleum,  agricultural  implements,  machinery,  and 
other  manufactures  of  iron  and  steel,  were  not  unreasonable  in  view  of 
the  tax  we  ini])08ed  upon  wool,  which  was  its  i»rinci])al  item  of  export 
to  the  United  Stsites.  It  was  intimated  at  various  times  during  the 
negotiation  that  if  the  United  States  would  remove  the  duty  from  wool 
the  Argentine  Government  would  make  generous  concessions  in  favor 
of  our  manufacturers,  but  such  an  arrangement  was  not  authorized  by 
the  law. 

In  January,  1894,  the  Argentine  minister  in  Washington  submitted 
to  the  Secretary  of  State  a  memorandum,  setting  forth  the  mutual 
economical  advantages  that  would  result  to  the  United  States  and  to 
that  country  by  the  free  introduction  of  Argentine  wool  into  our  markets, 
and  in  a  subsequent  communication,  dated  January  30,  1894,  informed 
him  that  the  Argentine  Congress,  in  adopting  its  tariff  for  that  year, 
had  included  crude  petroleum  in  the  list  of  articles  to  be  admitted  free 
of  duty.    He  said: 

The  exemption  of  crude  potrolenm  is  of  the  greatest  iinportsinceto  American  com- 
merce, for  it  will  be  remembered  that  in  the  Argentine  Kepnblic  it  is  employed  as  a 
fuel  in  competition  with  English  coal,  and  the  annual  importation  is  as  follows : 


Tons. 

1888 333,798 

1889 658,054 

1890 514,582 


Tons. 


1891 350,680 

1892 520,771 


LIBERAL  OFFERS   IN   KXCHANGE   FOR  FREE   WOOL. 

The  Argentine  Government  desires  to  strongly  insist  upon  its  opinion  that  the  ap- 
proval of  the  action  in  respect  to  wool  will  extraordinarily  increase  the  volume  of 
the  commercial  relations  between  tlie  two  countries,  .ind  permit  the  manufactured 
products  of  the  United  States  to  enter  into  active  competition  with  similar  articles 
of  European  origin  in  the  rich  Argentine  marlcct. 

It  is  also  expected  that  the  Argentine  Congress  will  exempt  from  the  payment  of 
duties  lumber,  lubricating  and  fuel  oils,  and  refined  petroleum  froiu  this  country, 
which  articles  are  consumed  in  Argentine  ujion  a  large  scale. 

This  communication  was  forwarded  by  the  Secretary  of  State  to  the 
Committee  of  Ways  and  Means  on  the  3d  of  February,  1894,  while  what 
is  known  as  the  Wilson  bill  was  under  consideration. 

On  the  30th  of  July,  1894,  while  that  bill  was  pending  in  the  Senate 
the  Secretary  of  State  forwarded  to  the  Finance  Committee  another 
communication  from  the  Argentine  minister  inclosing  a  cablegram  from 
the  minister  of  foreign  afiairs  at  Buenos  Ayres,  with  reference  to  the 

78 


80 


RECIPROCITY    STATEMENTS. 


vote  of  the  iSeiiate  concuiTing  in  the  vote  of  tlie  House  of  I{ei)resentii- 
tives  concerning  the  removal  of  duty  on  wool,  as  folhiws: 

Kect;iv('(l  tolc^raiii  with  <;r«'iit  aiitisfaction.  (iovciiiiiioiit  will  uho  otl(>rt«  iu  order 
that  Coi)iji<'HH  shall  respond  with  nil  possililo  exomntioii.  t?,..,.,..w.  /<...,.• 

The  Argentine  minister,  commenting  upon  this  telegram  to  the 
Secretary  of  State,  says: 

It  hIiows  that  my  country  j)roposo8  to  advocate  additional  reductions  of  duty  in 
rcsj.cct  to  ]ir(i(hu!ls  of  the  United  States,  an<l  a  (viinniission  appoint<'d  to  study  the 
n-forni  of  tiio  (nistoins  laws  hat'  already  publicly  stated  Uh  ojtinion  in  favor  of  the 
reduction,  to  in  important  "xtent,  of  dutit^s  upon  rclined  petroleum,  aj^ricuitural 
macliincry,  and  white  i>ine  and  Hjirnce  Inmher,  which  articles  are  at  present  amonj? 
the  i)rincipal  purchases  of  the  Argentine  Kepnhlic  in  the  markets  of  tiie  ruite<l 
States. 

in  communicating  to  the  Secretary  of  State  these  satisfactory  tidings,  I  permit 
myself  to  rememlier  that  they  eonlirm  the  predictions  which  I  had  th<>  honor  to 
sulimit  to  the  upright  Judgment  of  the  I'resiilent  of  the  Tnittid  States,  in  the 
interview  wherewith  he  ln)nored  me  on  the  VMh  of  November,  JH!t:i,  and  to  the  Sec- 
retary of  State  in  various  communications,  oral  and  written,  wherein  I  stated  that 
the  freii  admission  of  wools  and  idher  agricultural  products  woulil  give  a  ntnv  and 
reciprocally  advr.ntagcons  aspect  to  the  commerce  of  the  two  nations,  <;nergetically 
stimulating  it  in  favor  of  spontaneous  and  reciprocal  parliamentary  courtesies. 

NO  NOTICE  TAKEN  OF  THE  ARGENTINE  OVEllTUKES. 

Neither  the  Seuat*^  nor  the  House  of  liepresentatives  appeal's  to  have 
taken  iiny  notice  of  these  friendly  advances  from  the  Argentine  Gov- 
<Lrnmci>t.  On  the  contr.iry,  they  proceeded  to  remove  the  tluty  on  wool 
without  even  acknowledging  the  liourteous  disposition  (»f  that  countiy 
to  make  corrc8])onding  concessions  in  favor  of  the  products  of  the 
United  States.  As  a  consetpu'nce  the  Argentine  (Jovernment  swal- 
lowed its  chagrin  and  dropi)e(l  the  subject.  It  couhl  not  be  expected 
to  force  frieiully  concessions  upon  the  United  States,  nor  to  insist  u])on 
making  them  when  their  oilers  were  received  with  contemptuous  indif- 
ference. Therefore  no  action  was  taken  by  the  Argentine  Congress  in 
the  way  of  reductions  or  discriminations  in  the  interest  of  the  farmers 
and  manulacturcrs  of  the  United  States. 

The  very  nattual  result  was  that  when  Mr.  Buchanan,  the  very  active 
and  able  minister  of  the  United  States  at  Buenos  Ayres,  went  to  the  min- 
ister of  foreign  affairs  a  few  months  later  to  ask  that  some  conci'ssions 
migiit  be  made  in  the  duties  upon  imports  from  the  United  States  in  the 
tariff' of  18U5,  he  was  coolly  inloi'ini'd  that  the  Argentine  (lovernment  did 
not  consider  itself  under  any  obligations  to  the  United  States  becjiuse 
of  the  removal  of  the  duty  ui)on  wool,  its  chief  article  of  export  from 
that  country  to  this.  He  explaitied  that  his  GovernnuMit  understood 
the  sitiuition,  and  that  our  Congr<5Ss  did  not  remove  the  duty  with  any 
intention  co  benelit  them,  but  merely  as  a  political  nu'asure,  and  in 
response  to  the  denninds  of  public  sentiment  in  the  United  Stsites. 

The  sensiti^  e  tem|)erament  of  the  Argentine  people  on  this  subject, 
liowever,  was  in<li<!ated  by  a  letter  which  Mr.  Domiiigue/,  theestinuible 
charge  d'affaires  of  the  Argtuitine  liepublic  in  this  city,  wrote  to  the 
Secretary  of  State  aiid  forwarded  to  the  chairman  of  the  Senate  Com- 
mittee on  Finance,  in  .lanuat-y  last,  remonstrating  against  the  pr()posed 
restoration  of  the  duty  on  wiiol,  "  in  order  that  there  siiould  not  be  any 
interru{)tion  in  the  good  ffti^ling  now  happily  existing,  and  to  avoid '!is- 
turbing  tli«>  eommeiciid  relations  between  the  t,vo  countries" — that  is, 
the  Argentine  Ke{  nblic  and  the  United  States.  lie  asks  that  hiscoun 
try  be  exempted  from  the  operation  of  the  V)iU  if  a  duty  upon  wool  is 
insisted  ujkju,  and  says; 

Id  this  way  the  relations  with  the  sister  Republic  wonld  not  be  affected,  and  the 
jVrgeutiQB  Republic  wt  'ild  supply,  ix»  a  uiodorute  degree,  the  wanta  of  this  uiavkoti 


1 


RECIPlt()(JITY    .STA'l  KMENTS. 


81 


•t, 
l>1c 
he 
|ni- 
h1 
|iy 
lis- 

n 
111 

lis 


while  tho  IJiiitod  Hlat«!H,  takiiij?  !X(lvaiila;4('  ol'  tlio  Held  (ipcii  to  Anierican  mannfac- 
tiircrs  ill  tiiat  country,  would  coiitiniu;  to  cxiiaiul  \wv  tfxjiortis. 

EFFECT   OF   FREE   WOOL   UPON   THE    ARdENTINE   TARIFF. 

In  December,  18!)4,  the  Argentine  Kepiiblic,  }»s  usnal,  revised  its 
tariir,  and  instead  of  rcH|)ondin<j  in  a,  j;ener<)us  manner  to  the  removal 
of  the  duty  on  wool  as  i)roinised  by  th(^  minister  of  foici/iii  relations 
and  the  Arjientine  minister  in  Wasliiiioton,  while  the  taiitl  law  of  l.S".>4 
was  under  consideration,  the  only  reduction  of  any  siunificance  was 
I'lom  00  to  20  per  cent  ad  valorem  in  the  duties  on  cotton  "oods,  whicli 
are  not  imjxirted  in  any  ({iiaiitity  from  the  ('iiite<l  States. 

There  was  a  reduction  on  petroleum  from  2  to  1.^  <'ents  per  liter, 
which  is  about  a  j>allon.  Harness,  boots  and  shoes,  leady-made  clotli 
ing,  furniture,  wa.u()ns,  and  cariiajics,  wiiicii  we  exixirt  to  a  very  small 
amount,  were  redm  d  from  (»()  to  5(1  per  cent  ad  valorem,  but  the  <luty 
on  lumber,  whii'h  is  tlu'  laro'cst  of  oui'  exports,  was  increased  from  5  to 
1.")  per  cent,  and  rail  '  ;»y  supplies  ami  otlier  aiticles  ol' iron  and  steel 
were  taken  from  the  free  list  and  taxed  T)  and  10  ])er  cent  ad  valorem. 

Mr.  \'icent(if».  Dominpne/,  tiie  ac(;omplished  charjii' d'alfiiires  of  the 
Arj>'eiitiiie  i{ei>ublic  at  \\  ashin,iiton,  in  a  letter  jirinted  iieicwith  <"om- 
meiids  the  j^enerosity  of  his(ioveinnieiit  in  reducing  the  duty  on  yellow 
l)ine  from  2~>  to  1 "»  per  cent  ad  valorem,  and  advancing  the  duty  on 
white  and  s]»ruce  i)ine,  "which  goes  cliielly  from  Canada,'  from  o  to  la 
l)ercent.  lie  gives  (igures  to  show  tiiatthe  Argentine  (iovernment  thus 
suireiiders  $l.'r)(>,0(iO  in  duties  aiinnally  in  I'avor  of  the  Tnited  Stati's. 

The  tacts  are  that  during  the  fiscal  year  ending  .luin- ."50,  l.Sl>r>,  the 
expoits  of  lumber  of  all  kinds  from  the  United  States  to  the  Argentine 
IJepublic  (yellow  ])ine  is  not  given  separately)  were  valued  at  ^HTM,  lO.S, 
In  l.S';>l  tl'u^  total  wjts  !t!,S(;s,o;{S;  in  1811.".,  !J(i)7U,i;il;  in  1S02,  *  10S,,sr)1, 
aiul  in  181)1,  $r)S(;,821,  which  allows  an  averag*'.  of  %7 13,249  per  year  for 
the  last  live  years. 

Assuming  these  shipments  to  be  entirely  of  >ellow  jiine  lumber — 
which  they  were  not,  as  they  included  s(  v«'ral  ether  kinds  of  lumber, 
timber, and  nninufiicturesof  wood — the  maximum  duty  formerly  imposed 
by  ihe  Argentine  (Iovernment  under  its  li5  jter  cent  rate  would  lia\(' 
been  an  average ',/f  •"i«l.sr»,04!>  a  yeiir.  This  duty  was  recently  reduced 
from  25  to  \ii  per  cent.  Therelbre  the  amoiin!  iictually  surrendei'cd  by 
the  Argentine  (iovj'rnment  was  the  ditrer«'nce  between  15  and  25  per 
cent  of  $74.'{,240,  which  is  10  per  cent  of  that  amount,  or  !?74,.'}2l.l)0. 

PROPORTION  OF  FREE  IMPORTS  INTO  THE  UNITED  STATES. 

On  the  other  hand,  the  imports  into  the  United  States  from  the 
Argentine  Hepubli<'  during  the  last  live  years,  free  and  dutiabh',  were 
us  follows: 


Yoar— 

F'oe. 

Dutinblo. 

'rotnl. 

1891 

$4,  r>o;<,  828 
;i,!>2i,oi!;i 
•t,  84;i.  8i:i 

2, 687,  UUU 
U.  81)5,  U82 

*1, 470, 716 

1,  i-s:.  175 

i,:i'.>r),2r.2 

80»,  uai 

839,  :>38 

f  r..  1)70,  r.44 
5,  :i4:i,  7!»8 

IH02 

i8!i;) 

5,  2;l»  iiU5 

1H1(4 

3, 4U7,  o;u) 
7, 075, 270 

1805 

Of  the  $8.'{(),288  in  imported  merchandise  which  j  lid  duty  in  18f>5, 
$221,172  was  third chiss  wool  entered  before  the  Wilstm  (lornmn  law 
went  into  elfeiit,  and  .*<58l>, 887  was  linseed  and  tiaxseed.  I'revious  to 
last  year  the  imports  into  the  United  States  were  alnn.st  eufirely  wool 
and  liides.    The  total  value  of  hides  and  skins  imported  in  1895  was 

H.  Kep.  22G3 0 


X Lv ^ 


82 


RECI PKOCITY    STATEMENTS, 


$4,423,154.  Tlio  last  duty  imposed  upon  hides  by  the  United  States 
WHS  10  i»er  cent  ad  valorem,  in  1 8(11,  wliieli  was  repealed  in  1872.  If 
this  duty  were  still  ai)i)lie<l  the  hides  imported  from  the  Argentine 
Kepublic  would  have  brought  8«142,.'iir).4()  into  the  Treasury  last  year. 
The  im])orts  of  wool  last  year  from  the  Aigeutine  liepublie  amounted 
to  25, 7 1."), 854  ])ounds,  and  the  amount  of  duty  that  would  have  been  eol- 
leeted  upon  it  had  not  that  tirtiele  been  placed  upon  the  free  list  was 
$2,021,401,  as  follows: 


IVmuuIs. 

6,  fl4;i,  544 

•J2I.819 

18,880,491 

Duty. 

('Inss  1  .          ......            

$1,  401, 578 
20,  018 

Cliis.t'J      

CIliSH  IS 

5:w,  -JOS 

'I'olill 

25, 745, 854 

2,021,401 

Thus,  on  the  two  artieh'S  wool  and  hides  the  United   States  surren- 
dered a  total  of  $2,  Ui.'{,71(>  in  duties  in  favor  of  the  Argentine  IJepublic, 
while  the  latter  Goveiiiment  surrendered  ■'i«7  1,324,  or,  according  to  Mr 
Donnngue/,  $2."'»  (lOO,  in  favor  of  the  United  States. 

'i'liis  is  not  reciprocity,  but  at  the  sanui  time  our  Congress  did  not 
ask  the  Argentine  Ifepublic  to  reciprocate.  On  the  contrary,  die 
I'nited  States  Senate  igixuc^d  the  fiiendly  advances  of  that  (lovern- 
ment.  Therefore,  wliiU^  we  have  nothing  to  co'  .'i-lain  of,  this  incident 
may  point  a  moral  for  future  tarill'  legislation.  If  tlie  tariff  law  of 
1801  liad  contained  a  clause  providing  that  the  lemoval  of  the  duty  on 
wo(»l  shoi'ld  apply  only  to  import;^  '"'•  ,r.  such  countries  as  made  recip- 
rocal concessions  in  favor  of  the  pi(  lucts  of  the  Uidtcd  States,  there 
would  have  been  other  changes  in  the  tariff  of  that  country. 

THE   ARGENTINE   TAUIFF. 

The  Argentine  tariff  is  ad  valorem,  and  all  goods  pay  a  duty  of  25 
j)er  cent  excei)t  sucli  as  are  specified. 

The  tbllowing  srat  ment  shows  changes  in  the  rates  of  duty  upon 
]iriiicipal  aitich's  of  «'\port  iVom  tlie  I'nited  States  in  181H  and  I8!>5, 
l»t!fore  and  after  the  removal  of  tiie  duty  on  wool  by  the  Congress  of 
the  United  States: 


Artit'K's. 


ISnidii 

lioiilH  and  Bliot'B,  Ion  Out  gooilH,  hiirncsH,  otc 

niilltr jMi-kild.. 

('iimlU.4 clo — 

Ciiniasi'H,  waf{'»iii-,  »tnl  otlnir  vi'lii(!li!H  

Col  loll  )'ali''iiM 

MaimfactinVB  of 

lii'W 

Fmni  iiro 

llamn 

II  a  Ik.  caiw,  aiul  ready  iiiailo  cliitliliitJ      - 

Iron  ami  utt'ol  fxclii.sivclv  (Vr  niilwii.vH  and  I  ram  ways 

Scriiii  . . 

KrroMtMio ]»'T  liter. . 

I.ard l»er  kilo.. 

litnclihii'M  of  all  UiiiiU   

Oil,  vc)iclali!i'  iif  all  Uiiwln 

Slllf,  iiiaiiiirarl  111  cH  oC 

Sloi  liinjiM  and  Unillfil  stiilV 

Wliilf  pi  lie  tnd  »|iriii  r  

V.  ll.MV  |di  .■ 

Wool,  iiianiirartiirrM  ut° 

Woolen  .vurn  for  wcitv ing 

(i2.'>  )H'r- rent  ad  Milnrciii  in  IX'M;  2"  ci  iilinics  pel' kilo  in  !si)j, 
&25  iior  cent  ad  viiluruni  iu  181)4 ;  25  cuuliuivs  per  kilu  iu  1806. 


1894. 

189.-.. 

i'ereent. 

I'er  cent. 

(«) 

ta) 

00 

r>o 

:iu 

10 

5 

ifl 

10 

50 

25 

20 

m 

60 

5 

2.5 

(!0 

50 

('') 

{(>) 

00 

50 

FrcB. 

10 

yii-v. 

s 

2 

1.5 

18 

8 

5 

10 

12 

10 

6U 

50 

40 

45 

6 

16 

2S 

16 

00 

SO 

Fr.-o. 

6 

ted  States 
I  187L\  If 
Argentine 

last  year. 

amounted 
e  been  col- 
ee  list  was 


Duty. 

14 
9 
il 

$1, 401, 578 

20, 618 

5:i;(,  1105 

>4 

2,0'il,40l 

tes  snrreii- 
',  Hepuhlie, 
iiig  to  Mr 

sa  did  not 
trary,  die 
it  (iovcrn- 
is  incident 
rill'  law  of 
Ik;  duty  on 
lade  recip- 
ates,  there 


duty  of  L'r» 

duty  upon 
and  l.Si).'), 
digress  of 


I 

m 
;io 
ir> 

11(1 


1805. 

t'lr  cent, 
(a) 
.W 
10 
10 
50 


00 

•..'0 

50 

5 

2.5 

(10 

CO 

) 

(''> 

00 

50 

riM'. 

10 

ire. 

5 

'1 

1.6 

lii 

8 

5 

10 

1-.' 

10 

liO 

.50 

40 

45 

r, 

15 

U.'i 

15 

lid 

50 

vo. 

B 

RECirROOITY    STATEjrENTS. 


83 


In  the  tariff  laws  of  the  Argentine  liepublie  for  the  year  1895  ai)i>ear 
tlie  following  items,  which  wei'e  not  classilied  in  the  tariff  of  18!)4.  The 
duty  whieh  would  probably  have  applied  is  giveu. 


Articles. 


Miirliiiio.t  of  all  kinds  of  a  \aliio  of  100  pesos  and  more 

Mueliinew  and  motors  ot  all  Itind.'i  for  afiiiiultiiral  ]mr|i()ses. 

Win'  of  iron  or  steel,  Ijarhod,  for  fences 

Iron  in  injiots,  for  fminilrles 

Twine  forreapinf;  'nacliines 

Cod  and  similar  tish,  salted 


!S94. 

1805. 

Per  ee tit. 
5 

Per  cent. 
10 

Free. 
5 

(a) 
Free. 

(6) 

a 
5 
5 
5 
4 

o2  centimes  per  10  kilos.  630  centimes  per  kilo. 

REDUCTIONS  IN  THE  AROENTINE  T.VKII'I'  IN  18!l.5. 

Tlio  following  statement  shows  the  rates  of  eustoms  duties  imposed 
upon  certain  articles  of  import  into  the  Argentine  l\'c])iil)lic  dining  iiie 
years  181>4  and  181);";,  before  and  after  the  removal  by  the  Uniicil  .Slates 
of  the  tariff"  on  wool : 


Articles. 


Cheese centimes  jier  kilo. 

Coal 

Flour,  wheat,  or  uuiize 

Iron  and  steel,  and  nuinufactures  of: 

-Arms  and  a<ii'S»ories  thereof jier  cent. 

I'lows do. .. 

Machinery  and  material  for  piihlic  illumimttion do. .. 

Marliinery  and  ai>paratus  for  industrial  puriioses do... 

Machinery  of  all  Kinds  with  steam,  (;as,  compressed  air,  or  electric  motors,  per 
cent 

Motors  inijiorted  separately per  cent. 

P^xtra  or  exclianne  parts  for  the  machines  above  enumerated do... 

Sewiufi  mailiines  and  needles  for  sanu» do. .. 

Wire  fnuu  No.  1  to  No.  13,  in  rollH  or  on  l)oIil)ins do. . . 

Wire,  galvanized do... 

velrv  ..i do. 


1891. 


189".. 


Ji'welry 

Lead do . . . 

Locomotives 

Matches: 

Wax centinu-B  per  kilo. 

W  (.od do . . . 

Tet roleiim,  crude,  and  iiaplitha 

Paper: 

For  writing  and  i>rlntinp centinu's  per  kilo. 

•Straw,  hloliini:,  uni\  foi  hags,  packing,  i^tc.  wall  and  colored do... 

Pickles  of  all  kinds do. .. 

Preserves  of  alt  kinds do... 

Salt: 

('onunon centimes  per  hectoliter. 

Tttt)lo ceiiliiiiis  j.rr  ion  kilos 

Wirt,  tacks cenlirm  h  p.r  Kilo. 


.  :io  [ 

.•M 

Fiee.   , 

Free. 

Fr-.'    ' 

Free. 

.50        ! 

.'.(1 

;-.         1 

5 

•  ""'  i 

.05 

.  (I.". 

05 

.0.-, 

.05 

.().")  1 

.  10 

.  1  •'.  j 

.O.'l 

.  O.'i  1 

.05 

,  (1.*)  1 

.  Ii5 

(,f) 

.05 

Jl.'l 

.05 

(fc) 

.10 

Free. 

Free. 

.81 

.80 

.411 : 

.40 

Free 

Fri'ii. 

.o:i 

.  o;i 

.15 

.  12 

.15 

.  10 

.;io 

.20 

.  20 

.20 

2.00 

2.00 

.oat 

.03 

n 0.005  centime  per  kilo. 


6  0.t)0.i  centime  per  kilo. 


Tn  the  tariff  laws  of  the  Aigentine  Republic  i'or  the  year  1805  appear 
the  following  items,  which  were  not  classilied  in  the  taritf  of  181)1.  Tiie 
duty  whieh  would  ])robably  have  applied  is  given. 


Articles. 


1804. 


189.'i. 


Machines  of  all  kinds  of  n  value  of  loo  pesos  and  more  

Machines  aiul  nmtors  of  all  kinds  for  nKricultural  purposes. 

Wire  of  iron  or  ^teel,  l.arbed,  foi'  fences 

Iron  in  liiyots,  for  foundries 

'I'wiiii'  lor  reaping  machines 

Cud  and  similar  lisli,  saltud 


I'l-r  ci'iil.    Veiceul. 


5 

10 

Free. 

5 

6 

5 

««) 

5 

Free. 

5 

{I» 

4 

a8  oentiiuus  per  10  kilut. 


(30cent4iues  per  kilo, 


If 


i 


t  - 


I  I 


84 


RECIPUOCITY    STA'lEMEXTS. 


The  Argentine  tariff  for  18!)G  ia  the  Siii 
modifications,  the  only  chanjios  thai  aft' 
States  being  an  increasi;  of  the  duty  up* 
l)er  cent  ad  valorem  and  thi^  reductioi' 
from  25  to  T)  per  cent. 

There  is  fihvays  more  or  less  confusion 
statistics  'of  tl?e  Arjjjentine  Kepublic;  \vi 
which  ft  has  commerce.  This  is  due  to 
ment  of  assessing  duties  upon  the  locii 
value  of  imi)orted  merchandise,  which 
transi)ortation  as  well  as  orijiimil  cost. 


;ie  as  that  for  1895,  with  a  few 
ct  the  interests  of  the  United 
n  walnut  lumber  from  T)  to  15 
of  tlie  duty  upon  horserakes 

in  cojup'riring  the  ollicial  trade 
th  those  of  the  nations  with 

the  i)rac<^i<;e  of  that  Goverii- 
1  value  instead  of  the  exi)ort 

represents  commissions  and 


VALUE  OF  THE  ARGEN^'INE  MARKET. 

The  value  of  the  market  of  the  Argentine  Kepnblic  to  the  manufac- 
turers of  the  United  States,  as  well  as  the  danger  that  our  agricultural 
interests  liave  to  fear  from  its  comi)etition  in  tiie  grain  ])orts  of  I'>urope, 
is  beginning  to  be  thoroughly  understood,  and  a  brief  examination  of 
the  lists  of  imports  into  that  country  will  demonstrate  how  great  an 
advantage  was  thi-own  away  when  the  Fifty-third  Congress  rejected 
the  friendly  advances  of  that  Government. 

The  total  imports  of  mercliamlisc  into  the  Argentine  Republic  from 
all  countries  in  1894,  the  last  year  for  which  the  statistics  are  obtain- 
able, amounted  to  ■f89,478,(!(5(),  of  which  al)()Ut  38  ])er  cent  came  from 
Great  liritain,  22  per  cent  from  f'rance,  1-  per  cent  from  Germany,  8 
per  cent  from  Belgium,  and  less  than  (5  per  cent  from  the  United  States. 

The  Argentine  lvei)ub]ic  is  ])urely  an  agricultural  and  pastoral  coun- 
try. The  absence  of  fuel  and  water  ijower  will  peinianently  prevent 
the  establishment  of  mechanical  industries  to  any  great  extent,  and 
therefore  the  peoi)le  will  alw.iys  be  comixdled  to  buy  abroad  wiiatever 
they  re(p;ire  in  the  way  of  manufactured  merchandise.  They  are  a  lux- 
uiious  and,  in  sonn^  respects,  an  extravagant  nation.  In  past  years 
they  have  in  turn  enjoyed  extraoidinary  i<ros])erity  and  suffered  from 
severe  financial  an<l  commercial  depression.  r>ut  the  c'lpacity  of  the 
Eepublic  for  the  production  of  food  is  ])ractically  unlimited  and 
depends  upon  the  numbers  of  the  ])o]>u!ati()n  and  the  expansion  of  the 
cultivated  area.  But  tiiey  must  buy  in  foreign  markets  everything  that 
is  needed  to  wear  and  use  in  their  households,  their  nmchinery  and 
imjdenHMits  and  other  articles  of  iron  and  steel,  tlieir  building  materiul 
(both  hunber,  hardware,  and  rooting),  their  agricultural  implements 
and  tools,  their  railway  sup])lies,  ineluding  locomotives  and  cars;  their 
di-ugs  and  medicines,  their  textile  fabrics,  their  kerosene  and  coal,  and 
many  otlier  artiides  of  luxury  and  necessity,  and  the  greater  portion 
could  be  furnislied  by  the  Unit«Ml  States  if  (Mir  merchants  ami  manu 
faeturers  were  able  to  compete  with  those  of  ICuroi)e  on  even  terms. 

AROENTINE   TRiiDE   WITH   EHROPE. 

Great  Britain  has  always  enjoyed  the  bulk  of  th»>  trade,  and  a  glance 
J' t  her  exports  to  the  Argentine  Ivepublic  show  that  the  total  has  not 
fallen  below  $l»8,(t(l(>,(H)(>  slmr-  iss;?;  that  in  1S9(^  they  reached  the 
enennons  sum  of  )s!4L'.0(Mt,(HK.,  and  in  1894  they  a?c  ^  '  t  '1 1  >  «2'J,5.50,()()0. 
The  largest  proportion,  usu;;'ly  inoie  than  !  d»  o;  il. .  n,  orts  trora 
Great  liritain,  are  textile  Ihbrir.^  nad  cotton  ..:'■■  a  i^'^n  yviot!  but  they 
iriclude  a  great  deal  of  iron  and  steel,  railway  hi  •I'a'  .  ,  ;t>  hinery, 
agricultural  imjdements,  drugs  and  c.,.  .deals,  •■  '  ti  ana  copper 
wares,  and  other  artidas  that  we  cuii  furnish  Just  ai',  v  J'  '»n  the  Jh'itish. 


•<^:::.'N' 


RECU'ROCITY   STATEMENTS. 


85 


5  to  15 


glance 
iis  not 
'd  the 
r)0,(K)(). 
trom 
they 
iinery, 
copper 
iritirtb. 


The  imports  into  tlie  Ai'f>(Mitine  Kei)nhlic  from  France  are  mostly 
luxuries,  and  there  has  recently  been  a  lUlliny  off  in  the  total,  which  is 
explained  by  the  financial  depression  and  the  inability  of  the  people  to 
indulge  in  articles  that  are  not  actually  needed.  In  the  tlush  times 
between  1887  and  1890  the  imports  from  France  surpassed  $,'iO,00(),()00. 
Now  they  vary  from  $12,()()( »,()()()  to  $15,00(),()()0,  and  consist  of  sugar, 
wines,  jewelry,  dress  goods,  leather,  jiaper,  perfumery,  and  other  fancy 
articles. 

The  imports  from  Belgium  are  mostly  cotton  and  woolen  fabrics, 
ready-made  clothing,  macliinery,  railway  material,  and  other  artii^les 
of  iron  and  steel,  paints  and  oils,  and  other  similar  articles,  which  usu- 
ally aggregate  $10,(K»0,()(K)  or  $1L>,(R)0,00(),  and  have  been  as  high  as 
$14,0(K),()00. 

The  trade  with  Germany  has  at  times  reached  nearly  8l(>,()00,()00.  and 
it  usually  varies  between  810,(K)(».()00  and  $12,0()(),()(H).  The  imports 
consist  of  articles  similar  to  those  that  are  bought  in  Belgium,  the  chief 
itenis  being  wearing  api)arel  of  all  kinds,  macliinery,  railway  supplies, 
and  other  manufactures  of  iron  and  steel,  wire  for  fences,  jninting 
paper,  sugar,  starch,  and  beer. 

ARGENTINE    TRADE   WITH   THE   UNITED   STATES. 

Compared  with  the  trade  of  the  nations  named,  the  imports  of  the 
United  States  are  very  insignillcant,  and  the  total  ex])()rts  for  1895, 
$4,450,103,  were  less  than  they  were  in  187;>,  when  tlicy  amounted 
to  $5,i07,(>10.  And  this  notwithstanding  the  fine  i)romises  of  the 
Argentine  Government  iu  case  of  the  removal  of  the  duty  on  wool. 
We  send  them  practically  nothing  that  they  can  not  buy  elsewhere. 
They  are  compelled  to  come  here  for  their  soft  lumber,  tlieir  petroleum, 
their  naval  stores,  and  they  buy  our  agriculturpl  ini])lements  because 
we  furnish  the  best  that  the  world  affords.  The/e  are,  however,  some 
lines  of  goods  wMiich  have  entirely  disappeared  from  the  table  of  <mr 
expoits,  such  as  sugar,  starch,  furniture,  tobacco,  lard,  etc.,  upon  which 
the  tariff  is  so  high  that  they  can  not  beex])orted  with]»rofits.  The  tariit 
on  lard,  furniture,  and  tobacco,  for  example,  is  50  per  cent  ad  valorem, 
and  almost  every  other  aiticle  they  get  from  us  has  a  corresi>onding 
duty. 

On  the  other  hand,  nearly  everything  that  is  imported  into  the 
lJnit«'d  States  from  the  Argentine  Re[>ublic  since  the  passage  of  the 
tariff  acts  of  1894  jtasses  tree  tiirough  our  custom  houses.  The  removal 
of  tiie  dutvonwool  increased  the  im])ort8  frmn  the  Argentine  Ke])ubli«; 
from  $;{,19'7,030  in  1894  to  $7,075,270  in  1895.  In  bStll  only  $809,0;51  of 
our  inijjorts  from  the  Argentine  Kepublic  were  subject  to  duty,  and  in 
1895  (uily  $238,288. 

It  will  thus  be  seen  that  in  the  matter  of  tarilf  the  advantage  ip 
entirely  on  the  side  of  the  Argentine  Jvei)ublic  in  our  commerce  with 
that  country:  and.  in  its  eagerness  to  remove  the  protection  that  had 
made-  our  sheci)  growers  })iosi)erous,  the  last  (Congress,  by  the  removal 
of  the  duty  on  wool,  without  asking  reciprocal  concessi(ms,  was  throw- 
ing awny  an  oi)portunity  to  ]nom<>te  our  expoi-t  trade  that  wouhl  have 
been  greatly  ai)preciated  by  the  manufactui'ers  or  the  United  States. 

Although  we  nuiy  compete  in  the  Argentine  markets  with  cither 
Great  Britain,  1^' ranee,  Gn-many,  or  Belgium  on  even  terms,  the  condi- 
tions are  sncli  that  it  is  .ibsolutely  necessary  for  our  exporters  to  have 
some  advantages  to  offset  those  enjoyed  by  their  l-'uiopean  comj)eti- 
tors,  and  the  advantages  they  leciuire  can  only  be  obtained  through 
legislation  of  our  Congress  and  dijjlomatic  negotiation. 


i:m:ii.: 


86 


UKCIPROCIT \'   STATEMENTS. 


RAPID  DEVELOPMENT   OP   AllGEN'l       E   INDUSTRIES. 

T1k5  coiiimercial  i)ros])ects  iind  ])ossibilitie!s  mat  are  offered  in  tliat 
market  are  well  sugj^csted  in  an  address  recently  made  by  IVIr.  William 
Wilson,  cliairiiiaii  of  the  ^Iort,uaj;e  Coiiii)any,  of  the  l\iver  Plate,  to  the 
stockholders  of  that  eorporation  iu  London.     He  said: 

NotwitliHtiiiuliiij;  ii  serious  decline  in  tlio  niiirkct  v.ilne  of  ahno.st  all  Argentine 
]>ro(liH!t»,  tlio  ]»r()(luctivo  industry  of  the  country  htm  (lurin<;  tlio  last  few  years — 
during  years  when  tliere  were  excejjtional  causes  tor  its  contraction — greatly 
exjianded,  and  it  is  now  rapidly  ex])anding.  The  ex])en(liiure  of  the  years  of  boom 
has  not  all  been  tliiown  away ;  the  iuiinigration  introduced,  the  i)ure-br<'d  cattle  and 
sliceji  inii)orted,  tlie  ])orts  made,  and  llu;  railways  constructe(l  are  to-day  holj)ing  the 
]>rogr(!ss  of  the  country,  and  promise,  with  the  relurn  of  immigration,  with  ])eaee 
and  a  fairly  good  (iovernment,  to  make  the  progress  greater  and  more  rapid  tiiau  the 
moHt  sanguine  in  iMiropir  believe.  Addressing  you  ju^e  in  1H[H),  I  said  that  it  was 
es(imated  that  there  were  in  the  Argentine  liepublic  lt,lOO  sipuire  miles  of  land  under 
cultivation;  to-day  it  is  estimated  that  there  are  ov(^r  1(5, ()(•()  square  miles.  Mr. 
(ioodman,  an  authority  on  wheat  growing,  tells  ns  that  in  foni'teen  years  an  inqtort 
of  177, (M)()  tons  of  wheat  was  converted  into  an  exjiort  of  l,(iU(),()0()  tons,  'i'liere  is  no 
8U<!li  rei^ord  in  any  otiier  country.  Jii  T^JiO  -wheat  growing  lirst  began  to  assume 
large  itro]»ortions.  This  8eas(m  82,000,000  bushels  were  grown;  ii»  18! t3,  90,000,000 
bushels  were  ]>roduced. 

'I'he  amount  of  wheat  ex))orted  iu  1891  was  1,600,000  tons,  and  in  189.5,  owing  to  a 
])oor  croi»,  the  oxjxjrt  was  little  over  l,0OO,0tK(  tons.  The  Argentine  Republic  has 
suddenly  taken  third  ]dace  as  an  >  xj)orter  of  wlieat,  Russia  aiul  the  I'nited  States 
having  the  lirst  and  second  places,  and  the  wheat  there  grown  was  exjiorted  t"  ]iay 
when  t  lie  )irice  of  \vli"at  in  Enroix!  was  lower  than  it  had  ever  been  before.  The 
greatci'  |Kirt  of  the  best  pastoial  and  agricultural  land  iu  the  Argentiiu' Republic 
lies  within  a  r.'idius  of  300  miles  from  liii<-no8  A>  res,  and  I'or  wlieat  at  present  the 
average  distance  from  station  to  seaboard  ij  100  miles,  :•  "ompared  with  1,000  miles 
iu  the  United  Slates. 

Twenty  years  ago  all  the  sugar  consumed  in  the  Argentine  Republic  was  imjxirted. 
Iu  ]H'.)2.  ."iDjOOO  tons  were  produced,  and  iu  189,">,  ll'O.OOO  tons.  Th<'  excess  of  production 
o\e,r  consumption  for  ISO.")  is  estimated  at  30,000  tons.  The  maize  exported  during 
189")  was  7;!1,000  tons,  the  aveiage  export  for  the  previous  th'ee  years  lieinit  271, 30() 
tons.  The  ))rodu<tion  of  linseed  rose  from  31,000  tons  in  lh!U>  to  104,000  in  1891.  aud 
to  2."0,740  'ous  during  <  hveu  months  of  lH9.i  to  Nnvenibwr  30.  Oats  grow  well  on 
the  Atlantic  coast,  and  will  jiroliably  be  (exported  this  year.  The  vinevards  of  th«i 
country  have  beeji  greatly  extended,  and  wine  is  now  nuide  in  very  large  iiuantities. 

I  li.'ive  referred  to  the  increase  of  agricultural  products  tirst,  not  lieci'iiso  these 
products  are  the  most  important,  but  because  \Ii«  agricultural  are  the  most  re(  e|itl,V 
st.irled  industries,  aud  the  industries  that  have  on  the  wlnde  advanced  mod  ti\|di||,V  ) 
and  my  obi'"ct  is  tii  show  the  progress,  not  the  position,  ol  the  ('oiniiiy. 

The  nuinbers  of  live  cattle  exported  monthly  to  Mrazil  aud  Europe  have  greatly 
ini  M'ased,  ajid  this  trad(!  ])romiseM  lo  become  so  very  im|>orta!it,  that  the  herdsof  tlie 
l»'i\er  Plate  countries  have  taken  anew  and  much  hinlier  value.  The  iiinnber(d'  live 
cattle  shipped  iu  1892  was  l(t,5)0;  the  nuiuher  shipjicd  iu  189.")  was  120,000.  The 
exjiort  of  siiet']),  too.  han  yearlv  liceome  greater.  Tli<'  number  of  live  sheep  exported 
iu  l^!t2  Wtts  ir.,379;  in  IHlV)  it  was  1,51,(100.  The  export  of  frozen  sheep  was  iu  1883 
17,1(>5  eurcasses;  in  1S91  it  was  l,riOO,000,  and  for  elev(ui  mouths  ol  189.5  it  was 
l,7l2.t»Ht.  For  the  year  it  will  i»robably  be  2.0l'0,0li0.  Kx(  client  bnttc^r  is  uuide  iu 
the  country,  and  this  promises  to  become  a  very  important  export.  TIumc  seem  to 
be  n«.  reliable  statistics  of  shipments  \nilllve  news] tapers  to  hand  ctimi)laiii  of  this); 
but  we  ktu)\v  that  two  steamers  alone,  iu  the  early  i)art  ot  Decendier,  brought  to 
I'.Mi'ope  117  tons  of  butter,  and  we  lusir  ol  largcuamtiaits  for  shipments  being  entc^red 
into.  A  country  favored  w  itli  a  tine  climate,  in  whi<'h  a  good  cow,  costing  JJ3,  can  bo 
kept  for  1.5  sliilliugs  per  annnni,  rdmuld  be  aiile  to  competi^  in  the  production  of  but- 
ter with  any  country  in  tin*  world.  When  you  remember  that  in  the  Argentine 
Republi*  there  are  millions  of  acres  ol'  Dm  ilihest  pastoral  lan<l  aud  hundreds  of 
thousands  of  cows,  you  \m\[  see  what  an  linpoillliit  expoii  butter  may  become. 

Mr.  Kdward  I..  Ilaker,  who  hits  hi-cn  a  consul  of  the  United  States 
in  the  Ai'j;cntine  Ift  pu'ilic  for  nuiiiy  yetiis,  and  is  oneol'the  ablest  men 
in  our  <'oiis»ilar  serviee,  in  a  recent  report  to  the  Secretary  of  State, 
^';»\»'  sonic  ('ot;ciit  reasons  why  the  e\|toit  tiiidc  of  th(^  United  States  is 
handicapped  and  why  the  l>iilk  ot  it  j^oes  to  Kurope.    Tlie  facts  and 


RECIPROCITY    STATEMENTS. 


87 


urjjninoiits  lie  presents  can  not  be  too  widely  published,  and  are  worthy 
of  insertion  here: 


ntl.v 
llio 
livn 
Tlin 
it.'.l 
iss:{ 

\v;lH 

ill 

II    to 

lis); 

to 

■c.l 

II  lit) 

Imt- 

iii(> 

ot 


WHY  THE   BULK    OF  ARGKNTINK    REPUBLIC   TRADE   IS    WITH    EI'ItOPE. 

As  we  have  seen,  the  share  of  the.  T'liited  States  iti  all  these  tijj;iires  of  imiiortation 
and  exi»oi'tation  has  been  ami  contiiiucs  to  lie  a  very  small  one.  'i'lie  hulk  ol'  the 
Argentine  import  traile  has  been  from  the  liej^inninu'  and  eontimies  to  he  with  <irrat 
Britain,  with  France,  Germany,  and  HelLjiiim,  followinji  after  in  the  order  niinird. 
Tins  causes  which  have  <;iven  those  countries  tlieir  su))reniaey  are  no  niyst.jry,  lint  are 
jtateut  to  all  careful  oliservers;  and  they  do  not  to  any  jrreat  extent  dejiend  n|ion 
any  peculiarities  of  the  trade  wliicli  they  have  learned,  nor  do  they  result  from  any 
close  study  of  the  supjioHcd  wants  and  tiistesof  the  jieoiile.  Of  cours*'  wants,  lastis. 
and  jteculiarities  are  consulted  where  tluiy  exist,  hut  these  ;iie  not  the  prinu^  rrason.s 
which  have  secured  to  tlieiii  in  ureat  part  the  control  of  the  Argentine  trade. 

(ireai  lirUain. — In  the  case  of  (ireat  Uritain,  whicli  (|uite  mono]ioli/es  the  imjioits, 
we  have  to  yo  back  for  the  causes  to  the  bei;innin;;cif  the  Ar;icntine  lvepubli(!.  'I'he 
peo])ie  of  that  Kingdom,  imuiediately  alter  the  Ari;entine  \^  ar  of  indejundem  e,  seek- 
iiif;  new  Ininies  for  themselves  and  new  outlets  for  their  manufactures— at  a,  timo, 
in(leed,  when  we  may  be  said  to  have  had  no  manufactures — came  in  trading- coh.nies 
to  the  River  Plate  and  became  part  and  parcel  of  th(;  country.  The  basis  of  the  lirst 
En^ilisli  settlements  here  were  the  armies  of  (Generals  Whithxlc  and  lifresforil,  which 
in  1807,  after  the  surrender  of  one  and  the  defeat  of  the  other,  were  so  scattered 
tliroufih  the  interior  that  but  few  ot  the  rank  and  lib;  ever  got  home  atjiiin,  but 
married  and  settled  in  the  country,  some  eiifin^inji  in  sheep  lariiiinic  and  some  in 
trade.  As  the  treaty  of  connnerce  with  (ireat  Britain  conceded  to  her  siibjectii 
almost  unrestricted  tradinp  ri.i;hts  and  ]>rivile}re8,  witkftjl!  protection  for  their  lives, 
their  stock,  and  their  merchandise,  with  exemption  tt\si\  forced  loans  and  exactions, 
others  from  that  nation  imuiediately  followed.  sonif>  i'  thcui  men  of  "  I'alth  anil 
position. 

These  newcomers  purchased  land*^  properties,  and  many  of  tlu^ai  Ixitannie  shei'p 
farmers,  the  Scotch  and  the  Irish  beiTig  the  pioneers  in  that  industry.  wbi<-  ii  has  now 
jrrown  to  such  vast  projiortions;  or  tliey  eTijiajred  in  tin-  t'lrciiiu  tr.-iile.  uid  tlins  at 
once  tixed  and  exjiandcd  tht-  coninierce  Wtween  Gri'ai  }5rit.iin  and  tJae  Arprutine 
Republic,  some  of  the  iMijjlish  housi-s  now  doinj:  bu.imc-s  m  the  Kiver  Plate  Lavinj^ 
been   fouiuled  upward  of  a  century  ajio.     '!'he\    --  ir  •  p|ioitMtiities,  a,nd  they 

l/ave  made  such  good  use  <il'  theui  that  that  Km-  i  jow  has  the  coutnid  ol  iLie 
Argentine  trade.  The  Eujriish,  Seoteh.  and  Irish  settlers,  and  their  descendants  in 
this  part  of  South  America  are  numberetl  hy  teu^of  thousauds.  '<»ver  and  above 
'their  mere  commerce,  with  its  gigantic  i)ro]>ortiirm-  tiiere  is  now  invested  all  over 
the  Argentine  Republic  an  immense  aiuouni  of  UriTish  caiiital  in  ■staneia  and  otlier 
lands,  in  cnlth'  and  shei^p  farming,  in  manutactnreH,  in  mining,  lu  river  ste.-imers,  in 
iilihvii\H,  ill  |riiiii\ui]H,  in  public  works,  in  gas  couiiianies,  in  luiiiking  insliliitioiiM, 
etc,     ThllH,  wllh  llielt  litiiiu  ihmh  niercnnlile  eHtalili^limcutN  in  this  city  and  ii'usarii* 

fiui  the  lliiliiy  lines  of  steamships  bet  ween  the  polls  of  ()r(>at  Hritaiii  and  the  !»i\er 
'late,  nothing  is  hicking  to  assist,  dispatch,  and  indelinilely  augment  [\h\  commerce 
wliieh  tiiev  now  soconipletely  control,  or  strengthen  the  foothold  which  they  already 
possess  ill  the  country.  More  than  this,  the  !hi*ish  penjile  hiivf  other  large  amounts 
Invested  in  the  seciii  ilies  of  the  iiiif  imi ;  and  their  coniuieniii).  jinancial.  and  business 
relations  are  nof  (m|y  !)||  cHtilblished  (act,  lull  t|lcy  could  JMIidly  be  iiiore  iiit  ii|i!i|e  of 
more  coinplele.  Tlifey  ilJ-B  Ilio  liiililierB,  lirokors,  and  challtiiiH  ol  tjie  .(){jn|illiji) 
h'epublie. 

Fratitr. — Though  the  I rade  relations  of  I'rance  with  the  Argentine  h'epublie  are 
not  80  (!oini)lete,  they  are  (|iiite  as  siunilicaut  as  those  of  (lieiit  Mi  Itaiii.  At  the  same 
time  the  social  intercourse  id'  the  two  nations  is  even  liioio  friendly  ami  cIii.hc.  'j'lui 
Argentines,  when  tliey  traMl,  go  to  I'aris,  and  tlie  I'lencli,  in  return,  furnish  t|ii8 
country  witii  its  fashions— of  course,  su]i|tlyiug  wliatevir  enters  into  the  fashiiiii 
account.  'I'lius,  there  is  now  a  French  colnny  here  in  Miieiios  A.\res  of  over  lit), (1(10 
peojile,  all  engaged  in  trade  or  business  of  sunie  kind,  and  I'reiieh  trade  greatly 
profits  by  the  fact  that  a  largt*  proportion  of  the  dry  goods  merchants  of  Hiicuoh 
Ayres  are  French  or  have  connection  with  Paris  houses;  that  the  modistes  June  are 

iirineipally  French,  that  the  shoe  shops  arc  l''ren(h,  that  the  fiiinishing  shojis  are 
'rench,  that  the  tailors  are  French,  that  the  hatters  are  l-'rench,  since  orders  in  all 
these  trades  and  lines  of  goods  are  in  great  part  sent  directly  to  P.iris.  In  addition 
to  this,  tin-  Argentines  drink  French  wines  and  biaudics  ami  eat  I  leiich  pn^parations 
of  food,  preserves,  (confectionery,  etc.,  while  the  ten  thousand  dilVerent  articles  of 
fancy,  vertu,  and  art,  whidi  the  French  know  so  well  how  to  iiuike  attractive  and 
which  so  jtander  to  wealth  and  fashion,  have  no  ditliculty  in  finding  a  sale  here  and 
adding  to  the  imports.  Put  the  French  trade  within  the  last  few  years  has  taken  a 
wider  range,  and  now  French  experts  make  annual  visits  to  the  Rivor  Plate  to  buy 


88 


RECIPROCITY    STATEMENTS. 


lip  the  wool  clip,  the  quantities  of  that  staple  which  go  forward  to  Dunkirk  for  a 
murket  increasing  every  year  in  amount.  In  the  tinancial  lino  also  tlie  i'rfnch  liave 
made  some  ventures,  and  it  is  understood  that  a  good  many  niijlidus  of  Argcnlino 
bonds  and  other  securities  are  now  held  in  Paris.  Thus,  with  a  I'Kwicli-Argentino 
bank  in  this  city  to  facilitate  exchanges  and  two  or  throe  linos  of  8teanislii])s  i)lying 
between  the  ))orts  of  France  and  the  IJivcr  I'lato,  it  is  not  sur[)ri8ing  that  the  trade 
relations  of  the  two  countries  are  reciprocally  satisfai^tory. 

Gvrmanji  and  Jich/iiim. — Uoth  of  these  countries  have  a  well-delined  trade  with  the 
Argentine  Kepul)lic,  not  commanding  in  tlie  iunonnt  of  imports,  but  reliable,  and 
with  a  tenden<\v  to  further  developnu^nt.  It  is  only  within  the  last  lew  years  that 
the  Germans  couunenced  operations  here  on  any  considerable  scale;  but  they  are  tlie 
most  persevering  and  painstaking  merchants  in  the  world;  and  that  they  have  (^ome 
here  "to  stay"  is  evident  from  the  maimer  of  their  business  and  the  nu^thods  tliey 
have  adopted  to  push  it.  Tliey  have  in  the.  country  run  their  distinctive  hoiis<'s  with 
full  supplies  of  trained  business  men,  all  of  whom  speak  Spanish  and  J'Inglish  as 
fluently  as  their  native  tongue.  They  have  established,  also,  at  least  two  lines  of 
steamships  with  the  Kiver  I'lato,  and  have  an  Arg<'Mtine-<ierinan  biink  in  successful 
operation.  From  very  small  ligures  the  (ierman  imjiort  trade  is  beginning  to  assume 
considerable  proportions.  The  fact  that  the  (iernians  engaged  in  luisiness  here  now 
number,  with  their  families,  15,000  or  20,000  ])eoi)le,  who,  in  their  social  relations, 
thoroughly  afliliate  with  the  Argentines,  con  (inns  tlu!  commercial  ])rogress  they  are 
making.  As  they  fully  understand  tlie  trade  and  take  a  national  pride  in  ])ushing 
German  goods  to  the  exclusion,  where  it  is  iiossible,  of  those  of  other  countries,  tho 
auguries  are  all  in  their  favor.  What  strengthens  their  ])osition  is  tlie  increasing 
exjiort  bnsiness  which  they  are  doing,  Argent iiie  wools  now  linding  (juite  a  demand 
in  German  markets.  Helgium  was  formerly  tho  great  ontreiiot  of  the  wools  of  the 
River  Plate,  the  auction  sales  at  Antwer))  distributing  the  ]irodncts  to  the  dilierent 
countries  of  the  Continent.  This  trade  is  now  divided  with  Dunkirk,  but  the  old- 
time  trade  relations  of  the  Argentine  Republic  witli  Pelgium  are  still  to  be  seen  in 
the  long  lines  of  m.-niufactnred  goods  which  coutiniie  to  be  imported  from  that  coun- 
try. Tliough  the  Hidginm  colony  in  Pnienos  Ayres  is  not  so  large  as  the  German,  it 
embraces  some  of  the  strongest  and  best  known  commercial  houses,  which  have  direct 
business  connections  with  manufacturing  establishments  at  home. 


HOW  THE    UNITED   STATES   ARE   HANDICAPPED. 

Under  these  circumstances,  is  it  surprising  that  tho  United  States  have  such  a  lim- 
ited commerce  with  the  Argentine  b'epublic'?  With  the  lacilities  of  trade  wliicli  the 
nations  of  Europe  generally  offer  to  tliis  country,  with  the  close  intercommunication 
by  steamahijis  which  exists,  with  the  banking  advantages  whicii  they  enjoy,  with, 
their  estaltlished  business  liouses  here,  with  the  interchange  of  liberal  credits  whicli 
are  so  essential  to  trade,  how  is  it  possible  for  us,  who  are  possess(?d  of  none  of  these 
facilities,  to  comjicte  with  them  for  the  Argentine  trad(>,  even  though  our  goods  be 
really  of  better  i|iiality  and  though  they  would  at  the  same  prices  l>e  ]» referred  bythe 

fieopleof  the  River  Plate?  The  wonder  is,  not  that  the  United  States  lindsdiUiciilty 
n  extending  its  trade  relations  with  the  Kiver  Plate,  but  that  it  can  fiu<l  any  footh<dd 
here  at  all.  With  the  tield  alrea<ly  occupied  by  natifins  which  not  only  ha\  e  a  large 
reciprocal  trade,  but  are  connected  w  ith  this  country  by  a  thousand  dilierent  busi- 
ness aflinities  and  social  ties,  we  ha'-e  little  reason,  with  our  almost  total  lack  of 
modern  trade  methods  to  expect  a  very  large  share  of  Argentine  commerce.  Our 
conunerce  with  (his  eoimlry  at  jirescnt  consists  not  of  a  regular,  certain,  diversilied 
trade,  but,  in  great  part,  of  such  raw  materials  of  fiiiiiio  necessity  as  can  not  bo 
obtained  elsewhere.  If  we  eliminate  from  our  imports  to  (he  Argentine  l{e|>nblic  the 
cargoes  of  timber,  of  kerosene,  and  of  agricultural  imph^mentsaiKl  niiH  hinery,  it  will 
be  seen  tliat  what  f <'iiHiiiis  is  a  very  small  item,  so  far  as  dollars  and  iiiiita  are  con- 
cerned. The  truth  is  that,  socially  and  cimimercially,  we  are  straiig('rs  to  tliC  MUffi- 
tine  people.  There  are  not  a  hundred  citizens  of  the  United  States  in  the  e/ill/ft 
country,  and  of  these  not  twenty-live  are  engaged  in  American  commercial  business, 
and  only  one  or  two  in  the  imi)ortation  of  American  manufactnred  goods.  It  can 
scarcely  be  said  that,  in  the  ordinary  lines  of  manufactured  merchandist^,  there  a^e 
any  American  houses  on  the  River  PJate.  The  Imsincss  of  importing  goods  from  tlio 
United  States  is  all  in  tlie  hands  of  foreign  honscB  Knglish,  French,  niid  German. 
It  may  be  safely  inferred  from  this  fact  that  no  orders,  in  the  ordinary  cot/ise  of 
trade,  are  ever  sent  to  the  United  States  if  the  same  goods  can  lie  obtained  /rom  their 
European  correspondents,  and,  other  things  being  equal,  they  prefer  to  buy  from  the 
latter,  if  they  can,  for  the  reason  that  it  is  more  convenient  and  more  expeditions. 

AIWSKNTINE   METHODS  WITH  THE   UNITED  STATES. 

The  method  usually  employed  by  Argentine  houses  in  doing  business  with  the 
United  States  is  very  simple  and  very  satisfactory  to  them.  They  have  their  estab- 
lished correspondence  in  New  York;  and  all  their  orders  for  American  merchandise 


RECIPROCITY    STATEMENTS. 


89 


arc  sent  dirertly  to  them,  who  iniikc  the  purphjises  and  shiptho  goods.  In  each  case 
th(!  Hiu'iioH  Ayros  hoiiso  stntcs  exactly  whiit  it  -vvaiitH,  iiinl  if  there  is  rc(|nirt'(l  any 
«|)ci!ial  inodilications  in  styki,  (iiiish,  or  ijfot-up,  these  art)  left  to  tlieir  correspondents 
to  attend  to.  Tlit»  Anierie.an  luannt'actnrers  of  iifxriciiltnral  niaciiinery  jjcnerally 
crnph)y  cstaldished  houses  ot  tliis  country  as  their  atfcnts,  and  sliip  to  tlu-ni  directly 
or  throujj;h  their  New  York  corro8j)ondents,  a.s  may  l)c  arranged  or  mutually  agreed 
upon.  In  some  lew  cases  representatives  of  American  houses  or  manutacturcrs  are 
sent  down  here,  not  to  sell  hy  sample,  hut  to  oll'er  and  arrange  terms  witli  well-cstah- 
lislied  liouses  for  ])articul.!r  lines  of  goods  or  Hi)ecialties;  anil  such  gnodsare  sent  out 
to  them  as  agents,  in  stock  for  sale  an<l  disiiosition.  This  manner  of  making  tra<Ie, 
though  very  much  like  "playing  sei'oud  liddle,"  in  some  instaTices  has  proved  ((uite 
satisfactory.  It  fails,  however,  to  ]ila(!<*  Americaii  manufactures  ui)on  the  same  hasis 
as  those  esjjecially  ordereil  and  punhased  by  them.  Selling  hy  samj)le  or  orders  for 
goods  to  arrive  is  no  longer  very  greatly  in  vogue,  as  it  has  a  tendency  to  lead  to 
complications,  misunderstandings,  dissatisfaction,  an<l  in  some  c;ises  to  downright 
loss.  In  the  matter  of  Inr.iher  and  kerosene,  there  are  sc-veral  American  merchants 
here  who  make  a  sjxcialty  of  such  shipments,  though  the  hulk  of  the  trade  is  done 
through  foreign  houses. 

HOW   AMKRICAN  TRADE    MAY   UK   INC^RKASKD. 


Even  this,  however,  does  not  go  to  the  "  bottom  '"  of  the  (|ucstion  of  an  increase  of 
our  trade  relations  with  the  Arg<'ntine  Kepublic.  1 1  is  not  by  these  means  alone,  if 
at  all,  that  we  can  ex])ect  to  divide  the  Argiiitiue  trade  more  ei|ually  with  tins  com- 
mercial nations  of  Europe.  They  already  have  too  much  the  advantage  of  us  for  us 
to  gain  much  by  such  expedi«^nts.  During  all  the  years  since  the  Argentine  Repub- 
lic i)ecame  a  nation  they  have  been,  consciously  or  unconsciously,  preparing  to 
monopolize  its  trade.  They  have  established  and  have  now  in  oi)eration  all  the 
facilities  and  ai))>liauces  for  doing  so. 

(1)  They  have  their  numberless  lines  of  steamships  running  to  and  from  the  River 
Plate.  There  is  scarcely  a  day  in  the  week  that  a  steamer  from  some  European  port  does 
not  arrive  iit  Buenos  Ay  res,  and  thus  thoreceijtt  of  merchandise  can  be  counted  on  here 
to  a  day.  The  stimulus  and  im])ctus  which  these  constantly  arriving  ;ind  departing 
steamships  give  to  trade  is  incalculable.  In  this  age  of  the  world  sailing  vessels  are 
no  longer  employed  except  for  the  heaviest  freights,  such  as  coal,  luud)er,  salt,  crude 
sugar,  wines,  kerosene,  or  heavy  machinery.  I'.vcrything  in  the  hardware,  the  gro- 
cery, or  the  dry-goods  Hues  intended  for  the  Huenos  Ayres  market  now  comes  by 
steamers,  and  the  merchant  who  gives  his  order  by  cable  to  his  agent  in  a  European 
port  knows  that  it  will  be  tilled  and  delivered  here  within  twenty-live  or  thirty  (lays. 

(2)  The  advantage  which  steam  counnunication  gives  to  Euro])ean  manufacturers 
and  wholesale  houses  in  their  trade  with  the  River  I'late  is  supplemented  and  enhanced 
by  the  fact  that  the  mercantile  lirms  in  the  importing  business  here  are,  as  a  general 
thing,  branches  of  established  houses  or  mai)ufacturing  companies  in  the  business 
centers  of  the  Old  World,  or  they  are  their  sole  and  innuediate  agents,  and  by  a  long 
course  of  trade  now  have  their  contiden(;e  and  their  business.  They  are  thus  tiuabled 
to  obtain  their  goods  at  times  and  in  quantities  to  suit  their  requirements,  accom- 
panied by  the  most  favorable  terms  ami  credits. 

(;{)  Another  and  most  decided  advantage  which  Europi^  enjoys  is  its  extended 
banking  and  exchange  facilities  with  the  River  I'late.  The  value  of  these  in  the 
geiu'ral  conduct  of  trade  can  hardly  be  ov<'restimatcd.  The  liusincss  of  exchange, 
collecting,  remitting,  and  furnishing  the  needs  of  trade  is  a  must  imjiortant  element 
in  the  details  of  reciprocal  commerce,  and  in  its  way  contributes  quite  as  much  to 
its  success  as  rapid  and  reliable  transportation.  Here  in  Ihienos  Ayres  Great  Britain 
has  five  banks,  France  has  one,  Italy  has  two,  Spain  has  one,  (Jernuiny  has  one,  Brazil 
has  one — all  doing  agcueral  business  in  discounting  bills,  making  loans,  attending  to 
collections,  receiving  dtposits,  issuing  bills  of  exchange,  giving  letters  of  credit, 
transferring  funds,  receiving  goods  on  bills  of  lading,  etc. 

By  these  sure  methods  liave  the  Ic^uliug  nations  of  Europe  laid  the  foundations  of 
a  (ixed  and  permanent  trade  with  the  Argentine  Republic.  They  are  prepared  to 
JiiirKlIc  its  foreign  ( ouuneree  with  certainty  and  dispatch,  and  at  the  same  time  with 
a  profit  to  all  through  whose  hands  it  passes.  This  has  been  considered  by  them  as  a 
matter  of  more  importance  than  mere  panegyrics  on  the  excellence  or  superiority  of 
what  they  may  have  to  sell ;  foi'  they  argued,  and  argued  correctly,  that  if  the  people 
of  another  natiiui  hav«>  a  demand  foi'  any  ]>artirular  article  of  mcrchaiulise  or  mauu- 
fai'ture  they  will  l)uy  it — evc^n  though  it  may  he  ]>erha]>s  inferior — where  they  can 
procure  it  with  the  greatest  facility  and  receive  if  in  the  quickest  time. 

It  would  be  well  if  in  these  respects  the  I'nited  States  could  follow  the  example 
thus  set  them.  Until  we  do,  our  commercial  relations  with  the  River  I'late  must 
remain,  in  a  great  measure,  as  they  are.  In  all  the  years  that  we  have  been  striving 
for  the  trade  of  the  River  Plate  we  have  made  but  little  provision  for  oBtaiuing  it. 


90 


RECIPROCITY   STATEM  ENTS, 


Until  wo  do,  wo  will  increl.y  coiitiiuio  to  hoikI  down  hero  only  sncli  artirlos  an  onn 
not  lie  ]iro(  iirod  tdHowlioio.  Wo  oan  not.  oxport  to  conic  into  a  lar;^c  liusini'.ss  with 
this  country  by  (indin^r  out  tlio  invoice  ])iice8  of  ^ood.s  shijipcd  Ironi  Kiiio))o  :ind 
thinking  to  dn])licato  tlioni.  Wo  Hhuuld  liavo  c1o,ho  ;ind  ric(|ncnt  inlcrconnnnnica- 
tion  with  the  .AijucMitinc  Kcimldic  l>y  nus.'in.s  of  roj^ular  Uncs  of  ntciinior.s;  we  slionld 
have  (lislinctivc  .\nicric:iM  linsineMS  houses  in  Ituenos  Ayres ;  W(^  simuld  li.'ive  more 
HatiN'actoiy  liankinij  facilities;  and,  witii  all,  we  sliouhl  i^ive  tlw!  Ar^ontiuo  Ropuh- 
lic  a  less  loslricted  market  for  its  produi'tn  in  ••eturn  for  our  own. 

Ill  iiddidoii  to  tlic  moans  Mr.  I'liker  liiiH  siijrficstcd,  wliicli  for  the 
most  part  must  be  runiislicd  by  piiviile  (Mit(M'i)risc,  it  wa.s  and  may 
sti!  b(^  possible  for  otir  (lovcM'iimciit  to  iicjjot iatt^  a  reciprocity  treaty 
witii  tlie  Arjientino  liepublic  tiiat  will  be  of  \«'ry  ^reat  advantage  to 
our  e.xport  tiiwb'  in  ease  the  duty  is  icstored  ujioii  wool  that  eomes  into 
this  market  from  coiintiies  that  will  not  oiler  reciprocal  concessions  in 
tiivor  of  the  prodiicis  oC  the,  United  States. 

SHirPINa   AT   BUENOS   AYKES. 

The  foUowinfj  stat<'inent  sliows  the  number  of  steamers  arrivinff  at 
the  port  of  IJuenos  Ayres  during  the  year  1895,  their  nationality,  and 
toinias>e: 


I 


KiitioDiility. 

steam- 
ers. 

Tnii.-t 
registered. 

Xaf  ioimlity. 

Steam-         Tons 

era.       registered. 

-/ 

371 

62 

45 

19 

7 

5 

645, 102 

135,421 

09, 754 

51,200 

7,788 

«,  910 

3              7,311 
I                2  092 

II  i)i;i!l 

(In  in:in 

Spanish 

1   1             1,4.50 
1                    1)65 

Total 

515           927, 990 

if: 

I 


EXPORTS  FROM   THE   ARGENTINE    REPITBLIC. 

Tlie  followinjt'  statement  gives  the  exports  from  tlie  Argentine  llepublic 
by  principal  articles  for  the  last  four  years: 


Articles. 

1892. 

1893. 

1894. 

1895, 

Wheat 

Maize 

I..insood 

Wcol 

Flour 

Hides 

Hay       

tons.. 

do... 

do.... 

do.... 

do.... 

imniber.. 

!iH18. 

470, 110 

445,  935 

42,  987 

1.54.  635 

18.849 

4,041,2*2 

39,  309 
25, 436 

125,  645 

40,  100 

1,008.  137 

84.513 

72,  199 

123.  2.i0 

37.921 

4,  398,  7,55 

53.  523 

25,  041 

201,645 

71,  107 

1,  00,-^.  249 

54,  870 

104.434 

161,9(17 

40,  7,58 

5,  649,  9S0 

47,618 

36.  486 

220, 490 

122,  218 

1,046,000 

804,  509 

2,52,  249 

123,2.37 

55,  865 

3,  Ii93,  306 

a  4.5.5.  171 

AVctlicrs,  liozon 

steers.  Ii\*c   .........   ....... 

d...... 

nuiiiher 

61,908,245 
125, 839 

Slieep,  live 

do.... 

477, 121 

a  Bales. 


6  Number. 


In  tlie  above  table  the  sttitistics  given  for  1SJ)5  represent  the  ex]iorts 
from  the  Argentine  Uei)ublic  to  luirope,  United  States,  and  the  jnineipal 
Brazilian  ports.    The  other  statistics  represent  exports  to  all  ports. 

William  E.  Curtis. 


RECIPROC  i  r V    STATEMENTS. 


STATEMENT   FROM   THE   ARGENTINE   LEGATION. 


01 


Department  ov  State, 

Sir;  I  have  tlie  honor  to  in('h)S(>  for  the  iiilbiiiintion  of  tho  Subcoin- 
inittce  on  lU'ciprocity  of  the  ('oiiiiiiittee  0!i  Wiiys  and  IVIcans  a  letter 
wliicli  Ml.  Vieente  .'  Doniinjiinv,  cliaifie  (Faffaires  a<l  interim  of  tlie 
Argentine  IJepnblii',  na.s  iiersonally  h'ft  at  the  I)ei»artinent  this  niorn- 
inu'  with  a  KMinest  that  it  he  so  transniitte<l.  It  is  (hited  tli-'  ."id  instant, 
and  relates  to  «;ertain  featnres  of  tlie  Ai'j;entine  taiilV  coneeininj;- 
which  Mr.  Curtis,  to  whom  it  is  addressed,  has  heretofore  written  Mr. 
I)oii:ing'iiez, 

i  have  the  honor  to  be,  sir,  your  obedient  servant, 

KiCIlARl)  Ot.ney. 
Hon.  Aluert  J.  IJorKiNW, 

Chairman  Siibcoinmittec  of  Committee  on  Waj/s  and  Means, 

Jlonae  of  iTiepresen  tat  ires. 


LECrAcioN  Ai{(:entina, 

Wasliint/ton,  April  .'i,  189(;. 

My  Dear  Sir:  I  am  in  receipt  of  your  esteemed  eommnniciition  of 
yesterday's  «late,  retnrniii!;  the  tariff  laws  of  the  A;  uciitine  Jle|niblic 
for  1804  and  181)5,  wliieh  1  had  tlie  pleasmc  to  send  yon  a  few  days  ai-o 
in  response  to  your  reciuest  tor  a  list  of  the  Amerieaii  products  upon 
which  duties  were  reduced  by  the  Argentine  llepublic  after  the  removal 
of  the  (bity  on  wool  in  this  country. 

In  your  letter  you  are  good  enough  to  say:  "I  have  carefully  (!om- 
])ared  them,  and  tind  that  the  reductions  in  favor  of  the  IJnit«'d  States 
were  very  few,  while,  on  the  contrary,  the  duty  on  lumber  was  increased 
from  5  to  15  per  cent  ad  valorem." 

1  ask  you  leave  to  correct  this  statement,  i  '.y  the  tarill  law  of  1894 
l>itch,  or  yellow  pine  (pino  de  tea),  which  is  unixnted  into  the  Argen- 
tine Kepublic  from  this  country  in  larger  (piantities  than  any  other 
lund)er,  paid  25  ])er  cent  ad  valorem,  as  it  came  under  the  ^'general 
clause,"  not  being  specially  mentioned. 

Mr.  Buchanan,  the  minister  of  the  United  States  in  IJuenos  Ayres, 
requested  that  such  duty  shouhl  be  reduced  to  15  per  <'eiit,  advancing 
to  this  llgure  the  duty  on  other  Inmlier — white  and  spruce  pine — which 
goes  cliietly  from  Canada  and  paid  5  jier  cent. 

It  was  done  so  to  favor  the  American  product,  and  in  the  law  for  this 
year  it  has  been  maintained. 

Mr.  Buchanan,  in  his  note  to  the  Se(!retary  of  State  dated  October  5, 
1894,  says: 

'I'he  jionition  T  liavo  taken  and  endpavorf'd  in  (n-oryway  to  illnstiate  and  nialce 
>'l<^ar  to  till)  (iovernniont  is,  that  tlii.s  is  virtual  discriinination,  iiiasniiicli  as  all  tlio 
pitch  ])ine  comes  from  the  I  nitcd  States,  whih*  tiio  •;reater  part  of  the  white  ]<ine. 
althoufih  jiassinjj  thron};ti  the  United  Stat(!s  in  l)ond,  conies  orijrinaliy  froiii  Canada. 
I  urged  that  not  only  was  the  course  now  hcinj;  adopted  nnl'air  to  tlie  United  States, 
hut  that  it  i»ut  an  excessive  hurden  on  an  ai  tide  which  nniit  r  normal  conditions 
would  have  a  much  j^rcatcr  consumption;  that  th<'  loss  in  revenue  hy  i)ro|»eily  and 
fairly  adjusting  tlm  (pn  stion  woiihl,  1  lielicved,  he  made  up  liy  au  increased  use  ot 
the  wood,  and  most  important,  as  I  thouglit,  lowering  the  duty  wouhl  inatorially 
lessen  the  cost  and  tlius  henefit  the  ]>eople  of  the  country. 

The  linance  minister  had  i»rcsent  at  the  second  conference  a  nu'inher  of  the  tarilT 
commission,  a  memlur  of  a  large  importing  house,  and  the  secretary  of  the  commis- 
sion, the  purpose  heiug  seemingly  to  sustain  the  i)ositiou  taken  by  the  commission. 


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92 


RECIPROCITY    STATEMENTS. 


After  my  refusal  to  acquiesce  iii  sciveral  propositions  siifjgested  by  the  minister  of 
bacienda,  an  agreen-ont  was  rea(  bed  on  tlie  general  line  I  liad  maintained,  that  the 
valnee.  siuaild  be  revised  in  accordance  with  the  facts  and  that  the  same  duty  ajjply 
to  each  of  the  three  kinds  of  jiino. 

The  prcfeL  t  duty  and  value  per  square  meter  on  each  of  the  three  kinds  of  pine 
lumber  imported  here  is: 


Kiiiil  of  linnbur. 


"Wliite  piiio 

Spruec  ])int' 

Pitch  (or  yi'llow)  pino. 


Duty. 


Per  cent. 

5 

5 

25 


Value  per 
.'iqtiare 
meter. 

Centn. 
45 
45 
50 


i 


Under  the  above,  the  duties  paid  on  the  total  quantity  of  each  of  the  three  kinds 
of  i)ine  imported  from  tiie  I'nitcd  .States  and  C.iniida  during  the  first  six  mouths  of 
this  year  was — 

White  pine $33,076.14 

Spruce  pine 20,116.30 

Pitch  pine 200,  577. 75 


Total 253,770.19 

The  recommendation  of  the  tariff  commission  was  as  follows: 


V.hite  pino  . 
Spriii-f  jiiuo. 
Pitcli  piue  . . 


Value  per 
s(iiiavo 
niL'tor. 


Under  their  plan  the  lumber  above  mcutioued  would  have  paid: 

White  pine $66,  1 52.  28 

Sjuiice  pine 33  ,527. 10 

Pitch  pino 160,462.20 


Total 260,141.58 

Or  $6,371.39  more  than  at  present,  which  would  be  a  "reform"  iu  the  wrong 
direction. 

As  a  result  of  the  conference  the  minister  has  agreed  to  make  ihe  pine  schedule 
read  as  follows: 


Wliito  pino  . 
Si)ni«M(  tiinc. 
IMtcli  ])ino  . . 


Duty. 

Viiluopor 
square 
niotek'. 

Pv  cent. 
15 
16 
1^ 

CeiiU. 

25 
30 

Under  this  scheme  the  lumber  referred  to  in  the  last  two  illustrations  would  pay; 

Wliite  pine $77, 177.67 

Spr-ice  pino 33,  .527.  10 

Pi  tell  pine 72,  207. 79 


Total 182,912.56 

Or  $70,H,")7.i:t  h'HH  tliau  under  the  present  law,  aud  $77,228.82  less  than  under  the 
oomwission's  scheme. 


RECIPROCITY   STATEMENTS. 


93 


45 
45 
50 


45 

25 
40 


.■15 
•-•5 

;jo 


To  make  clear  the  direct  benefit  such  a  clijinjire  would  be  to  onr  yellow  pme,  the 
following?  table,  showip;^  the  ainoniit  whicrli  would  have  been  collected  under  each 
plan  on  the  yellow  pine  shipped  to  this  country  from  the  United  States  during  the 
first  six  months  of  the  year,  is  given: 

Under  present  law $^00,577.55 

Under  commission's  scheme IGC  462.20 

Under  conference  scheme.... 72,207.99 

It  will  thus  be  seen  that  if  the  Congress  adopts  the  minister's  recommendation 
there  will  be  taken  off  our  yellow  pine  about  $2.^t),000  in  duty  in  one  year,  which 
sho.ild  enable  us  to  get  a  slight  advance  on  the  lumber  and  secure  a  greatly  increased 
demand. 

Ill  regard  to  what  you  say  about  Tnacliines,  allow  me  to  state  that 
mowers,  binders,  or  reapers,  and  steam  tluasliers  are  on  the  free  hst, 
while  the  duty  cii  machines  and  motors  of  all  kinds  for  agricultural  jiur- 
poses  has  not  been  increased  from  5  to  10  per  cent,  but  remains  at  5 
per  cent  ad  valorem. 

The  United  States  has  taken  full  advantajife  of  the  free  market 
offered  by  the  Argentine  Kepublic  to  the  manufacturers  of  mowers  and 
reapers  in  this  country,  and,  as  it  appears  in  the  otlicial  publication 
Foreign  Commerce  and  Navigation  of  the  United  States  for  the  year 
ending  June  30,  1895  (j).  233),  the  exports  of  such  agricultural  imple- 
ments have  been  by  far  larger  than  to  any  other  country,  viz: 

Argentine  Kepublic $817,445 

Hussia: 

Baltic  and  White  Seas $101, 783 

Black  Sea 527,652 

629,435 

United  Kingdom 447, 114 

France  424,312 

Germany 375,348 

All  other  countries  are  under  $150,000,  and  the  total  exi)orts 
amounted  to  $3,059,735;  so  that  the  Argentine  Kepublic  takes  from 
the  manufacturers  in  this  country  of  mowers  and  reapers  over  22  per 
cent  of  their  exports  to  all  foreign  lands. 

You  say  further:  "IJailwiiy  supplies  were  taken  from  the  free  list 
and  subjected  to  a  duty  of  10  per  cent."  This  is  tiue  as  far  as  bars  or 
rails  are  concerned.  Locomotives  are  on  the  free  list.  However,  the 
duty  on  rails  does  not  attect  in  any  way  the  factories  of  this  country, 
because,  according  to  the  statistics  of  the  United  States,  such  an  article 
was  notexporced  to  the  Argentine  liejiublic  before  or  alter  the  ])a8sage 
of  the  present  taritt'  law.  I  do  not  tind  that  in  189-4  or  18i)5  a  single 
bar  or  rail  svas  sent  from  here  to  the  Argentine  Kepublic.  But  in  the 
tariff  for  1896  rails,  sleepers,  etc.,  itre  again  free. 

Although  American  merchants  have  as  yet  taken  no  pains  to  increase 
the  consumption  of  manufactured  goods  of  this  country  in  the  Argen- 
tine market,  it  is  already  for  them  the  largest  in  South  Anieiica,  with 
the  exception  of  Brazil,  as  shown  in  the  oHicial  statistics  for  last  year. 
We  have,  I  believe,  a  great  held  for  American  fabrics,  and  two  things 
only  are  necessary  to  develop  considerably  tlu'  commercial  relations 
between  our  countries — that  the  American  manufairturers  should  make 
their  wares  known  in  the  Argentine  lieimblio,  adapting  themselves  to 
the  uses  of  our  market  as  to  cre«lits,  etc.,  and  that  the  taritt"  law  of  this 
country  in  regard  to  our  wool  should  not  be  modified. 

Allow  me  to  refei  here  to  v/hat  Mr.  Baker,  the  United  States  con- 
sul in  Buenos  Ayres,  said  in  his  report  for  1892: 

The  Argentine  Republic  is  a  country  wnlch  for  the  most  part  produces  only  raw 
materials,  the  bulk  of  its  exports  consisting  of  wools,  hules,  skins,  etc.     If  the 


94 


RECIPROCITY   STATEMENTS. 


in 


;il 


United  States  has  no  inarkct.,  or  an  niicertain  market,  (or  such  articles,  or  its  fiscal 
laws  are  such  tliat  it  will  not  pay  to  ship  them  to  onr  ports,  it  is  out  of  thecpu'stion 
that  our  country  can  have  a  very  larj^e  or  a  very  reliable  trade  with  theKiv«'r  I'late. 
Durincj  all  the  twenty  yearn  that  I  have  been  at  this  port  I  have  persistently  son,!j;ht 
to  impress  upon  our  (Jovernnient  the  importance  of  this  fact,  and  have  in  my  r(!i)orts 
time  iind  airain  su<>';ijest('d  that  modiCications  of  such  restrictions,  tlius  stimulating 
a  freer  exchange  of  products,  was  "the  key  wliicli  'vonld  open  a  large  reciprocal 
trade  between  the  United  States  and  the  Argentine  Hcpiiblic."  I  can  only  reiterate 
what  1  have  heretol'oro  so  otten  said,  and  I  do  so  at  the  re(iuest  of  American  mer- 
chants dealing  with  the  Kiver  Plate,  in  tliehopc,  which  they  express,  that  something 
may  be  done  to  case  up  the  situation  and  give  them  the  diance  of  a  market  for 
Argentine  wools  in  the  United  States,  There  is  no  doubt  that  it  would  have  a 
marked  effect  upon  our  commerce!  with  this  country,  not  merely  in  resi)ect  to  the 
amount  of  shi])n!cnt8  from  here,  but,  what  is  more  ini])ortant  to  uf;,  in  the  increase 
of  the  iuiports  hither  of  our  manufactured  goods.  It  is  well  said  that  "business 
begets  l)usiness,"  and  the  opening  of  our  markets  to  the  wools  of  this  country  would 
have  a  direct  olVect  not  only  in  stn^ngthening  our  commercial  relations  w  ith  the 
people  of  the  Argentiue  K<'i>ublic,  but,  what  is  always  desir.able,  in  promoting  their 
goixl  will  and  bringing  tliem  socially  and  politically  nearer  to  us. 

Having  in  view  the  facts  I  liave  stated,  and  considering  that  the 
Argentine  lle])nb!ic  has  on  the  "free  I'st,"  besides  otlier  articles,  mow- 
ers, reai)ers,  thrasliers,  raw  petroleniii,  coal,  coke,  locomotives,  rails, 
sleepers;  has  rednced  the  dnty  on  Inmber  (yellow  pine  and  oak),  on 
canned  goods,  oii  petrolenm,  on  cotton  goods  (ihih  ia?- 1  from  GO  to -0  per 
cent),an([  levies  anioderatednty  on  ail  otherAniericau  products  imported 
there  (5  per  cent  ad  valorem  on  i)lows,  machines,  and  motors  of  all 
kinds  for  agricnltnral  imrposes,  sewing  machines,  rosin,  wire  for  leap- 
eis,  f'Mices,  etc.),  I  ha\c  no  doubt  that  the  (.'omnnttee  on  Ways  ami 
Means  will  see  that  our  tarilf,  from  which  my  Government  <lerives  its 
princii)al  revenue,  deals  iairly  and  liberally  with  the  products  of  tlie 
United  States. 

Trusting  that  you  will  use  your  influence  toward  maintaining  and 
developing  the  mutual  commerce  of  our  countries,  1  have  the  honor  to  be, 
yours,  very  respectftdly, 

Vicente  J.  DoMiNGUEz, 

Hon.  William  E.  Curtis. 


STATEMENT  OF  MR.  GEORGE  W.  FISHBACK,  SECRETARY  UNITED 
STATES  LEGATION,  BUENOS  AYRES. 

The  ( 'iiAiiiMAN.  Will  you  please  state  your  oflU^ial  position  and  the 
length  of  time  you  have  lived  in  that  country,  and  your  opportunity  foi- 
obtaining  infornuition  that  we  seek  to  develop  in  your  testimony,  and 
then  go  on  with  your  statenu'ut  generally? 

Ml'.  I'^rsiinAOK.  I  have  been  secretary  of  legation  at  liuenos  Ayres 
since  18!)(),  and  have  been  there  uniuteriuptedly  up  to  the  present  time, 
and  am  here  on  leave  of  absence. 

The  CiiAiiniAN.  Please  state  what  (ihanges,  if  any,  have  taken  place 
in  the  tariff  regulations  of  that  country  in  respect  to  articles  iknported 
from  the  United  States  since  181)0. 

Mr.  FisiiuACK.  That  I  will  ct)ver  fnlly  in  the  summary  taken  from 
the  tarilf,  which  I  have  in  my  possession  and  will  send  in  to  you,  giving 
you  all  the  lignres  of  changes  which  have  been  made  since  1800  \i\}  to 
the  i)re.sent  time,  and  showing  how  the  rates  are  on  American  manufac- 
tured goods  under  the  tarilf  which  is  in  force  today.  There  aie  three 
difVerent  sets  of  changes,  which  1  have  iu  my  possession  and  which  I 
will  submit  to  you, 


EECIPROCI'l'Y   STATEMENTS. 


95 


OUE  TRADE  WITH  THE  ARGENTINE  REPUHLIC. 


The  Chairman.  Since  yon  liavebotMi  there  what  s\)ecial  <'h'uif>e«  have 
taken  phice  in  tlie  trade  between  the  Argentine  Itepnblic  and  the 
United  States? 

Mr.  FisiiBAOK.  As  to  changes  in  the  trade? 

The  Chairiian.  In  tlie  general  trend  of  trade. 

Mr.  FiSHHACK.  Nothing  except  a  gradnal  increase,  which  has  been 
in  spite  of  the  considerable  duty  on  our  principal  goods,  with  the  excep- 
tion of  agricnltural  implements. 

The  Chairman.  In  Avhat  line  of  articles  has  th(i  increase  of  trade 
been! 

Mr.  FisiiHACK.  A  steady  increase  always  in  the  agricnltnral  imple- 
ments, and  in  kerosene  and  Inbriiniting  oils,  ami  within  the  last  year 
there  has  been  a  marked  increase  in  general  mannfactnred  goods;  iu 
hardware  lines,  for  instance. 

The  Chairman.  Cansed  by  American  drummers? 

Mr.  FisiiiJAOK.  Caused  by  American  'Irummcrs. 

The  Chairman.  Coming  into  the  country  with  samples! 

INIr.  FisiiHAcic.  Yes  sir;  and  showing  that  these  American  goodscan 
be  sold  in  Argentina  as  cheaply  as  German  and  ICnglish  goods,  and  of 
a  better  quality. 

TheCiiAiRi^iAN.  Are  the  English  and  German  manufacturers  our  chief 
comi)etitors  in  that  country? 

Mr.  FisiiHAcnc.  Yes,  sir;  and  up  to  the  time  the  American  drnmmera 
brought  full  lines  of  samples  and  geneial  line  of  manufactured  goods  to 
Argentina  the  merchants  did  not  know  that  the  States  could  sell  as  good 
nuiterial  and  at  as  cheap  rates.  The  ])rin(!ipal  dilliculty  in  the  way  of 
the  United  States  trade  has  been  the  lack  of  satisfactory  credits,  Ameri- 
can houses  always  insisting  upon  (!ash  in  New  York,  whereas  (iernnin 
and  l^'nglish  houses  are  always  willing  to  give  six  to  nine  months' (iredit, 
and  that  has  secured  them  the  possession  of  the  ticld,  and  the  reason 
why 

The  Chairman.  Have  theGei-man  and  English  mannfacturers  better 
banking  facilities  in  that  country  than  the  Aniei  icans  have? 

Mr.  liSHBACK.  Yes,  sir;  iu  fact,  we  have  no  banking  facilities. 


ABSENCE  OF  BANKINCI  FACILITIES. 


The  Chairman.  Briefly  state  what  facilities  theGerrmm  and  English 
mainifacturers  have  there? 

Mr.  FiSHBACK.  Both  the  German  and  English  have  large  banks  doing 
an  enormous  bufuness  and  giving  long  credits,  and  oHeiing  every  faxdlity 
for  rapid  and  favorable  exchange,  and  naturally  favoring  the  trade  to 
their  respective  countries.  An  American  house  has  to  draw  an  exchange 
through  London,  and  in  the  legation  we  ha/e  had  occasion  repeatedly 
to  see  the  discrimination  against  the  American  trade  on  the  part  of  the 
English  and  Gernum  banks.  I  might  state  to  yon  a  case  of  an  American 
who  brought  a  lettei'  of  credit  for  a  given  sum  of  money  issued  by  their 
New  York  branch  on  a  lUienos  Ayies  English  bank,  and  when  he  pre- 
sented that  and  wished  to  draw  some  money  on  it  they  told  him  thai  if  he 
would  have  it  for  <'olh^ctionthey  would  honor  his<diecks.  He  declined 
to  do  so,  and  he  told  tiiem  he  would  come  ba<'k  on  the  following  <lay  ami 
get  their  liual  reply;  tliat  if  they  declined  to  honor  a  letter  of  credit 


1 1 


s 


96 


RECIPROCITY   STATEMENTS. 


drawn  by  their  houso  in  New  York  he  wonld  liave  to  take  other  steps; 
but  they  reconsidered  it  and  stated  that  any  amount  he  wanted  he  couhl 
have. 

Tlie  Chairman.  How  recently  has  the  practice  of  sending  out  drum- 
mers (Voni  tlie  United  States  been  extended  to  .\rgentina? 

Mr.  FisiinACK.  Only  within  the  last  year.  Up  to  that  time  the  trade 
was  done  by  certain  Americans  who  liad  their  representativ'es  in 
Buenos  Ayres  and  caUed  themselves  "manufacturers'  agents,"  who 
would  receive  small  lines  of  goods  and  sell  them  on  commission. 
Naturally  they  could  n<vt  make  much  money  and  did  not  have  capital 
enough  to  swing  the  business  and  allow  for  di tie rence  in  credits,  as  they 
had  to  i)ay  for  their  goods  in  New  York  at  least  on  thirty  days'  credit, 
and  would  have  to  wait  from  four  to  live  months  for  collection  in  Argen- 
tina. The  result  was,  their  life  was  <uily  of  short  duration.  The  success- 
ful English  and  Gernuin  houses  are  houses  with  big  capital,  and  with 
their  banking  facilities  they  buy  their  goods  on  six  months'  credit,  and 
at  times  wait  two  or  three  years,  according  to  the  crops,  for  their  col- 
lections throughout  the  country. 

The  CiiAiKMA-N.  Wluit  do  you  find  the  disposition  of  the  people  of 
that  country  in  respect  to  our  importations  into  that  country  as  com- 
pared with  German  and  English  importations? 

Mr.  FisiiBACK.  The  disi»osition  is  rather  of  indifference  than  any- 
thing else,  and  they  base  it  upon  the  statement  that  our  exporters  have 
never  shown  any  particular  desire  to  cultivate  the  trade  in  Argentina, 
and  repeatedly  ])oiiit  to  the  fact  that  the  United  States  has  no  bank- 
ing facilities  and  no  steamshi])  connections. 


THE  TRADE  IN  WOOL. 

The  CiiAiR^MAN.  Now^,  we  have  had  within  a  few  years  legislation  of 
this  country  that  has  greatly  benefited  that  countiy,  especially  on  their 
wool.  We  have  taken  off  the  tariff  on  wool  and  allowed  free  wool  in 
this  country,  which  has  been  a  direct  benefit  to  the  people  there.  Have 
they  shown  a  disposition  to  reci|)rocate  on  that? 

Mr.  FisnnACK.  AVluii  the  tariff"  of  180")  was  under  consideration  in  the 
Argentine  House  the  duty  on  wool  in  the  United  States  had  then  been 
taken  off,  and  they  stated  that  we  were  not  in  a  position  to  ask  recip- 
rocal iavors  as  a  result  of  free  wool,  because  action  had  already  taken 
])lace,  and  they  'Mitc^tain,  us  they  i)ut  it,  no  illusions  as  to  the  special 
benefits  which  the  Scates  intended  to  give  Argentina.  There  was  a  lack 
of  disposition  in  the  House  to  make  any  reduction  on  American  goods — 
that  is,  in  the  Argentine  Congress.  Now,  the  President  of  the  Repub- 
lic had  promised  the  minister  that  ho  would  recouimend  certain  reduc- 
tions  

The  Chairman.  That  is.  Minister  liuchanan? 

Mr.  FisiiuAOK.  Promised  the  United  States  minister,  Mr.  Buchanan, 
that  he  would  recommend  certain  reductions,  and  in  the  message  he 
sent  to  the  Argentine  Congress  he  urged  that  certain  reductions  be 
made  upon  American  goods,  which  were  done,  to  a  certain  extent,  the 
details  of  which  I  will  furnish  you. 

The  Chairman.  What  was  tlie  general  disposition  there  of  the  sheep 
growers  of  the  Hc^public  in  regard  to  Iree  wool? 

Mr.  Fishhack.  The  general  idea  was  that  it  woidd  increase  the  sale 
of  wool  and  would  iini)rove  the  ]U'ices  in  the  Argentiiu;  market.  They 
argued  that  the  American  buyers— the  Yankee  buyers,  as  they  call 
them — would  immediately  come  into  the  market  and  would  improve  the 


' 


RECIPROCITY   STATEMENTS. 


97 


sales  ii)  ^luantity  and  in  i)riee.  The  better  infonned  prophesied  the 
influence  of  tliat  action  liad  aheady  been  discounted,  which  proved  to 
be  the  fact.  Free  wool  did  not  exercise  any  considerable  influence  ia 
the  Buenos  Ayres  wool  market. 

The  Chairman.  Wliat  would  be  the  effect  if  the  duty  on  wool  was 
restored  ? 

Mr.  FiSHBACK.  Tliere  would  be  no  material  change  in  the  Argentine 
duties  on  American  manufactared  goods  as  they  stand  to-day,  because 
they  have  given  us  a  very  full  extent  of  favors  on  the  goods  which  are 
essential  to  them,  such  as  agricultural  implements,  machinery,  and 
kerosene. 

The  Chaikman.  How  about  lumber? 

Mr.  FiSHBACK.  Lumber  is  just  indispensable  to  them.  They  have  to 
get  it  from  the  United  States  and  they  put  the  full  value  in  tariff"  rates 
that  chey  can.  They  have  a  peculiar  system  of  valuation  also.  They 
do  not  take  tlie  value  of  the  lumber  at  the  port  of  shipment,  but  take 
the  current  uvirket  price  as  the  valuation,  and  then  it  imposes  a  duty 
upon  that. 

The  Oh  vir3IAN.  The  current  market  price  in  the  Argentine  inarketT 

Mr.  FiSHBACK.  Yes,  sir;  so  that  the  duty  is  a  duty  imposed  not  only 
on  the  value  of  the  goods,  but  upon  the  price,  profits,  and  everything. 

The  Chairman.  Upon  freights,  profits,  and  insurance? 

Mr  FiSHBACK.  Everything.  They  send  an  agent  from  the  finance 
minister's  bureau  to  the  principal  importing  houses  and  get  from  them 
the  current  value — Ave  will  say  of  pitch  pine.  They  consider  that  then 
the  vahiation,  the  "affbr)"  as  they  call  it,  and  put  a  duty  on  that. 
That  is  true  all  the  way  through  that  tariff'. 

I  *  AGRICULTURAL  IMPLEMENTS. 

The  Chairman.  Now,  how  is  it  with  respect  to  agricultural  imple- 
ments that  we  export  to  that  country?  Is  tli  same  duty  imposed  there, 
the  market  value  of  those  goods  in  the  Argentine  Republic? 

Mr.  FiSHBACK.  Yes,  sir;  and  those  goods  that  are  on  the  free  list 
coming  from  the  United  States  have  to  pay  the  regular  duty  according 
to  the  tariff"  when  they  are  taken  from  the  custom-house  and  the 
importer  then  has  a  reclaim  for  tlie  amount  of  duty  that  he  has  paid, 
so  each  importing  house  has  to  keep  an  account  with  the  custom-house 
and  has  his  debit  and  credit  there. 

The  Chairman.  Do  we  ship  boots  and  shoes  to  that  country? 

Mr.  FiSHBACK.  !N^ot  to  any  considerable  extent. 

The  Chairman.  Then  our  trade  at  present  is  limited  to  what  class 
of  goods? 

Mr.  FiSHBACK.  The  principal  trade  is  agricultural  machinery  and 
implements,  kerosene,  lubricating  oils,  lumber,  and  general  manufac- 
tured goods. 

"The  (Chairman.  Do  we  find  a  market  in  that  country  for  any  of  our 
cotton  we  manufacture? 

Mr.  FiSHBACK.  No;  for  the  reason  that  the  German  and  English 
houses  send  them  in  rolled  and  packed  as  they  want  tliem  and  as  they 
can  still  them,  and  not  as  the  requirements  are  in  the  American  market. 
Engb'sh  merchants,  friends  of  mine,  have  told  me  repeatedly  if  the 
United  States  exporters  would  conform  to  the  requirements  of  the 
Argentine  market  in  packing  and  shii)])ing  their  goods,  in  regard  to 
length  and  other  ways,  that  we  would  become  a  large  factor  in  the 
market. 

H.  Kop.  2203 7 


98 


RECIPROCITY   STATEMENTS. 


The  Chairman.  How  about  prices? 

Mr.  FiSHBACK.  Our  prices  cau  compete  successfully  with  them,  both 
Eii{?lish  and  Geriiiai). 

The  Chairman.  And  the  quality  is  preferred? 

Mr.  FisHHACK.  The  quality  of  the  States  floods  would  be  preferred. 
Ill  other  words,  their  general  impression  is  that  the  States  have  been 
indinerent  to  the  Argentinian  market  and  made  no  special  ettbi-t  to  get 
into  it;  which  is  true. 

The  Chairman.  Tlieir  great  export,  as  1  understand  you,  is  wool? 

Mr.  FisiiBAGK.  That  is  not  their  great  export;  their  great  exports 
are  cereals. 

The  Chairman.  Describe  the  extent  of  their  exports  of  cereals. 

grain  exports  from  ARGENTINA. 

Mr.  Fishbaok.  Id  is  within  the  last  tive  years  that  Argentina  has 
become  a  factor  in  the  grain  supply  of  the  world.  Last  year  the  out- 
put was  considered  to  be  at  the  time  of  the  last  shipments  about  a 
million  and  a  half  tons  of  wheat.  This  year,  so  far,  the  acreage  is  about 
15  per  cent  less,  but  the  system  of  information  which  they  get  from 
the  interior  of  the  country  is  so  imperfect  as  yet  they  have  not  realized 
what  a  big  wheat-growing  country  Argentina  is,  and  the  shippers  and 
the  elevator  people  in  the  city  of  Buenos  Ayres  are  never  able  to  tell 
exactly  what  pmount  of  wheat  they  will  have  on  hand  at  any  given 
time.  A  system  has  recently  been  adopted  of  getting  communication 
from  what  is  called  the  wheat  belt  of  Argentina,  which  consists  of 
three  provinces,  namely,  E]ntre  Itios,  Santa  Fe,  and  Buenos  Ayres. 

The  Chairman.  You  do  not  give  the  export  in  bushels,  but  you  give 
it  in  tons? 

Mr.  FiSHBACK.  Yes,  sir;  in  tons.  The  statement  of  the  amount  of 
wheat  shipped  during  the  year  1895,  in  bushels,  its  price,  its  freight 
rates,  I  can  give  to  you  when  I  submit  to  you  the  other  information. 

The  Chairman.  Can  you  give  the  statistics  for  the  last  tive  years 
annually? 

Mr.  FiSHBACK.  No;  it  is  only  for  the  last  year  that  they  began  to 
organize  a  statistical  bureau  in  regard  to  cereals. 

The  Chairman.  Where  does  that  country  come  in  competition  with 
America  in  regard  to  wheat,  in  the  English  and  other  European  mar- 
kets? 

Mr.  FiSHBACK.  In  the  European  markets. 

The  Chairman,  At  what  rate  per  bushel  can  they  produce  their 
wheat  there? 

Mr.  FiSHBACK.  That  I  would  have  to  iigure  for  you  and  can  give  you. 

Mr.  Tawnev.  Do  you  know  the  cost  of  producing  wheat  there  as 
compared  with  the  cost  of  producing  wheat  here? 

Mr.  FiSHBACK.  Yes,  sir;  I  can  give  the  tlgures.  I  have  them  among 
my  other  papers,  and  can  give  an  exact  estimate  made  of  it.  I  can 
further  give  you  an  estimate  of  the  exact  cost  of  the  production  of 
wheat  in  the  Argentine  Kepublic. 

The  Chairman.  You  will  tile  that  with  us? 

Mr.  FiSHBACK.  I  have  brought  all  of  that  with  me  to  enable  me  to 
answer  these  ijuestions,  which  1  thought  you  might  init.  I  have  them 
among  my  jiapers. 

The  Chairjian.  Before  we  leave  the  wheat  trade  I  want  to  learn 
this  fact.  Is  that  industry  on  the  increase  in  that  country;  and  if  so, 
about  what  iiercentage? 

Mr.  FiKUBACK.  The  jiercentage  I  would  have  to  figure  out  carefully 
for  you,  but  the  increase  is  undoubt^id. 


RECIPROCITY    STATEMENTS. 


99 


Tlio  Chairman.  Are  you  familiar  enougb  with  the  country  to  give  us 
the  limit  of  increase? 

Mr.  FiSHBACK.  Yes,  sir;  I  can. 

The  Chairman.  The  possible  limit  of  increase? 

Mr.  FisHUACK.  I  can  also  furnish  you  with  a  rough  map  of  the  wheat 
belt. 

The  Chairman.  I  think  it  would  be  well  to  have  that  statement. 

Mr.  Tawney.  Yes. 


to 


so, 


transportation  facilities. 

The  Chairman.  What  facilities  have  they  for  transporting  this  wheat 
to  foreign  markets,  and  how  are  their  farmers  situated  in  respect  to 
shipping  ports. 

Mr.  FisiinACK.  The  system  of  transportation  as  yet  is  very  crude 
and  undeveloped.  They  send  the  grain  in  sacks,  the  exact  weight  of 
which  I  can  give  you,  along  the  railways  to  the  four  ports  of  shipment — 
do  you  wish  the  i)orts? 

The  Chairman.  Yes;  give  them. 

Mr.  FisnnACK.  Colastine,  Eosario,  Buenos  Ayres,  and  Bahia  Blanca. 
.  The  Chairman.  Give  us  the  distances  from  the  farmers  to  the  sea- 
ports as  compared  with  ours. 

Mr.  FiSHBACK.  The  maximum  distance  I  should  say  would  be  300 
miles  and  from  there  down  to  a  very  short  distance.  During  the  har- 
vest the  railways  find  themselves  unable  to  move  the  wheat;  and  they 
have  as  yet  no  elevator  system,  and  all  along  the  main  railway  systems 
you  can  see  thousands  of  bags  of  wheat  stacked  up  exposed  to  the 
weather,  and  the  damage,  of  course,  from  that  is  considerable. 

The  Chairman.  What  is  the  quality  of  wheat  raised  there  as  com- 
pared with  the  American  wheat? 

Mr.  FiSHBACK.  I  think  it  is  considered  equal  to  it;  just  as  good. 

The  Chairman.  Does  it  produce  as  line  Hour? 

INIr.  FiSHBACK.  Yes,  sir;  as  tine  flour. 

The  Chairman.  So  they  are  our  competitors  in  the  wheat  market 
and  tiour  market? 

Mr.  FiSHBACK.  They  are  very  strong  competitors,  and  they  within 
the  last  two  years  have  begun  to  realize  their  strength  as  a  wlieat- 
producing  country,  and  their  legislation  and  all  the  action  of  their 
commercial  bodies  is  to  make  themselves  felt  as  a  wheat  producing  and 
exporting  factor  in  the  civilized  world. 

The  Chairman.  Do  tliey  export  flour  from  their  country  to  other 
countries? 

IVlr.  FiSHBACK.  Only  to  one  country — flour  to  Brazil,  which  is  just 
beginning. 

The  Chairman.  They  export  a  good  deal  of  wheat  to  Brazil,  too,  and 
that  has  taken  a  large  part  of  our  wheat  and  flour  trade? 

Mr.  FiSHBACK.  A  good  deal  of  wheat  and  a  good  deal  of  flour  goes 
to  Brazil. 

The  Chairman.  Now,  what  is  the  distance  from  their  principal  port 
of  shipment  to  the  principal  ports  of  Brazil? 

Mr.  FiSHBACK.  It  is  called,  roundly,  a  thousand  miles.        , .  ^  . 

EXPORTS  OP  CATTLE  FROM  ARGENTINA. 

The  Chairman.  And  what  is  the  distance  from  New  York  to  Brazil? 

Mr.  FiSHBACK.  It  is  0,380  miles,  or  sonietliiiig  of  that  sort.  Now  I 
will  say  thecattleex])orting  business  has  developed  entirely  within  the 
last  Ave  years.    When  1  lirst  went  to  Buenos  Ayres,  at  the  end  of  18U0, 


m 
111 


it 


100 


RECIPROCITY   STATEMENTS. 


1i  »l 


i  U! 


':       tl,' 


and  (luring  1801  and  1<S92  there  were  no  shipments  abroad  of  Ccattle  on 
the  hoof  nor  iVozoii  meat.  On  January  1,  181M),  I  know  of  one  house 
who  has  contracted  for  137  vessels  alone  for  the  export  of  sheep  and 
cattle.  The  most  of  that  went  to  Deptford,  Enjiland,  which  is  the  slaugh- 
terin.i;'  p^xe  for  London.  There  is  not  a  ship  that  leaves  the  port  of 
liuenos  Ayres  for  Brazil  that  Its  decks  are  not,  covered  with  sheep  and 
cattle.  They  land  them  at  the  port  of  Santos,  and  tliere  take  on  car- 
goes of  coffee — both  there  and  at  Itio — for  either  Eni'opean  ports  or 
North  American  ports. 

The  Chairman.  Are  these  cattle  and  sheep  of  which  you  speak  of  a 
quality  that  compete3  in  the  European  market  with  American  sheep 
and  cattle? 

Mr.  FiSHBACK.  They  are  fully  up  to  the  average. 

The  Chairman.  W1>  at  is  the  fact  about  there  being  any  trade  between 
that  country  and  any  other  of  the  South  American  States  that  inter- 
fures  with  our  dressed-beef  trade? 

Mr.  FiSHBAOK.  The  export  of  dressed  beef  from  Argentina  to  Brazil 
has  begun,  )mt  as  yet  it  has  risen  to  no  great  proportion.  The  planta- 
tion food  of  Brazil  is  Jerked  beef,  which  is  dried  in  the  sun  in  the  Argen- 
tine ]lepublic  on  the  ranches,  and  is  shipped  in  enormous  bales,  and  that 
destroys  the  market  for  our  canned  beef — preserved  beef. 

The  Chairman.  Is  that  trade  on  the  increase  or  not? 

Mr.  FiSHRACK.  Yes,  sir;  it  is  on  the  increase.  The  secret  of  the 
smallness  of  our  business  in  the  Argentine  Eepublic,  and  the  object 
which  will  prevent  its  increase  considerably,  is  the  lack  of  banking  facili- 
ties. It  all  revolves  around  that.  We  pay  a  tribute  to  England  every 
time  we  have  a  commercial  transaction  in  the  Argentine  Republic. 
Nothing  can  be  done  exce])t  on  London.  If  there  were  a  line  of  steam- 
ship service  between  New  York  and  the  Argentine  ports,  banking 
facilities  would  very  naturally  follow  it,  and  that  would  lead  up  to  a 
great  many  other  things.  In  the  last  Argentine  Congress  there  was  a 
proposition  to  subsidize  a  line  of  steamers,  which  irvolved  a  concession 
of  100,000  gold  dollars  a  year  on  the  part  of  the  Argentine  Republic. 
The  proposition  was  accepted  by  a  New  York  mer<;antile  house  of  export- 
ers, who  guaranteed  the  Government  to  lioat  the  company.  The  con- 
ditions were  that  the  vessels  should  be  at  the  disposal  of  the  Argentine 
Government  at  all  times  in  case  of  war.  The  bill  was  defeated  in  the 
Argentine  Senate  because  the  United  States  had  never  shown  any  dispo- 
sition to  reci]>rocate  in  a  like  way,  and  the  statement  was  made  that  the 
moment  tho  States  would  consider  it  favorably  Argentina  was  ready  to 
make  a  generous  concession. 

Mr.  W.  Vj.  Curtis.  That  requires  a  little  explanation  there.  This  is 
a  repetition  of  what  occurred  about  ten  years  ago.  They  did  the  same 
thing  then ;  oifered  $100,000.  Then  we  passed  our  subsidy  bill,  which 
gave  a  dollar  a  mile  for  steamships — you  were  on  the  committee  whicli 
reported  it,  Mr.  Chairman. 

The  Chairman.  Yes. 

Mr.  W.  E.  Curtis.  The  Argentine  Government  was  not  ready  just  at 
that  time.  They  were  in  a  period  of  financial  depression  and  they  were 
not  ready  to  respond  to  that,  and  the  people  who  were  expecting  to 
have  a  double  subsidy  from  us  and  them  were  not  able  to  make  their 
arraugenieuts,  so  although  they  had  the  plans  of  the  steamers  all  ready, 
and  in  one  case  had  (iontracted  for  construction,  that  fell  through. 
Then  the  last  Congress  of  the  United  States  repealed  the  subsidy  act 
so  far  as  this  line  was  concerned,  and  this  left  us  out  without  any  joint 
action. 


RECIPROCITY    STATEMENTS. 


101 


The  Chairman.  Thereupon  Argentina  refused  to  do  it? 

Mr.  FiSHBACK.  Yes,  sir.  This  initiative  ciune from  a  group  of  Aigen- 
tine  moneyed  men  who  wished  to  have  this  line  direct  with  the  United 
States,  and  the  conditions  of  concession  were  so  fiivorable  to  the  Argen- 
tine Government  that  it  received  the  support  of  a  considerable  number 
of  senators  and  very  nearly  became  a  law.  It  will  be  taken  up  again 
in  the  new  session  which  begins  in  May,  and  it  is  thought  by  a  great 
many  will  go  through;  but  they  made  the  statement  in  their  speeches, 
all  of  them,  on  the  floor  of  the  Senate,  if  the  States  shon^ed  any  dispo- 
sition to  cooperate  in  that  way  it  would  receive  no  opposition  whatever 
in  their  houses. 

The  Chairman.  I  think  there  is  nothing  else,  unless  you  think  of 
something  that  will  be  of  benefit  to  us. 

Mr.  FiSHBACK.  When  I  get  together  these  facts  and  figures,  if  you 
will  allow  me  I  will  make  a  little  report  to  you,  including  things  which 
have  not  occurred  possibly  to  you,  and  send  it  to  you  from  New  York, 


STATEMENT  OF  WR.  L.  RODRIGUEZ  DIEZ,  OF  MONTEVIDEO. 

The  development  of  the  exports  of  wheat,  flour,  and  corn  from  the 
River  Plate  has  been  very  great  in  the  last  three  years,  more  tlian  in 
Uruguay.    Argentina  is  a  larger  country  with  greater  export  capacity. 

WHEAT. 

Uruguay's  wheat  is  generally  considered  better  than  that  from  Argen- 
tina— is  heavier  and  gives  more  flour.  The  Argentinians  buy  Uruguay 
wheat  to  mix  with  their  light  classes,  and  pay  higher  i)ric38  for  it. 

The  following  table  shows  the  exports  of  wheat  from  Uruguay : 


Destination. 


Brazil 

Italy 

Enpcland 

Spain 

Argentina 

Belgium 

Franco 

Canary  Islands . 

Germany  

Denmark 

Portugal 

United  States... 


Total. 


1893. 


Quantify.      Value 


Kilot. 

1, 272,  655 

2, 750, 296 

987,  768 

065,  848 

605,  874 

221,  330 

66,320 

21,890 


$25, 579 

64,760 

19,  555 

38, 146 

12, 118 

6,107 

2,474 

438 


169, 307 


1894. 


Quantity.       Value. 


Kilos. 

3,  028, 495 
1,145,758 

49, 100,  502 

4,  428, 929 
38, 096, 668 

3,  472,  274 

5,316,684 

229,  584 

3,299,080 

678,  000 

427, 465 

30,000 


$61, 684 

19,  478 

834,  7U8 

75, 292 

662,943 

69,  029 

90,  384 

3,  903 

56,084 

11,  528 

7,267 

510 


1, 882, 808 


Notice  that  Uruguay's  great  market  for  wheat  is  England,  and  fol- 
lowing that  Argentina,  that  buys  Uruguay's  wheats  and  exports  them. 
Note  also  that  the  increase  of  exports  from  1893  to  1894  has  been  more 
than  ten  times,  and  that  there  are  new  markets  opened. 

I  have  no  accurate  statements  for  1895,  but  I  know  the  exi)orts  have 
been  muoh  greater  than  in  1894  on  account  of  a  large  crop. 


i 


102 


RECIPROCITY    STATEMENTS. 


Uruguay  imported  wheat  from  the  States  and  Russia  in  ISSl).    The 
following-  statenvMit  shows  tlie  exports  of  tU)ur  from  Uruguay: 


Deiiiination. 

1803. 

1804. 

Quantity. 

Value. 

Quantity. 

Value. 

Brazil 

Kili». 
1],400,;)88 
125,  880 
It.  500 

$428,  354 
4,  ;!2S 

;)45 

Kilot. 

333,  30U,  378 

J  53,  000 

2!l,  11)0 

142,  870 

128, 4,'-iO 

60,  320 

51,700 

$948,341 
4  302 

Cnnary  Islniuls 

Argon  titia 

H''fi 

Kiigland 

4, 002 
3  507 

Italy 

France 

1,857 

Portugal !     .1 -- 

1,447 

1 

Total 

433,  027 

004, 372 

As  you  can  see,  the  principal  market  for  Uruguayan  flour  is  Brazil, 
where  the  prices  obtained  are  higher  and.  the  increase  of  exports  tripli- 
cated from  one  year  to  another. 

In  1895  the  exports  were  very  much  larger. 

CORN. 

The  exports  of  corn  amounted  in  1893  to  $23,272  and  in  1894  to 
$885,539,  and  there  was  a  large  increase  in  tliis  line  of  exports  in  1895. 
The  principal  markets  have  been  Brazil  for  home  use,  and  Argentina 
for  exports. 

There  are  no  differential  duties  in  favor  of  Uruguayan  or  Argentinian 
agricultural  products  in  the  Brazilian  or  European  markets.  The  Ki  ver 
Plate  wheats  and  flours  competed  with  the  American  product  in  Brazil 
while  the  reciprocity  treaties  were  operative,  althougli  the  Americans 
were  free  from  customs  duties  and  the  River  Plate  wheat  had  to  i)ay 
them. 

Third.  The  import  duties  in  Brazil  are  higher  for  flour  than  for  wheat, 
and  large  mills  on  the  modern  system  have  been  established  in  liio 
Janeiro  and  Santos  by  Argentina  and  Uruguay  millers  in  order  to  grind 
River  Plate  wheat  and  avoid  competition.  There  are  no  more  wind- 
mills erected  in  South  America.  They  are  all  now  mounted  on  Hunga- 
rian stones  and  moved  by  steam  power. 


CATTLE. 

The  exportsof  live  cattle  from  Uruguay  are  principally  to  Brazil,  value 
amounting  to  $045,713.  The  increase  in  this  line  was  enormous  in  1895. 
In  fact,  all  steamers  leaving  Buenos  Ayres  or  Montevideo  for  Europe 
carry  large  numbers  of  live  cattle,  sheep,  and  hogs  to  Santos  and  Rio 
Janeiro.  ,  .,    -  

BEEP. 

The  value  of  jerked  beef  exported  from  Uruguay  in  1894  was$5,719,029; 
packed  meat,  $4,409;  extract  of  beef,  $2,271,059;  liquid  beef,  $24,300; 
salted  hides,  $4,730,102,  and  dried  hides,  $1,715,344. 

Not  counting  salted  and  dried  calfskins  and  other  animal  products, 
the  prices  of  cattle  on  the  15th  of  January  of  this  year  at  the  stock 
yards  in  Montevideo  were: 

Por  packing  purposes — Bullocks,  from  $12.50  to  $18  per  head;  steers, 
from  $9.50  to  $18;  cows,  from  $7.76  to  $15. 


RE0IPRO(  irY    STATKMENTR. 


103 


ij;;! 


For  lioinoiisc  (best  cattle) — lUillocks,  IVoiii  ijinto  ii<L'2perlM'ii(l;  si  ens, 
-roiu  $11. no  to  $18;  cows,  from  $!>..".(>  to  !J<HJ;  calves,  from  $2.50  to  $(1.50. 

Traiivsit—liullock.s,  $14,150  per  head;  steers,  from  $11.50  to  $15;  eowa, 
from  $7.50  to  $10. 

These  eaitle  leave  the  stock  yards  in  good  condition  for  fattening 
pnrposes.  Steers  weighing  1,000  ponnds  are  not  worth  more  than  $15 
to  $18,  and  those  weighing  1,500  ponnds  or  more,  $20  to  $22. 

The  nnnd)er  of  cattle  i"  lirngnay  is  over  10,000,000  head,  and 
25,000,000  sheep.  Excei)ting  tame  bullocks  all  the  rest  of  the  catt!**. 
are  fed  and  fattened  in  wire  le need  fields  and  yards. 

The  principal  slanghtering  conntry  in  Sonth  America  is  Urugii.ay. 
Its  exports  of  jerke<l  beiif,  salted,  pactked,  and  liiebig'a  extract  are  larger 
than  Brazil  am!  Argentina  together.  Argentina  exports  live  cattle  to 
Brazil,  I^inrope,  and  ('hili.  lirazil  has  not  enough  cattle  in  the  Province 
of  Kio  iJrande  for  home  needs,  and  im])orts  from  Uruguay  and  Argen- 
tina. Argentina's  leaner  Jerked  beef  is  mostly  exported  to  Cuba,  and 
the  fat  Uruguayan  Jerked  beef  to  Brazil.  Lean  cattle  from  Brazil  and 
Argentina  are  fattened  in  llruguay's  rich  pastural  fields,  and  used  in 
the  Jerking  and  packing  houses,  .selling  at  lower  prices  than  native 
cattle,  which  are  considered  better.  The  slaughtering  houses  in  Uru- 
guay are  located  in  the  port  of  Montevideo,  on  the  bank^  of  the  river 
Uruguay,  and  on  the  railway  tracks  in  the  enter  of  the  (!ountry.  Cattle 
are  driven  to  the  packing  hou.ses  or  brought  in  railway  cars.  Cross- 
bred cattle  are  increasing  rapidly.  The  lov/  prices  for  which  Uruguayan 
cattle  can  be  obtained,  with  all  sort  of  facilities  to  breed,  fatten,  md 
manage  them,  are  a  great  inducement  for  capital  and  enterprising  peo- 
ple Interested  in  the  packing  business.  Certain  benefits  are  to  be  drawn 
out  of  this  industry. 

AGRICULTURE. 

The  same  should  be  said  regarding  agriculture.  With  a  mild  climate, 
American  implements,  rich  agricultural  lands,  from  $2  to  $  1  per  acre, 
river  and  railway  means  of  comnumication,  and  low  freights  for  exports, 
if  the  cultivation  of  agricultural  products  can  not  be  don  ■  there  with 
prospects  of  large  incomes,  it  can  not  be  done  in  any  country  in  the 
world.  The  sheep  products  increase  ever  year,  refining  constantly 
the  light,  fine,  elastic,  long  staple  merino  wool  that  is  i^eculiar  to  that 
country,  and  producing  mutton  of  good  weight  and  oxquisite  flavor, 
which  is  well  appreciated  in  foreign  markets. 

WOOL. 

The  removal  of  the  duty  on  wool  by  the  Congress  of  the  United  States 
has  not  affected  the  prices  or  exports  of  wool  in  the  Kiver  IMate;  the 
development  of  exports  to  the  United  States  depends  on  the  needs  and 
develoi)ment  of  American  manufactures,  to  be  able  to  comi)ete  with 
Europeans  for  home  use  and  exports  having  in  hand  good  cheap  material. 
American  buyers  will  purchase  their  stocks  where  they  find  them  more 
convenient  to  their  interests,  in  the  producing  countries,  raw  or  washed, 
or  in  the  great  European  wholesale  markets. 

COMMERCE. 

The  commerce  between  the  United  States  and  the  Eiver  Plate  can  be 
developed — 

(1)  By  American  capital  and  people  interesting  themselves  there  in 
this  business. 


i'l 


w 


104 


RECIPROCITY   STATEMENTS. 


V 


(2)  By  being'  mutually  well  represented  as  ministers  and  consuls  by 
men  acquaiutea  with  North  and  South  American  means  and  needs;  the 
right  men  in  the  right  place. 

(3)  By  direct  line  of  steamers  running  regularly,  and  low  freights. 

(4)  By  facil'ities  of  commercial  exchanges  and  direct  banking  com- 
munications. 

(5)  Keciprocity  treaties  should  not  be  neglected.  The  beginning 
would  be  to  establish  ^riendly  and  commercial  treaties,  embracing  a  few 
matters  of  reciprocity  convenient  now,  with  the  intent  of  extendiug 
them  later  on,  after  seeing  the  results  of  practice  and  study.  Commer- 
cial treaties  can  not  be  made  on  the  same  basis  with  Brazil,  Argentina, 
and  Oruguay. 

In  Uruguay  American  goods  pay  very  low  import  duties;  in  Argen- 
tina, much  higher. 

For  additional  details  I  refer  you  to  the  statistics  from  Uruguay  pub- 
lished in  1895,  \fheve  all  the  trade  details  can  be  found;  the  Hand  Book 
of  Uruguay,  published  by  the  Bureau  of  American  Kepublics  in  1893, 
and  a  number  of  the  Rural  Association  in  Montevideo,  oorresponding 
to  January  16,  1896,  where  special  information  can  be  had. 


m> 


s  by 
;  the 

fcs. 
com- 

uitig 
<few 
[liug 
mer- 
Dina, 

gen- 

pub- 
?ook 
893, 
ling 


APPENDIX   O. 


TRADE  WlTil  JAPAN  AND  CHINA. 


106 


TRADE  WITH  JAPAN  AND  CHINA. 


STATEMENT  OF  MR.  WILLIAM  E.  CURTIS,  WASHINGTON,  D.  C. 

Our  commercial  rclutioiis  with  Japan  are  very  similar  to  those  with 
Brazil.  The  balance  of  trade  affainst^  the  United  States  is  not  so  large, 
but  is  in  the  same  proportion.  We  buy  the  larj^cst  share  of  the  products 
of  Japan,  aiul  she  spends  the  money  we  pay  for  them  in  En<i]and  for 
goods  which  our  manufacturers  might  furnish  of  etjual  and  often  superior 
quality  and  at  similar  prices.  Hut  it  is  our  own  fault.  Wuile  we  have 
been  engaged  in  the  development  of  our  internal  trade,  the  British  have 
captured  the  markets  of  Japan.  They  have  occupied  the  ports  that 
are  open  to  foreign  commerce  with  vast  warehouses,  sample  rooms,  and 
wholesale  and  retail  mercantile  establishments;  they  have  established 
banks  and  other  conveniences  for  trade,  and  although  we  have  excel- 
lent and  adequate  steamship  facilities  comparatively  few  Americans  are 
engaged  in  business  in  Japan,  and  our  manufacturers  have  shown  but 
little  energy  or  zeal  in  introducing  their  goods.  On  the  contrary,  the 
few  American  merchants  that  are  now  doing  business  in  Japan  com- 
j)lain  that  they  experience  great  difiiculty  in  filling  orders  in  tliis  coun- 
try unless  they  are  willing  to  pay  cash  in  advance. 

I  spent  the  summer  of  1895  in  Ja])an,  investigating  the  commercial 
and  industrial  opportunities  that  were  ottered  for  American  enterprise, 
and  had  the  benefit  of  the  opinions  and  experience  of  nearly  every 
American  merchant  in  the  Empire.  The  results  of  my  inquiries  appear 
at  length  in  a  recently  published  volume  entitled 

"THE  YANKEES  OF  THE  EAST," 

and  incidents  are  therein  recited  which  will  astonish  those  who  are 
in  the  habit  of  boasting  of  American  enterprise.  A  notable  instance 
occurred  while  I  was  in  the  country,  aiul  <'ame  under  my  ])ersonal  obser- 
vation. The  municipal  government  at  Tokyo,  whi  h  has  as  good  a  credit 
as  any  city  in  the  world — as  good  as  that  of  London,  or  Boston,  or  Ber- 
lin— was  introducing  modern  waterworks,  and  invited  projjosals  from 
three  American  manufacturers  to  furnish  $(iOO,(K)0  wortli  of  iron  water 
pipe.  Two  of  them  dcjlined  outright.  The  third  submitted  a  bid.  which 
was  very  much  lower  than  any  from  lCuroi)e,  but  was  a('comi)anied  by  a 
stipulation  that  delivery  and  payment  should  be  made  in  the  laiite<l 
States  instead  of  in  Japan,  as  the  specificati.uis  rcipiired.  The  city 
ofticials  of  Tokyo  were  justly  indignant  at  this  refiection  upon  the  in- 
tegrity of  their  government  and  awarded  the  contract  to  a  lielgiau 
manufacturer,  who  accepted  it  eagerly  and  is  said  to  have  made  a  largo 
profit. 

A  second  letiing  for  a  similar  amount  of  ])ipe  occurred  a  few  months 
later,  ami,  having  recovered  somewhat  from  their  indignation,  the  ciiy 
oflicials  again  invited  bids  from  American  manufacturers.  Two  lirniH 
sent  agents  tv  Japan  to  make  inquiries,  and  their  reports  were  not  only 

107 


108 


RECIPROCITY   STATEMENTS. 


I 

11' 

I 
I''  ■ 


r 


favorable  but  were  indorsed  by  the  United  States  minister  and  tlie  con- 
sul-general. When  they  reached  headquarters  in  this  country,  one  of 
the  companies  had  become  frightened  by  a  sudden  increase  in  the  price 
of  iron  and  decided  not  to  take  any  chances  on  a  $000,000  contract. 
The  manager  of  the  other  company  called  a  meeting  of  his  board  of 
directors,  and  laid  before  them  the  reports  from  their  vice-president  who 
had  gone  to  Japan.  After  a  long  and  serious  discussion,  in  which  a  good 
deal  of  feeling  was  disclosed,  a  majority  of  the  directors  decided  that  if 
the  Japrtiiese  Government  wanted  to  buy  pipe  of  them  they  must  agree 
to  have  it  inspected  and  paid  for  before  it  left  the  United  states.  A  bid 
was  submitted  on  those  conditions,  and  a  committee  of  the  Tokyo  com- 
mon council,  having  the  matter  in  charge,  threw  it  out  without  a  moment's 
consideration.  Thecontract  was  awarded  to  a  Glasgow  company.  Thus, 
in  a  single  instance,  profitable  sales  of  $1,200,000  worth  of  merchandise 
were  rejected  simply  from  a  lack  of  confidence  in  the  financial  integrity 
of  the  Japanese,  although  it  may  be  said  that  the  Government  of  that 
Empire  has  never  defaulted  upon  a  contract  and  pays  cash  for  everything 
it  buys.  Directly  or  indirectly  during  the  year  ending  June  30,  1895, 
the  Japanese  authorities  expended  over  ^15,000,000  in  England  alone, 
and  there  has  never  been  the  slightest  complaint  or  criticism  of  their 
conduct  or  integrity. 

The  American  merchants  doing  business  in  Yokohama  will  testify 
that  the  incident  of  the  water  pipes  is  not  unusual,  and  that  nearly  all 
those  who  have  endeavored  to  extend  our  export  trade  in  Japan  have  had 
similar  experience  with  American  manufacturers.  European  merchants 
and  manufacturers  consider  the  commercial  risk  in  Japan  less  than  at 
home,  and  many  of  them  have  resident  agents  seeking  contracts.  This 
alone  is  suflicient  to  account  for  the  existing  condition  of  affairs. 


THE  FOREIGN  COMMERCE  OF  JAPAN. 

During  the  calendar  year  of  1895  the  foreign  commerce  of  Japan 
amounted  to  265,372,756  in  silver  yen,  which  is  equivalent  to  about 
$145,000,000  in  American  gold.  The  Japanese  yen  corresponds  to  the 
Mexican  silver  dollar,  which  is  the  actual  standard  of  value,  and  which 
at  this  writing  is  quoted  at  56  cents.  The  total  experts  during  the  year 
were  136,112,177  yen  and  the  imports  129,260,578  yen,  showing  an  excess 
of  exports  amounting  to  6,851,599  yen. 

Although  for  nearly  six  months  of  the  year  Japan  was  engaged  in  a 
foreign  wi.r,  this  was  the  high  tide  of  her  commerce. 

The  following  table  will  show  the  growth  of  the  trade  since  1872, 
when  the  foreign  commerce  of  Japan  may  be  said  to  have  been  inaugu- 
rated.   The  values  are  given  in  the  native  yen. 


Tear. 

Exports. 

Imports. 

Total. 

Kate  of 
increase. 

1872 

17,026,647 
27,711,527 
28,  396,  386 
52,  407,  681 
79,  527,  272 
113,246,086 
136, 112,  i77 

26,174,814 
23, 964, 678 
36, 626, 601 
44,  304,  251 
62, 927,  268 
117,481,055 
129,260,578 

43,271,462 

51,676,206 

65, 021,  987 

90,711,932 

142,  454,  .540 

230,  728, 041 

265, 372, 756 

Per  cent. 

1876 

16.6 

1880 

25.8 

1887 

51.  1 

1881 , 

47.3 

imi 

61.9 

1806 

15 

During  these  twenty-four  years,  therefore,  the  increase  of  exports  has 
been  671  per  cent,  and  the  increase  of  imports  463  per  cent,  and  that 
of  the  total  trade  549  per  cent.    A  noteworthy  feature  is  the  gradual 


RECIPROCITY   STATEMENTS. 


109 


increase  in  the  exports  of  manufactured  articles,  which,  although  not 
so  great  as  those  of  tea,  silk,  and  other  natural  products,  have  more 
than  trebled  during  the  last  live  years.  The  most  rapid  growth  of  trade 
is  shown  with  Asia,  Australia,  and  the  East  Indies,  which  are  the  nat- 
ural markets  for  the  manufactured  products  of  Japan. 

The  fallowing  table  shows  the  total  value  in  silver  yen  of  merchandise 
exported  to  and  imported  from  Europe  and  the  United  States  during 
the  eleven  years  from  1885  to  181)5,  inclusive: 


Country. 


France 

Great  JJritaiu 

G  erinany 

Italy 

Sussia 

Austria 

Switzerland 

Holland 

Bel{;iuni 

Turkey 

Spain 

Denmark  

Norway  and  Sweden 

Portugal 

Total  trade  with  Europe 
Trade  with  United  States 

Grand  total 


Exported 
from  Japan. 

Tmportod  by 
Japan. 

156,401,502 

35,  594, 814 

60,  524,  095 

281,. 588, 004 

14.  9!I4,  :io;t 

63,  965,  .576 

12,  605,  295 

1,257,825 

a,  ;t43,  537 

5,019,114 

3.  283.  868 

342, 436 

2,  623.  il08 

5,  664.  339 

1,193,707 

491,643 

765,  546 

9, 506,  2a7 

157,318 

30,  809 

136,  036 

319,900 

10.  9:)4 

464, 355 

6,  473 

417,866 

3,  073 

52,  516 

250,  050,  495 

405,  315,  494 

318,446,188 

67,  237,  269 

574,  496, 683 

472, 552, 763 

JAPANESE  TRADE  WITH  THE  UNITED  STATES. 

A  comparison  of  the  trade  of  Japan  with  the  United  States  and 
Greut  Britain  is  even  more  startling.  The  following  are  the  totals  for 
the  last  eleven  years : 


Country. 


Great  Britain. 
TJnit<!d  States. 


Exported 
from  Japan. 


Ten. 
00,  524,  995 
318,  446, 188 


Imported  by 
Japan. 


Ten. 

281,588,004 
67,  237,  209 


Thus  ill  eleven  years  Japan  has  sold  the  United  States  more  of  her 
l^roducts  by  02,395,093  yen  than  all  the  nations  of  Europe  combined, 
and  at  the  same  time  she  has  purchased  from  them  more  than  338,- 
078,225  yen  in  excess  of  her  imports  from  the  United  States.  In  other 
words,  she  has  been  dependent  upon  us  for  a  market  f(U'  iier  staples, 
which  are  silk  and  tea,  and  ought  to  have  been  a  liberal  buyer  of  our 
merchandise.  We  have  the  friendship  of  the  Government  and  the 
people.     Great  Britain  has  their  hostility  and  their  trade. 

IMie  people  of  the  United  States  are  more  to  blame  for  this  com- 
mercial phenomenon  than  the  Japanese.  If  our  merchants  and  m:iiiu- 
facturera  had  shown  the  same  energy  and  patience  that  the  British 
mevchants  have  in  seeking  the  trade  of  .Japan,  the  balance  might  have 
been  on  the  other  side  of  the  ledger.  The  conditions  of  trade  in  Japan 
are  precisely  like  those  in  China,  IMexico,  Central  and  South  America, 
and  the  West  Indies.  The  miMiufactuvera  of  Great  Britain,  Germany, 
and  France,  particularly  those  of  the  lirst-named  country,  went  to  the 
treaty  ports  as  soon  as  Commodore  Perry,  of  our  Navy,  op<'nod  Japan 
to  foreign  trade,  established  agencies,  built  warehoii.ses,  founded  banks, 
and  took  possession  of  the  markets.    They  discovered  what  goods  were 


5 ..  M 


BBg=P 


ti,  ■ 


imii 


i^if 


mm 


110 


RECIPROCITY    STATEMENTS. 


wautod,  and  furnished  what  was  suitable  to  the  peculiarities  and 
re(]uirenieuts  yf  the  i)eoi)le.  Meanwhile  the  manufacturers  of  America 
took  no  interest  in  the  great  market  that  was  being"  developed  there 
because  they  had  so  much  to  do  at  home. 

At  the  same  time  the  European  merchants  in  Japan  have  been  ship- 
l)inj];'  to  the  United  States  the  products  of  that  country  because  our 
people  are  willing  to  pay  better  prices  for  the  luxuries  of  life  than  those 
of  any  other  nation. 

HOW  THE  JAPANESE  TRADE  IS  DIVIDED. 

The  following  table  shows  the  value,  in  silver  yen,  of  the  exports  of 
Japan  to  and  imports  from  various  foreign  countries  during  the  calendar 
year  1895: 


Country. 


United  states 

Franco 

llonj^Uong , 

Cliinii 

Great  Britain 

liriti.ili  ludia 

Korea 

Italy , 

(icrniauy 

Canada  and  otln-r  liritiMh  America 

J{iiHsian  Asia , 

Australia. 


Switzerland 

Austria 

Hawaii 

Holland 

Philippine  Islands 

Belsiiiia 

Kussia 

r urkey 

Spain 

Aui'am  and  otber  Froncli  India 

Siaiu 

Peru 

Denmark 

Sweden  and  Norway 

Portugal 

other  countries 


Total . 


Exports. 


.14, 
22, 

1«, 
i», 

7, 
4, 
y, 

a, 

3, 

1, 
1, 
1, 


028,  950 

OOfi,  ;i86 

362,  802 

laS,  108 

88;t,  240 

H59,  2:i6 

81!  1,470 

550,  735 

340, 022 

980, 169 

247,  523 

281,103 

407.  718 

4.'')0,  025 

393,  089 

283, 382 

194.831 

131,944 

75,  222 

62,  215 

48,  422 

17,  554 

7,  930 

7,180 

5,347 

185 


358. 1S8 


Imports. 


9, 276, 360 

5, 180,  134 

8,  078,  189 

22, 985, 144 

45,172,  110 

12,001,810 

2, 925,  399 

148,  465 

12,2,(3,158 

13,717 

1,371,612 

1,031,725 

1,040,211 

25, 121 

2,  163 
CI,  535 

1, 220,  744 

2, 0ii6,  244 

46,  045 

5,584 

47, 148 

3,  382,  071 

143,  095 

3,  377 
8,319 

208,  335 

7,175 

574,  973 


133,516,985  J     129,200,578 


Total. 


63, 305,  310 

27, 186,  520 

26. 440,  992 

32, 120, 153 

53,  05.''),  202 

16,361,046 

6,  756,  876 

3,  699,  201 

15,  573, 171 

1,  909,  887 

2,619,135 

2,312,8'J8 

1,  507,  929 

475,  746 

395, 852 

344,  918 

1,415,576 

2,198,188 

121,268 

67, 800 

95,  ,570 

3,  400,  227 

151,  025 

10,5.58 

13, 667 

208,  520 

7,175 

933,111 


262, 777, 564 


EXPORTS  OF  JAPAN,   BY   CLASSES. 

The  chief  exports  from  Japan  in  1891,  given  below,  convey  a  fair  idea 
of  the  trade: 

Raw  silk $21, 440, 375 

Textile  fabrics,  mostly  HJlks 8,867,743 

Food  j)roductH,  mostly  rice 5, 416, 098 

Tea 3,965,243 

Coal 3,298,214 

Metals,  mostly  coppL-r 3,015, 180 

Matches 1,897,817 

Dni}i;s  and  uiodiciiies 1,230,811 

Floor  matting 987,746 

Porcelains 742, 426 

Fish  oil  and  vegct  able  wax 639,  095 

Iiac(|iior  ware 398,  769 

Umbrellas 388,031 

Stia w  i)Iaiti iiff 371 . 699 

Bamboo  and  wotxlcn  wari* 289,498 

Tobacco 274,137 

Fans 171,  r,'X\ 

I'apcr  and  ataliouery 163,  320 


RECirBOClTY    STATEMENTS. 


Ill 


IMPORTS  OF  RAW   COTTON. 

The  following  statement  shows  the  number  of  bales,  or  piculs,  of  raw 
cotton  imported  into  Japan  during  the  five  years  from  1S91  to  1895, 
inclusive,  and  the  countries  from  which  it  came.  A  very  large  i)art  of 
that  credited  to  China  and  India  came  from  tlie  United  States,  having 
been  transshipped  both  at  Liverpool  and  Hongkong.  A  picul,  which 
is  the  standard  bale  in  Japan,  weighs  133  pounds. 


Couutry. 

1891. 

1892. 

1893. 

1894. 

1895. 

India 

265, 641 
459, 960 

53,  044 
4,718 

17, 478 

362, 257 
661,826 

91,853 
915 

16,631 

365, 924 
713, 364 

61,  003 
1,101 

10,  326 

446, 203 

621,400 

120,  508 

144 

10,  662 

517, 437 

China 

907,  688 

TInited  States 

119,961 

Korea 

503 

Other  CO untrios...... 

5,938 

Total 

800,  841 

1, 133,  482 

1, 158,  318 

1, 19«,  977 

1, 551,  527 

Frincipal  exports  and  inqwrta  of  Jaj^an, 
EXPORTS. 


Articles. 


Antimony catties . 

Bam  boo 

AVare 

Brouzo  ware 

Camplior catties. 

Carpeta  (hemp  or  cotton) niinibor. 

Coal  and  ilnstcoal tons. 

Cocoons  (pierced  and  waste) catties . 

Copper : 

Ingot do . . . 

Slab do... 

Slieet,  audotiiermamifacturcd  .do. . . 

Copper  ware 

Cotton : 

Raw catties . 

Piece  goods — 

Chijimi pieces . 

Flannel .do. . . 

Tenujiiiiji  and  other do... 

Undersliirts  and  drawers dozen. 

Yarn cat  ties . 

Cuttlefish do... 

Fans number . 

Fisli  and  rape-seed  oil catties. 

Floss sillt  and  waste do... 

Flour do. . . 

Furs number . 

Furniture 

Ginseng catties . 

Glassware 

Iriko  (bfiche  de  nier) catties. 

Ivory  ware 

Kantcn  (colle  vegetale) catties. 

Lacquered  ware 

Manganese catties . 

MatclieB gross. 

Mats  tor  P oors 

Menthol  crystal catties . 

Musliroonr(shiitake) do. . . 

Paper  ware 

Peppermint  oil catties. 

Porcelain  and  earthenware 


1895. 


Quantity. 


2, 413, 185 


2,  238,  386 
685,  536 

1,844,815 
176,  944 

a,  558,  406 
8,  431,  204 
9, 197, 100 


774,  547 

469.  595 

292,415 

1, 046,  387 

70,  057 

3,  532,  893 
6,401,207 

11,573,861 

12, 167,  820 

50,  <)96 

4,  854,  .-)39 
242, 319 


299,  630 
'i,"62i,'82i 


Declared  value. 


1, 118, 773 


27,448,142 
16,  914,  027 


30, 836 
1,  359,  237 


31,900 


Ten* 

289, 935.  30 

283, 138. 09 

417.093.90 

229,  2!)().  90 

1,520.831.94 

1,  635.  902.  08 

7, 604.  788.  22 

178,571.05 

1,  340,  ,583.  72 

1,093,376.02 

2, 123,  700.  80 

101,  341.  66 

171,  926. 80 

585, 908. 66 
400,  519.  77 

1,329,511.58 
90,  992.  52 

1,034,478.70 
990,  029.  95 
399,  519.  22 
572,  060.  16 
14,307.01 
191,848.35 
202,901.82 
103,  4K0.  81 
373,  048.  08 
346,  476.  90 
316,908.71 
100,  598.  79 
449,271.25 

1,  083.  212.  46 
190.598.59 

4,672,811.55 

3,461,369.88 
197,411.27 
522,941.69 
500.  9:12.  08 
112.  809.  92 

1,  955,  060.  13 


1894. 


Quantity. 


2,682,813 


2,071,378 
546,  091 

1,701,130 
268, 381 

9,  645,  269 
6,074,919 
9,683,904 


540, 151 

1, 088, 389 

158, 989 

705,  339 

100,  .586 

3,  538,  808 

9,  483, 425 

9,  049, 034 

16,  804,  319 

109.  493 

3,  309,  420 

175,  937 


326, 172 
"629,167 


1,  298,  422 


29,341,892 
13,  843,  022 


21, 135 
1,339,843 


57,  809 


Declared  value. 


Ten. 

2.54, 

188, 

298, 

183, 

1,023, 

1,134. 

6,  578, 

227, 


261.46 
903. 60 
245. 77 
687.  89 
956.  35 
072.  71 
400.  89 
572. 59 


1,799,435.08 

1,15,5,862.96 

1,94.5,456.36 

134,  970. 19 

119, 153. 67 


1,067, 
221. 
571, 
133, 
055, 

1, 162. 
319, 
084, 
99, 
141, 
111, 
102, 
499, 
258, 
294. 
08, 
495, 
797, 
198, 

3,  795, 

1,965, 
143, 
673, 
303, 
242, 

1,484, 


572. 95 
917.  58 
712.44 
547.  44 
529.  95 

453.  03 
410.24 

538.  82 
'.80.  97 

454.  66 
:)92.  90 
212.08 
798. 07 
9.50.  81 
323.  84 
285. 00 
625.  39 

539.  30 
810.37 
034.  90 
193.11 
107.25 
511.29 
795. 42 
774.25 
853. 84 


Hi 


H 


il 

ill 


-ff 


'  Silver. 


t: 


112 


RECIPROCITY    STATEMENTS. 

rHnoipal  exports  and  tny>or<8  of  Japan — Contiuiied. 
EXl'ORTS— Conlinued. 


Articles. 


I'l 


i4«  ' 


h    ! 


R.nga catties. 

Kico pic  II  la. 

Siiko slio. 

Suit (lit  lies. 

ScreciLS iiiinibcr. 

Seaweeds catt  iea. 

Cut tlo. .. 

Shark h'  liiih do... 

ShclltiHli: 

Awiilii do... 

Kaiiioliasliira do... 

Slirimps do. . . 

Silk: 

Haw do... 

Noslii do... 

Wa.ste do. . . 

HniidkercliipCs dozen . 

Piece  goods — 

Halm  t  ao picci's . 

Chiriineii  and  other do... 

Straw  plaits bundles. 

Suliihur ca  1 1  ies . 

Te.a: 

Green — 

I'an  tiro do... 

Basket  tire ilo. .. 

Dust do... 

All  other do . . . 

Timber,  wood,  and  planks 

Tobni'  o,  leaf catties. 

Ilnili'    Has,  European nunibe.. 

Vegcitablo  wax catties . 

AVood  wai'e 

A 11  other  articles,  unenuinerated 


Total 

Keexported  articles. 

Total  exports. 


189,'). 


Quantity. 


2,  484.  340 

1,  708,  98'J 

1,978,70.5 

24,  087.  0:i2 

1,'J4,  ilO!) 

39,  033, 128 

5,  7i»G,  883 

309,  549 

1,06!),  808 
15!!,  913 

1,  535.  109 

5,  810,  046 
l,5!m.  777 

2,  2l.'5,413 
1,  855,  574 

525, 901 
155,  880 

3,  478,  039 
20,  445,  913 


20,  200,  785 
4,552,100 
6,  415,  472 
1,  592,  238 


2,  039,  999 

1,  0.30,  715 

2,  792, 330 


Declared  value. 


Ten* 

57,  029. 07 

7,  209,  755.  52 

415,  333.  95 

97,  403.  55 
300,  009.  99 
514,275.22 
110,016.14 

95,  880.  45 

390,  800.  26 

3!),  833,  44 

222,  821.  89 

47,  866,  250. 93 
1,347,2.55.92 
1.51,5,40,3.76 
5,  339,  955.  27 

8,354,489.88 

1,  643,  350.  45 

1,  387,  643.  46 

296, 136.  20 


7,  220, 
1,  225, 

308, 
12!», 
261, 
210, 
735, 
334, 
398, 

8,  997, 


903.  27 
080. 74 
017.04 
240.  49 
532.  00 
613.35 
207. 13 
816.  60 
349.  58 
299.  94 


134,991,029.82 
1, 121, 148. 10 


136,112,177.92 


1894. 


Quantity. 


12,  673,  533 

1,42.5,780 

958,  872 

16, 100,  052 

134,209 

35,851,245 

5,91)9,134 

297,  089 

1,10.5,131 

541,710 

1,  283,  965 

5,  484,  059 
1,701,211 
2, 1,53, 120 

1,  435,  674 

434,  767 
130,007 

2,  (162,  697 
21, 103,  646 


25,  720,  434 

4,  615,  370 

5,  340,  500 
1,  807,  223 


1,992,844 
1,  900,  601 
4,401,195 


Declared  value. 


Ten.* 
281,919.20 
5,  595,  398.  49 
180,  101.21 
08,  2.5.5.  97 
282,  349.  38 
407,  235.  32 
139,793.35 
102,215,39 

445,  .570.  93 
127,  930. 12 
171,780.74 

39,  353, 155.  62 
1,032,211.45 
1,570,381.47 
3,  028, 128.  71 

7,  254,  478.  37 

1, 175,  522.  24 

743,  399. 10 

244, 542. 26 


6,  430,  902.  90 
1, 138,  280.  .58 
218,014.90 
113,08-'.  54 
275,  822.  01 
259,  075.  34 
746,  007.  75 
502, 134.  04 
280,  753.  63 
6,808,921.54 


112,171,17.5.47 
1,074,910.68 


113,240,086.15 


IMPORTS. 


Alcohol catties. . 

Aniline  dyes do 

Beans,  oease,  and  pulse do 

(Jausti.,  soda do 

Chlorate  of  jjotash do 

Cigarettes 

Coal tons . . 

Cotton : 

Raw catties . . 

On  the  seeds do. ... 

Chintzes  or  printed  cotton  . .  yards. . 

Drills .".do 

Handkorcliiefs dozens.. 

Satins, broad  or  not yards.. 

Velvets '.do 

Shirtings— 

Grav do 

Twilled do.... 

White do.... 

T  cloths do 

Turkey  reds do 

All  other  cotton  piece  goods.  ..do 

Yarn catties.. 

Dried  sardines,  for  manure do 

P'lax,  heniji,  and  .jute do 

Flour  of  all  kiiuls do 

Hides  (bufliilo  aiul  cow) do 

Indigo  (dry) do.... 


4,894,718 

803, 900 

121,  789.  .578 

5,  855,  175 

1, 734,  734 


68,  931 

143,  468,  259 
11,684,469 

3,  785,  967 
3,093,018 

3,35,  033 

4,  028,  358 

2,  209,  984 

40,  082,  003 
505,  290 

5,  394.  7i<9 
2,945,918 
5,201,1.57 

3,  535,  028 
14,591,083 

432, 342 

8,891,042 

10,  570, 145 

3,915,214 

444, 128 

*  Silver. 


Ten* 
440,  904.  58 
682,137.60 
2,  554,  763,  58 
234,  000.  46 
419,  053.  60 
303,871.10 
853,  079.  79 

24,304,814.23 
517,283.06 
383,  364.  94 
519,972.03 
204,  683.  52 
794,136.27 
486,097.11 


8,071, 
57, 
605, 
241, 
418, 
416, 

7, 082, 
8, 
645, 
413, 
695, 
681, 


495.92 
469. 13 
719.66 
462.  77 
790.  78 
575.  76 
975.  36 
■500.  88 
840.  62 
427. 33 
984.98 
369.  69 


1,  943,  373 

650,  598 

137,  752.  2,55 

4,  622,  642 

2, 492, 548 


37,  247 

108,  415,  609 
11,515,570 
5, 155,  904 
1,381,417 
32H,  0R5 
7,831,153 
2,897,581 

41,  439,  972 
1,753,734 
3,6.58,217 
2,  020,  301 

2,  .302,  398 

3,  384,  697 
15,  942,  797 
10,  412,  625 

7,  069,  472 

16,051,617 

2,  355,  831 

248, 938 


Yen.* 
174, 185. 82 
543,494.38 
2,  977,  794.  64 
205.466.84 
840,  640.  38 
232,  343. 66 
472,  757.  09 

19, 103,  922.  98 
506,  837,  54 
521,097.03 
172,  598.  89 
199,840.51 
1,200,150.63 
700,150.63 

2,  935,  033.  52 
171,094.13 
337,  607. 09 
212,318.16 
225,  285.  30 
41.5,720.38 

7,  977,  365. 73 
193,  630.  38 
537,  924.  96 
641,929.67 
394,  892. 19 
329, 861. 41 


RECIPROCITY   STATEMENTS. 


113 


Prinotpal  exports  and  imports  of  Japan — Continaed. 
IMPORTS— Continued. 


Articles. 


Iron: 

Pig catties . 

Bar  and  rod   (romid,   square,    flat, 
etc.) catties . , 

Plate  and  sheet  (inolndlng  diasonal 
and  galvani/.ed) catties . . 

Kails.andsalvanized  iron  nails,  do 

Pipes  and  tubes 

Wire  and  tele^aph  wire  ...catties.. 

Band,  hoop,  nail  rod,  roofing,  and 

other  manufactured catties. . 

Kerosene  oil Kn^'ons . . 

Lead  and  sheet  lead catties.. 

Leather,  sole  and  other do 

Locomotive  engines,  railway  carriages, 

and  parts  of 

Logwood,  extract  of catties . . 

iMachlnery , 

Materials  for  railways 

Oil  cakes catties . . 

Paraffin  wax do 

Phosphorus,  amorphous do 

Printing  paper do 

Rail do... 

Rico piculs . . 

Salicylic  acid catties.. 

Satins,  silk  and  cotton  mixtures.  .y.avdB. . 

Steam  boilers,  engines,  and  parts  of 

Steel catties . . 

Sugar : 

Brown do — 

White do... 

Tiu do 


Plate:< cases . . 

Watches number. . 

Window  glass cases.. 

Wine,  In  bottles  and  casks , 

Wool catties.. 

Blankets do  — 

Flannels yards . . 

Italian  cloths do 

Housscline  de  laine do 

Woolen  cloths do 

In  part  wool do  — 

AU  other  woolen  piece  goods  and  cot- 
ton mixtures yards . . 

Yarn catties.. 

Zinc  and  sheet  zinc do — 

All  other  articles,  unenumerated 


Total 

Reimported  articles. 

Total  imports . 


1895. 


Quantity. 


58, 859, 698 

73, 639, 244 

29,  305,  915 
24, 280, 896 


6,612,287 

4,  257,  835 

44, 1. '■.2      4 

6,  o:iO,  uol 

3, 120,  488 


967, 670 


57, 189,  965 

2,  557, 704 

160,  447 

2,  8.-):i,  948 

43,  ,304, 127 

1,  68.';,  352 

151,985 

81,587 


6,  919,  739 

111,877,023 

129,  ,548,  753 

537,  631 

48,  564 

188,  722 

110,  364 


2,  829,  556 
1,911,955 
2,  715,  037 
3, 188,  882 
20,  3.33, 183 
2,012,344 
312,014 

1, 184,  400 

889, 163 

6, 392, 504 


Declared  value. 


Ten.* 
673, 795. 70 

2,  085, 684. 09 

1,  038,  793.  59 

1,  279,  407.  00 

604,  753.  36 

348, 146.  86 

168,904.97 
4, 303,  928.  94 

358,  436.  20 
1, 590, 596. 20 


1, 806, 
218, 

4,  090, 

1,  253, 
940, 
260, 
260, 
307, 
925, 

4,  357, 

285, 

37, 

431, 

503, 

4,  074, 
7,  645, 
191, 
251, 
923, 
309, 
314, 
1,136, 

1,  509, 
981, 
921, 

3,  633, 

2,  951, 
169, 


911.40 
838.  86 
526.  28 
343.  22 
027.  56 
340.  42 
822.  78 
699.28 
531.38 
096.  29 
585.  08 
308. 70 
925.  36 
571.  29 

241.39 
864.  94 
936.  08 
131.43 
022.  58 
801.  70 
828.  96 
951.00 
425.  35 
331.  80 
741.  25 
467. 96 
041.  93 
265.  74 


407,  273. 17 

951,  035.  29 

835,  477.  22 

26, 993, 650. 68 


129,  083, 297. 32 
177, 280. 96 


129, 260,  578.  28 


1894. 


Quantity. 


61,081,416 

46, 839, 223 

24, 834, 101 
25, 325, 004 


4, 715,  812 

4, 263, 187 

55,643,719 

4,312,732 

1,  553, 182 


1, 420, 555 


53,  291,  952 

2,729,793 

118,  534 

2,  .5.33,  080 
67, 772, 805 

3,  304,  628 

62,  793 
344,  099 


4, 985,  909 

113,  806,  711 

109,  343, 475 

468, 123 

53,  559 

78,  272 

78,  834 


1,  485,  526 
755.  ,573 
866, 269 
6,481,6,38 
19,  042,  850 
507,  356 
317,  381 

634.  224 

490,  475 

4,  498,  717 


Declared  value 


Ten* 
743, 552. 83 

1, 339, 033. 96 

889, 184. 87 

1,333,149.53 

484, 086.  40 

227, 020.  58 

177, 146.  88 

6, 135,  332.  20 

207,  149.  63 

880, 622.  89 


1, 735, 
303, 

4,201, 
881, 
822, 
263, 
178, 
257, 

1,  209, 

8,413, 
193, 
235, 
215, 
362, 

4,  551, 

8,  689, 

179, 

290, 

404, 

240, 

222, 

507, 

572, 

308. 

1,  759, 

3, 150, 

641, 

175, 


373.  02 
a50.  88 
694.  20 
805.  30 
lil.5.  36 
015.  (16 
231.  88 
857.  38 
205.  40 
148.  20 
677. 32 
505.  06 
1.55.04 
365.  84 

848.  27 
748.  05 
008.  38 
284.  90 
046.  22 
032.  62 
770.  96 
197.  22 
808. 14 
833.  79 

795.  e: 

823. 17 
270.  06 
559.  01 


233, 120.  26 

503,501.38 

493,  824.  06 

21,273,707.56 


117,371,301.43 
110,  594.  03 


117, 481, 955. 46 


*  Silver.     • 
EXPORTS   OF   SILK  GOODS. 

There  lias  been  an  enormous  increase  in  the  exports  of  silk  handker 
chiefe  and  silk  piece  goods  from  Japan,  as  the  following  table  will  show! 


Tear. 

Silk  hand- 
kerchiefs. 

Silk  ]>ieoe 
goods. 

1887  , ... 

$1, 146, 280 
1,233,927 
2,  104,  459 

2,  516,  946 
2,811,820 
3,491,417 

3,  899,  646 
3,628.128 
5,  399,  955 

tl35, 224 

1888  

258,  033 

]8H9  

623,  458 

1890  .            

1,107.808 

1891      .           

1,763,718 

1892  .           .                

4,431.078 

1893                             

4,  074,  993 

1894...            

8,  399,  494 

1895 

9,  997,  846 

ill 


ill 


H.  Rep.  2203 8 


114 


RECIPROCITY    STATEMENTS. 


V    I 


SILK   AND   TEA. 

Tlio  United  Htatos  is  the  lavfjest  buyer  of  raw  silk,  tnkinpr  nearly 
one  lialf  of  the  whole  product.  There  hiis  been  a  eonshlerable  increase 
of  late  in  the  sliipnients  to  France,  whicli  is  the  second  buyer.  Italy 
and  Swit/erland  also  are  takinj?  raw  silk  from  .lapan.  The  United 
States  takes  almost  two-thirds  of  the  silk  i)iece  goods.  Fraiu'.e  comes 
second;  those  two  countries  buy  seven-eighths  of  all  that  is  exported. 
(Jreat  Britain  bought  less  than  i?L'r)(>,0<IO  in  1894,  and  that  was  a  very 
large  increase  over  18!>2,  when  she  bought  only  $30,000  worth. 

The  exports  of  tea  amounted  to  37,.'{90,822  catties,  a  catty  being  Ij^ 
pounds.  One  hundred  catties  make  a])icnl — 133  pounds.  The  United 
(States  takes  three  fourths  of  the  tea  produced  in  Japan.  British 
America  is  the  second  buyer. 

The  following  table  shows  the  general  character  of  the  merchandise 
imported  into  Jai»aii  and  tiui  value  of  each  class  of  goods  included  in 
her  imports  during  the  year  1^94,  the  amount  having  been  redu<;ed  to 
American  gold: 

L'iiw  cotton $9,551,961 

Macbinory 7,  974,  542 

SiiKiir 6.  OdL',  L'tJO 

BieiulstiiH's,  incliuliuf?  rico 5,  S77,  008 

Cotton  viirn 4,  SH8,  (582 

Iron  iind  steel 4,  589,  384 

Woolen  -roods 3, 991,  440 

Cotton  fabrics 2,  8SS,  2(56 

Oil  iMul  wax,  mostly  kerosene 2,  845,  996 

Druf^s  and  medicines 1,  798,  MO 

Dyes  and  paints 986.  61 1 

Furs,  hides,  and  leather 904,034 

Provisions 886, 602 

Copper,  brass,  and  load 876,  973 

Books  and  stationery 451,  782 

Oil  cakes 1 411,  097 

Hemp  and  jute 403,961 

Other  textiles 279.357 

Silk  jroods 2()  1 ,  492 

Wines  and  liquors , 251,  672 

Glassware 183,883 

Clothing 179,811 

PKCULIAIMTIES   OP   THE   TRADE. 

As  will  be  noticed,  raw  cotton  is  the  largest  item  of  imi)ort,  and  it 
furnishes  an  illtistration  of  the  very  rapid  increase  in  the  manufacture 
of  textiles  in  Jai)aii.  The  imports  of  cotton  have  doubled  within  the 
last  two  years,  but  only  $1,340,000  was  sent  direct  from  the  United 
States.  The  balance  was  bought  through  commission  houses  at  Liver- 
I)Ool  and  transshipped  at  that  port. 

Great  Britain  furnished  99  per  cent  of  the  cotton  yarns  and  threads 
and  nearly  all  the  textiles  that  were  imported.  They  consisted  of  cot- 
ton drills,  shirtings,  sheetings,  lawns,  i)rint8,  satins,  handkerchiefs,  and 
velvets.  The  second  item  of  importance,  machinery,  covers  a  very 
large  variety  of  articles,  as  follows :  Electric  plants,  locomotive  engines 
($790,000),  mining  machinery,  spinning  machinery  ($1,429,000),  boilers 
and  engines  ($107,(K)0).    Most  of  it  was  furnished  by  Great  Britain. 

Although  Japan  exjwrted  nearly  $5,000,000  worth  of  rice  in  1894,  she 
im])orted  nearly  as  nuich,  which  came  from  Siam,  French  India,  China, 
Korea,  and  British  India.  The  reason  for  this  freak  of  trade  is  that  the 
l)eople  ship  their  own  product  to  Europe,  where  it  brings  the  highest 


RECIPROCITY    STATEMENTS. 


115 


])rice8,  .111(1  import  a  cheaper  grade  from  China  and  Korea.  The  Jap.an- 
es»^  rice  is  saicl  to  be  the  best  in  the  workl,  and  to  have  a  i)articnhir  liavor 
tliat  iH  more  agreeable  to  Europeans.  (3tlier  breadstiiJls  imported  into 
the  c(mntry  are  beans,  pease,  and  millet,  which  come  mostly  from  China 
and  Kore;i,  and  ab-mt  $;}0({,()()0  worth  of  tlour  from  the  United  States. 

Englan<l  f^rl^sh^^s  the  greater  portion  of  the  iron  and  steel  imported 
into  Japan.  The  principal  items  under  this  head  in  18!)1  were  rails 
($G()4,0<)()),  bar  and  rod  ($<;()!),()()()),  iron  nails  (|(itiO,000),  which  came 
mostly  from  Gernmny,  pig  iron  ($ii7<»,()00),  plate  and  sheet  ($4r)(),()(M)), 
pipes  and  tubes  ($L>4L»,000),  wire  ($42,000),  galvanized  sheets  ($78,000), 
and  a  little  telegrapli  a?id  steel  wire. 

The  woolen  imports  consisted  of  raw  wool  from  Australia,  yarns  from 
(jlermany,  cloths  from  (Jermany  and  England,  flannels  from  (iermany, 
and  blankets  from  Great  Britain. 

It  has  often  been  said  by  facetious  travelers  that  the  only  exports 
from  the  United  States  to  .Japan  are  kerosene  oil  and  missionaries.  As 
a  matter  of  fact  the  former  article  furnishes  the  largest  item  in  our  com- 
merce, averaging  30,000,000  gallons,  valued  at  $2,030,000,  while  Russia 
sent  0,500,000  gallons,  valued  at  $520,000. 

The  drugs  and  medicines  used  in  Jap.an  come  mostly  from  Great 
Britain,  tlie  dyes  from  Germany,  and  the  perfumeries  and  cosmetics 
irom  France.  We  furnish  a  good  deal  of  leather,  but  most  of  the  hides 
come  from  India  and  Korea. 

A  good  deal  of  condensed  milk  is  shipped  into  Japan  from  the  United 
States  and  Switzerland,  as  they  have  very  few  cows  there.  The  butter 
comes  from  the  United  States,  Holland,  and  Denmark  in  tins.  The 
grass  of  the  country  is  not  suitable  lor  dairy  food.  Alfalfa  has  been 
successfully  grown,  but  you  see  very  little  of  it.  Americans  who  keep 
cows  import  hay  from  the  United  States.  Other  ])rovisions  come  from 
Great  Britain  and  the  United  States  in  the  form  of  preserved  tish, 
fruits,  meats,  and  vegetables. 

Very  little  wine  and  liquor  is  imported  into  .Japan,  and  that  is  used 
almost  exclusively  by  foreigners.  There  are  several  breweries  and  dis- 
tilleries in  the  country  and  some  wine  is  made,  but  the  national  drink 
is  sake — a  brandy  made  from  rice — which  is  used  extensively  by  all 
classes,  but  you  see  very  little  intoxication. 

The  annual  returns  of  the  foreign  trade  of  .Japan  for  1804  show  a 
list  of  196  articles  imported  from  the  United  States,  204  from  France, 
279  from  Germany,  and  335  from  Great  Britain. 

GREAT  VARIETY  OF  IMPORTS. 

The  list  of  the  United  States  contains  nearly  everything  that  can 
come  under  the  head  of  general  merchandise  from  lead  peniiils  to  loco- 
motives, but,  as  I  have  said,  the  chief  value  is  in  petroleum.  The 
exports  from  Germany,  Frjince,  and  England  are  nearly  all  manufac- 
tured goods,  and  consist  of  articles  that  might  be  furnished  by  the 
United  States  at  equally  low  prices.  Aside  from  machinery,  the  largest 
])art  of  the  imports  of  Japan  are  raw  materials  for  their  own  factories 
to  work  over  into  articles  of  merchandise,  many  of  which  are  sent 
abroad. 

A  result  of  the  remarkable  ujitional  spirit  that  was  aroused  in  .Japan 
by  the  Late  war  is  a  determination  on  the  part  of  the  native  merchants 
to  control  both  the  import  and  export  trails.  The  foreign  commerce  of 
Japan  has  alwuys  been  conducted  very  largely  by  foreign  commission 
houses  in  the  treaty  ports,  which  have  stood  as  middlemen  between  the 


116 


RECIPROCITY    STATEMENTS. 


])ro(luccr,  the  nianiifacturer,  and  the  merchant  of  Japan,  and  those  in 
foreign  countries  wlio  liavo  bou^^ht  from  or  sold  j^oods  to  liim;  but  now 
tlie  natives  are  deteiuiined  to  abolisli  this  system  and  tra<le  direct. 
This  movement  is  not  so  much  to  avoid  the  commissions  char^^ed  by  tlio 
middlemen  as  to  gratify  the  national  pride.  The  following  tables,  from 
oflicial  souriics,  show  the  comparative  volume  of  trade  handled  by  the 
foreign  and  the  native  merchants  during  the  last  eleven  years: 

ExporU  and  imports  through  Japanese  and  foreigner $, 
EXPORTS. 


Tear. 


1885 
1880 
1887 
1888 
1889 
1890 
1891 
1892 
lH9:t 
1894 
1895 


Japanese. 


Fen. 

2,  .•JOH,  743 

B,7i;),201 

6,  U>:,.  430 

7,142,916 

6,  900,  775 

6,  207,  489 

8,  839,  025 

11,  471,(KI9 

14.  •162,  029 

20,  348,  535 

20,328,816 


Foreigners. 


Ym. 
31,  390, 019 
41,  628, 570 
43,  !t'.)6, 1187 
66,  590,  289 
61,641,543 
48,  707, 030 
69, 144,  863 
77,  943,  024 
74,08!),  809 
92,  897,  551 
107, 188, 169 


mPORTS. 


1885 

1880 
1887 
1888 
1881) 
1890 
1801 
1892 
1893 
1894 
189S 


Yen. 

2,344,988 
2,  5t)(),  150 
5,  030,  231 

8,  693,  755 

9,  778,  014 
19,  029, 759 
14,  324,  841 
13,  932,  769 
16,  801,606 
34,  324, 804 
38, 329, 338 


Yen. 

25, 724, 772 
28, 332. 800 
37,  305,  703 
53,  820,  247 
64,  349,  248 
61,033,111) 
47,  692,  803 
66,  203,  748 
70,908,139 
83, 157, 151 
90, 431, 240 


This  shows  a  steady  increase  in  the  articiles  exported  and  imported 
through  Japanese  firms,  the  exports  having  increased  more  than  twelve 
times  and  the  im])oits  more  than  eighteen  times  duriiig  the  period  cov- 
ered. But  it  was  only  a  natural  increase  accomj)anying  the  general 
expansion  of  trade,  that  wh>,h  passed  through  the  hands  of  foreign 
firms  having  increased  ui  the  same  jiroportion.  The  lact  that  Japan's 
foreign  trade  is  in  the  hjuids  of  foreigners  remains  unchanged. 


THE  TOXYO   CHAMBER  OF  COMIVIEECB 

recently  memorialized  Parliament  on  this  subject,  asking  the  assistance 
of  the  Government  in  seiuiring  the  control  ol"  foreign  trade.  They  even 
went  so  far  as  to  dvMiiand  the  establishment  of  native  steamshij)  hues, 
in  order  that  they  might  not  be  dependent  ui)on  foreigners  for  transpor- 
tation facilities ;  and  the  native  merchants  and  manutacturers  have  just 
organized  what  is  known  as  the  "  Foreign  Trade  Association,"  whose 
object  may  be  inferred  from  the  following  list  of  committees: 

1.  To  report  facts  im])ortant  to  exporters. 

2.  To  secnire  increased  facilities. 

3.  To  prevent  the  expoi  tation  of  spurious  products. 

4.  To  secure  Government  encouragement  for  the  export  trade. 
6.  For  the  education  of  able  men  for  the  export  trade. 


RECIPROCITY   BTATKMENTS. 


117 


6.  To  encourage  iiitiiimcy  between  produoers  and  exporters. 

7.  To  encourage  the  dcveloitineiit  of  indjistries  for  export. 

8.  To  examiue  the  commercial  conditions  and  requirements  of  foreign 
markets. 

DEVELOPMENT   OF   TUE   COTTON   INDUSTRY   IN  JAPAN  AND  INDIA. 


As  has  been  stated,  the  most  extraordinary  development  of  Japanese 
industry  is  in  cotton  spinning  and  weaving.  The  lirst  factory  was  set  uj) 
in  1HG3  by  one  of  the  dainiyos.  The  next  was  built  in  18(57,  with  7r)0 
8])indle8,  but  now  operates  81*, 000,  and  is  the  largest  in  the  Empire. 
The  industry  has  grown  so  rapidly  that  there  are  now  01  factories  in 
o])eration,  with  r)80,.'}G4  spindles,  employing  8,890  men  and  29,590  women. 
The  factories  in  course  of  construction  will  bring  the  total  number  of 
spindles  to  820,000. 

It  may  be  said  in  this  connection  that  the  develo])ment  of  the  cotton 
industry  in  India  has  been  quite  as  great  as  that  of  Japan,  and  is  now 
many  times  huger.  The  first  cotton  mill  was  started  in  India  in  1851, 
and  now  there  are  144,  containing  34,140  looms,  3,712,292  spindles  con- 
suming 1,375,000  bales  of  400  pounds  each,  and  giving  emi)loyment  to 
139,478  persons,  of  whom  87,293  are  men,  20,570  women,  15,036  young 
persons,  and  9,579  children. 

There  are  100  mills  in  the  Bombay  presidency  alone.  In  Bengal  there 
are  8  mills,  all  in  t  he  vicinity  of  Calcutta ;  in  M adras,  11 ;  4  at  Cawnpore, 
2  at  Delhi,  1  at  Indoe,  3  in  Hyderabad,  1  in  liarcr,  2  in  Mysore,  3  in 
the  French  settlement  of  Poiulichery,  and  1  in  Travancor. 

Five  of  7  new  mills  which  commenced  work  in  1895  are  in  the 
Bombay  presidency,  which  possesses  09  per  cent  of  the  whole  number 
of  mills  in  India,  71  per  cent  of  the  spindles,  and  79  per  cent  of  the 
looms. 

The  nominal  capital  of  the  mills  so  far  reported  is  about  $61,000,000, 
but  it  is  probable  that  the  whole  capital  invested  is  not  far  short  of 
$66,000,000. 

THE   COTTON  MILLS   OF  INDIA. 

The  following  table  shows  the  number  of  mills,  looms,  spindles,  and 
persons  employed  in  the  cotton  mills  of  India  each  year  since  1879 : 


YOI':'. 

Mills. 

LoomB. 

Spindles. 

Pergons 
emplo;'ed. 

1879 

S8 

58 

58 

62 

62 

74 

81 

89 

90 

97 

108 

114 

125 

127 

130 

137 

12, 983 
13,  307 
13,  283 
14, 386 
15, 116 
16,  251 
16,  455 
16,  548 
16,  926 
18,  640 
22,  15C 
22,  078 
23,845 
24, 070 
26,317 
29,392 
34,146 

1, 436, 464 
1, 470, 830 
1,491,730 
1,  550,  044 
1, 654, 108 

1,  895,  284 

2,  037,  055 
2,  198,  545 
2,  202,  602 
2, 375,  739 
2,  «70,  022 
2,  934,  637 
8,197,740 
S.  268.  524 
8, 378,  303 
8,  539,  681 
8,712,988 

(') 

39,  537 

1880 

1881 

47,  955 

1882 

52,  231 

1883 

53,  624 

1884 

61,  836 

1885 

61,  569 

1886 

71,577 

1887 ,. 

72,  590 

1888 

80,515 

1889 

92, 126 

1890 

99,224 

1881 

111,  998 

1882 

117,922 

18S3 

129,  898 

18B4 

130,  570 

IMS 

138, 478 

m 


r-1 


■HorMord. 


^ 


k  if  ^' 
I  5    ^ 

hi 


118 


BECIPEOCITY   STATEMENTS. 


THE  COTTON  INDU-^TRY  IN  CHINA. 

Since  the  close  of  tlie  war  witli  Japan  and  the  treaty  of  peace  the 
cotton-spinning  industry  li.as  commenced  what  promises  to  be  a  very 
rapid  and  extensive  development  in  Oliina.  Until  1890  there  was  bui 
one  mill  in  all  China.  That  was  located  at  Shanghai,  Jind  belonged  to 
Li  Hung  Cha".g  and  other  wealthy  natives,  in  connection  with  several 
prominent  foreigners.  It  was  establislied  in  1880,  bui;  burned  down 
in  1891.  The  sni>erstitions  natives  attributed  its  destruction  to  the 
Fungsliuy,  spirits  of  the  dead  who  exercise  a  powerful  influence  over 
everything  that  occurs  among  the  living.  But  the  factory  was  rebuilt, 
and  has  since  been  in  operation  with  great  protit,  although  technically 
in  violation  of  the  'aws  of  the  Ein])ire.  The  treaty  with  Japan  at  the 
close  of  the  war  permitted  the  establishment  of  manufactories  by  foreign- 
ers in  various  parts  of  the  country,  and  this  privilege  was  immediately 
accepted  by  foreign  capitalists,  who  organized  four  companies  for  the 
purpose  of  erecting  mills  at  Shanghai,  one  at  Nankin,  and  two  at  Han- 
kow. Others  were  pro;)osed  at  Oanrou  and  other  cities  of  the  Empire. 
Several  of  these  compai.ies  have  raised  their  capital,  purciiased  their 
machinery,  and  are  erec  ting  buildings;  only  one,  however,  is  American. 
The  rest  are  British.  There  seems  a  tendency  among  the  jVianchester 
manufacturers  to  remove  their  mills  to  China,  v-^here  they  can  take 
advantage  of  the  cheap  labor  and  the  local  market. 

THE  GROWTH  OF  POPULATION  IN  JAPAN. 

Although  population  does  not  always  represent  wealth  in  a  country 
like  Japan,  where  industrj^  and  economy  are  exceptional,  it  is  the  most 
important  ftictor  in  the  i)i'oduction  of  wealth.  The  increase  in  popula- 
tion there  has  been  more  tlian  27  per  cent  in  twenty-rtve  years,  abnost 
entirely  from  natural  causes.  Innr.igration  from  foreign  countries  is  not 
encouraged.  In  fact,  it  is  restricted  to  a  greater  degree  than  in  any 
other  country  excei)t  Ohina.  Foreigners  are  not  allowed  to  engage  in 
business  or  other  occupations,  or  even  reside  except  in  certain  limited 
sections  of  five  cities,  and  the  total  foreign  population  in  the  entire 
Empire  is  less  than  10,()(M).  It  is  ])rol)al)Ie  that  the  emigration  of  natives 
Las  been  greater  than  the  immigration  of  foreigners  during  the  period 
named. 

The  following  statement  shows  the  increase  of  the  population  of 

Japan  since  the  first  census: 

1872 33,110,825 

1880 3r),{>2y,023 

]8a5 3!),  0()!»,  ()i»l 

1890 40,718,(577 

1895 42,187,313 

During  the  same  ])eriod  the  ])opuIation  of  Great  Britain  increased 
about  20  ])er  >)ent,  tlnit  of  Fratiee  (>  per  cent,  that  of  Gennany  9  per 
cent,  and  that  of  the  United  States  2 1.8  per  cent. 

The  growth  of  agricultural  product.-  has  been  (^hietly  in  rice,  silk,  and 
tea.  Tlie  increase  in  rice  has  been  58  per  cent  during  the  last  fifteen 
years,  the  increase  in  tea  210.3  per  cent,  aiul  in  silk  300.2  per  cent. 

DEVELOPMENT   OF  MANUFACTITRINa  IN  JAPAN. 

But  the  most  lenmrkable  development  has  been  in  the  manufacturing 
industries.  There  were  no  factories  in  Japan  until  the  revolution  (and 
restoration  of  the  Mikado)  in  18G8.    All  sorts  of  industry  was  carried 


RECIPROCITY    STATEMENTS. 


119 


on  by  individuals  in  the  liouseholds  by  primitive  processes.  In  1870 
there  were  44  small  manufacturing  establishments,  in  which  the  labor 
of  a  few  i;eoplo  was  assembled,  and  assisted  by  niotlern  machinery.  In 
ISOo  there  were  more  than  (5,000  manufacturing  establishments  in  opera- 
tion, employing  over  04,000  hands,  and  three  fourths  of  them  were  run 
by  steam  power,  the  remainder  by  water  and  electricily.  Iron  being 
one  of  the  principal  materials  for  manufacturing,  the  following  will  give 
an  idea  of  the  increase  in  that  line,  as  nearly  all  the  pi<?  iron  has  to  be 
imported: 


Year. 

Yen. 

Per  cent 

of 
increase. 

Tear. 

Ten. 

10.890,868 
20,317,1114 
01,081,410 

Per  cent 

of 
increase. 

1872 

.50,  781 
1,100,009 
8,  828,  834 
0,772,005 

1887 

11.6 

1H70 

2»178. 3 

795. 3 

10.7 

181)1 

86.5 

1X80 

18U4... 

200.5 

1884    

The  quantity  imported  thus  increased  by  12,0L*3.9  per  cent  during 
twenty-three  years. 

THE   MERCHANT   MARINE. 

The  development  of  the  merchant  marine  of  Japan  has  kept  pace 
with  that  of  otlier  industries.  The  following  table  shows  the  number 
and  tonnage  of  the  steamships  owTied  in  Japan  during  the  last  tburteeu 
years: 


Tear. 

Ilumber 

of  Hleum- 

ships. 

Tonnage. 

23, 364 
40,  248 
41,215 
45,  3!>0 
81,  006 

Year. 

Number 

of  Htoani- 

ships. 

Tonnage. 

1872 

90 
159 
210 
390 
524 

1801 

607 
080 
401 
517 

05, 688 
110, 20,'5 
163,  996 
321  622 

1K70 

1893    

1,S,S(» 

1894    

IKS) 

1895 

1888 

The  rate  of  increase  during  tweniy-four  years  has  been  538.5  per  cent 
iu  the  number  and  1,370.1  per  cent  in  the  tonnage  of  steamships. 

INCREASE  OF  RAILWAYS. 

Kiiilways  have  also  developed  rapidly,  as  shown  in  the  following 
table: 


iU 


Year. 

Mileage 

oprn  for 

traJHc. 

.      Year. 

Mileage 

oiirn  utt 

iralUc. 

1K72 

18 

64 

98 

'J40  , 

1887 

503 

1  S7r.  

1891 

1  712 

lam 

1894 

2  091 

1884 

1895 

2,  220 

The  rat«'  of  increase  was  12.333.3  per  cent  in  twenty  ibnr  years  and 
375.5  per  cent  in  the  last  nine  years.  Tliere  being  now  a  railw.vy  mania, 
not  many  years  will  eliii)se  lu^fore  the  country  is  covered  irom  end  to 
end  with  a  network  of  iron  roads. 


dm 

1   ■. 

'I 


120 


RECIPROCITY   STATICMENTS. 


JAPANESE  POSTAL  STATISTICS  ANi)   TELEGRAPH  SERVICE. 

The  following  table  shews  the  increase  of  postal  matter: 


Year. 

Letters,  etc. 

Parcels 

Tear. 

Letters,  etc. 

Parcels. 

1872 

2,510.050 

36, 10(i,8(ifl 

74,  5'.i:i,  182 

107,  91)2,  U29 

1S88       

]64,594,0&0 
249, 199, 154 
370, 314, 072 

1870 

1K<J1 

1880 

1894 

1, 808, 707 

1883 

An  increase  of  14,753.5  per  cent  dnring  twenty-three  years  is  not  a 
bad  record. 
Tlie  following  figures  relate  to  the  telegraphic  service: 


Year. 


1872 
1870 
1880 
1883 
1888 
1801 
1804 


Number 

Miles  of 

of  ollices. 
29 

wires.ctc. 

34 

100 

2,214 

195 

4,484 

312 

5, 916 

250 

7,  581 

435 

9,113 

719 

11,178 

Mciiaagos. 


80, 039 
6:!1,8::5 
2,  l'_>.s,20l 
2,418.301 
2,88.j.  513 
4,  074,  341 
7, 852,  738 


Thus,  during  twenty-three  years,  the  rate  of  increase  was  2,479.3 
per  cent  in  the  number  of  ollices,  32,9l)U  per  cent  in  tlie  length  of  wires, 
and  0,7.']S  i)er  cent  in  the  number  of  messages  transmitted. 

The  telei)hi)ne  service  was  but  lately  introduced  and  is  still  in  a  state 
of  infancy,  yet  statistics  show  that  it  is  coming  into  more  and  more 
extended  nse. 


Tear. 

Number  of 

regiHtered 

usi'r.s  of 

toU'pliiinpS. 

Miles  of 
wire. 

1890 

225 
2,748 

258 

1894 

1,831 

COST   OF  LABOR  IN  JAPAN. 

With  the  growth  of  industries  the  cost  of  labor  has  gradually  risen. 
By  way  of  illustration,  the  following  statistics  show  the  wages  of  female 
hands  employ eil  in  cotton  mills: 


Tear. 


1869 
1890 
1801 
1893 


Averii^ie 
WHCi'H  iier 

(Ul'Ul, 


Sen. 


8.1 
8.2 
8.8 

8.9 


Knte  of 
incifiise. 


Per  cent. 


1.3 
8.4 

1.2 


Year. 


1893 
1894 
1896 


Avcr.ige 

WBirt'H  per 

(lidui. 


Sen. 


9.4 
10.2 
10.9 


Kate  of 

iucrtase. 


Per  cent. 
6.6 
8.8 
•.T 


A  Ren  is  equal  to  one -half  of  1  cent. 
The  rate  of  incicase  in  seven  years  has  been  37  per  cent. 
For  the  BuUeti.i  of  the  Department  of  Labor,  No.  2,  for  January,  1896, 
I  JTarnished  a  statement  in  detail  concerning  the  industrial  revolution 


RECIPROCITY    STATEMj'^NTS. 


121 


that  is  uow  going  on  in  Japan,  which  should  be  read  in  this  connection 
for  a  better  understanding  of  the  commercial  situation  in  that  country. 
A  very  iuteresting  series  of  rei)orts  on  the  industrial  and  commercial 
condition  of  Japan  appear  in  the  Consular  Reports  for  May,  18'J6. 


>f 

il     Miles  of 

wire. 

8. 

5               258 

8            1,831 

APPREHENSION  OF  FINANCIAL  TROUBLE  IN  JAPAN. 

There  is  a  serious  apprehension  among  thoughtful  men  lest  Ja]ian  is 
making  too  rapid  progress.  That  ])rccociou8  child  of  modern  civiliza- 
tion has  developed  at  such  an  extraordinary  pace  that  much  of  its  cul- 
ture is  veneer.  Its  education  is  superiicnal,  and  the  legislation  enacted 
by  a  Parliament  that  has  been  in  existence  but  five  years  has  been  so 
abundant,  so  ambiguous,  and  so  contradictory  that  it  has  been  found 
necessary  to  appoint  commissions  of  learned  and  conservative  men  to 
revise  and  codify  the  statutes  of  the  Empire  in  order  that  they  may  be 
understood  and  eutbrced.  The  industrial  revolution  has  been  so  rapid 
and  radical;  the  expenditures  for  pul)1ic  and  private  improvements 
have  been  so  great;  the  fever  of  specuL  tion  has  run  up  so  high,  that 
the  capital  of  the  country  is  not  suilicient  for  the  transaction  of  busi- 
ness, and  a  reaction  must  sooner  or  later  occur,  which  may  cause  a 
linaucial  panic  and  retard  development  until  commercial  and  industrial 
aflairs  can  adjust  themselves  to  their  normal  conditions. 

There  have  been  grave  omens  of  such  disaster  during  the  last  few 
months.  The  excessive  production  of  raw  silk,  which  has  been  the 
most  profitable  crop  of  the  country,  has  already  outstripped  the  demand, 
and  recent  advices  have  been  received  of  3(),()00  bales  thrown  back 
upou  the  commission  men  lor  which  there  is  no  market.  The  banks 
have  refused  to  make  new  advances  upon  silk,  or  to  renew  old  loans  with- 
out additional  security,  which  the  merchants  have  been  unable  to  fur- 
nish; and  the  latter  have  appealed  to  the  (iovernment  to  advance 
10,()(>0,0U0  yen,  which  is  equivalent  to  $5,()0(),0()(),  to  carry  them  over  the 
emergency,  which  was  refused,  and  now  the  owners  of  the  silk,  who  are 
carrying  it  upon  margins,  have  been  comi)ellcd  to  sell  at  a  decided  loss 
in  order  to  pay  storage  and  interest  charges.  Thus  the  i)rice  has  been 
forced  down  from  30  to  35  per  cent  less  than  that  which  ruled  at  this 
time  last  year. 

Another  and  more  significant  indication  of  the  serious  condition  of 
atValT-s  wa;  flie  failure  of  a  recent  GovornnuMit  loan.  Japan  has  never 
been  compi^lled  to  borrow  money  abroad.  She  has  no  foreign  debt. 
That  the  Government  was  able  to  arm  and  eciuip  an  army  of  3()(),()()0 
men  and  a  fleet  of  70  vessels  and  carry  on  «,  ,var  ui)on  foreign  terriUtry 
for  more  than  two  years  in  Korea,  China,  and  Formosa,  n'ithoiit  the 
aid  of  foreign  cai)ital,  without  the  slightest  depreciation  of  the  national 
curivncy,  and  without  any  interruption  of  its  commerce  or  industry, 
which,  actually  increased  during  the  time,  demonstrates  the  extraordi- 
nary resources  and  reserve  power  of  the  country.  And  in  February, 
1<S!)0,  a  loan  of  $10,000,000  at  4  percent  was  oversubsciibed  at  par. 
But  in  April  following,  when  another  loan  of  the  saiiui  amount  under 
similar  conditions  was  ottered,  but  $2,000,000  was  taken  by  local  in- 
vestors, and  Government  securities  for  the  first  time  were  quoted  below 
par.  The  National  ^tank,  with  a  patriotism  which  is  characteristic  of 
Japan,  accepted  the  balance  of  the  bonds,  and  was  authorized  to  issue 
currency  upon  them. 

There  can  never  be  so  serious  a  panic  in  Japan  as  occurred  in  the 
United  States  in  1873,  or  in  the  Argentine  Kepublic  twenty  years  later, 
when  thj  phenomenal  advancement  of  that  country  collapsed  with  the 


122 


RECIPROCITY    STATEMENTS. 


Baring  failure.  The  peculiar  conditions  will  not  permit  it;  but  it  may 
be  expect'^d  that  the  remarkable  development  of  the  last  five  years  will 
soon  hesitate  because  of  a  lack  of  capital  unless  the  laws  that  now  pro- 
hibit investment  of  foreign  capital  are  relaxed. 

The  great  danger  in  Japan  comes  from  the  same  causes,  however,  from 
which  the  financial  panics  in  both  the  United  States  and  the  Argentine 
Kei)ublic  originated — excessive  speculation,  the  inflation  of  the  ])ai)er 
currency,  and  the  withdrawal  of  specie  from  circulation.  Indeed,  so 
excessive  has  been  the  si)irit  of  enterprise  that  new  companies  have 
been  incorporated  and  existing  comi)sinies  have  liad  their  cajiital  in- 
creased by  the  sum  of  $51)1,81 0,7r<>  during  the  I  st  fifteen  moutlis,  and 
supposing  that  these  com])anies  should  call  in  only  one-third  of  their 
subscriptions  Japan  would  be  greatly  crippled  for  money  to  transact  its 
business.  Another  reason  for  apprehension  is  that  the  Japanese  peo- 
ple are  still  amateurs  in  all  lines  of  commerce  and  industry,  and  possess 
a  confidence  in  their  own  ability  which  is  not  justified  by  experience. 


-1 


u 


:^ 


THE  TARIFF  OF  JAPAN. 

Under  a  system  of  weaties  which  wore  exacted  from  Japan  by  the 
civilized  nations  when  its  ports  were  forcibly  opened  to  commerce,  duties 
upon  all  forms  of  imported  merchandise  are  limited  to  5  per  cent  ad 
valorem,  and  have  prevailed  for  more  than  a  quarter  of  a  century, 
although  Japan  has  continually  comi)lained  of  the  injustice.  The  Gov- 
ernment has  for  yejirs  contended  for  the  right  to  regulate  her  own  reve- 
nues, fix  her  own  tariffs",  and  manage  her  own  custom-houses  and  ports; 
and  the  United  States  has  repeatedly  expressed  its  willingness  to  con- 
cede those  rights,  but  (ireat  liritain  has  stubbornly  decliv.ed  until  last 
year,  when  new  treaties  were  negotiated  with  our  (iovernment  and  with 
France,  Great  Britain,  Germany,  Kussia,  and  other  countries,  in  which 
important  c<Micessions  were  made. 

These  treaties  .are  nearly  uniform,  and  recognize  Japan  as  a  fully 
civilized  nation.  On  and  after  the  17th  day  oi'  July,  18tK»,  Japan  may 
regulate  her  own  taritt"  and  exercise  jurisdiction  over  all  persons  resid- 
ing within  her  territory.  She  agrees  that  all  her  ports  and  cities  and 
towns  shall  be  open  to  foreign  commerce,  and  that  foreigners  may  come 
and  go  and  enjoy  the  same  treavnient  as  citizens  of  Japan  so  long  as 
they  obey  the  laws  and  regulations  of  the  country. 

It  will  be  difficult,  however,  for  the  United  States  to  negotiate  a 
recijirocity  treaty  with  Japan,  for  the  reason  that  the  favored-nation 
clause  appears  with  unusual  breadth  in  all  the  treaties.  In  terms 
Japan  agrees  to  impose  no  other  or  higher  duties  upon  the  san^e  articles 
imported  from  any  of  the  most-favored  i. actions. 

THE  THREATENED  INVASION. 

A  great  deal  has  been  ])rinted  in  the  public  i)r< '^s  about  the  d.anger 
of  an  invasion  of  the  markets  of  the  United  Stat«^s  by  the  Japanese 
which  threatens  disaster  to  our  domestic  industric^s,  and  mat(^hes,  but- 
tons, and  bicycles  have  been  mentioned  as  some  of  the  articles  in  which 
their  comi>etition  will  be  ruinous.  The  manufacture  of  nnitches  in 
Japan  is  very  extensive  and  is  increasing  rapidly.  They  are  mostly  of 
the  Swedish  kind,  wh'ch  will  ignite  only  upon  their  own  boxes,  and  are 
sold  for  almost  incredible  prices — a  dozen  boxes  for  1  cent.  But  they 
are  made  of  very  soft  wood,  and  the  chemical  preparations  are  so  imper- 


RECIPROCITY   STATEMENTS. 


123 


feet  tliat  both  materials  ami  nietbods  will  have  to  be  improved  before 
there  will  be  any  market  f  )r  Japanese  matches  in  the  United  States. 
1  have  seen  a  man  <lestroy  an  entire  box  of  matclies  without  lighting 
one,  and  so  uncertain  and  imperfect  are  tliey  that  any  importer  who 
brings  them  into  the  United  States  would  destroy  his  reputation. 

It  is  also  true  that  bicycles  are  sold  in  Japan  for  $25  in  silver,  which 
i»equivalent  to  about  $13  in  gold,  but  the  same  kind  of  a  bicycle  might 
be  made  and  sold  for  that  price  in  this  country.  It  is  a  cheap  att'air,  with 
;i  light  frame  iind  poorly  nia'ie,  which  will  answer  very  well  for  use  in 
tliat  country,  where  the  roads  are  smooth  an<l  the  peojjle  are  of  snmll 
stature,  but  it  would  be  found  very  ])()or  economy  for  any  person  to 
import  them  into  the  United  States,  even  at  the  price  named.  One 
invoice  might  be  disposed  of  as  novelties,  but  there  would  be  no  future 
dennind. 

Up  to  the  close  of  1895  there  was  only  one  bicycle  factory  in  Japan. 
That  was  located  at  Yol -^I'-ma,  employed  onlj'  three  or  four  men,  and 
tui  lied  out  five  or  six  l)ic>„  ^.^  a  week.  They  were  all  made  of  impcuted 
Mjutcrial  upon  stolen  patents.  The  only  advantage  the  mannfa^jturer 
of  these  machines  has  over  the  bicycle  manufacturers  of  this  country 
is  clieaj)  labor  and  his  ability  to  carry  on  business  at  a  ])rolit  that  would 
not  be  accepted  by  any  manufacturer  in  the  United  States.  He  pays 
liis  workmen  20  cents  a  day,  and  if  he  «'an  get  a  i)roflt  of  $1  a  day  out 
of  liis  whole  establishment  he  is  perfectly  satisfied. 


THE  NATURAL  MARKETS  OF  JAPAN. 

There  will  be  no  invasion  of  the  United  States  by  the  products  of 
chcii)'-  .iapanese  labor  during  the  present  generation.  Theie  is  no  (jues- 
tion  that  Japan  is  destined  to  be  one  of  the  great  workshops  of  the 
world,  but  her  nninufactured  products  are  not  suitable  for  the  refined 
tiiste  of  the  American  people,  and  aside  from  he;  silkh:  and  the  result 
of  her  art  industries  she  can  oiler  theni  very  little  chat  they  want.  She 
will,  however,  sooner  or  later  deprive  our  cotton  mills  of  the  markets 
they  have  been  enjoying  in  Asia,  (irejit  Britain,  (Jennany,  and  the 
other  continental  countries  of  ICurope  will  suffer  more  severely  than  we. 
China,  Korea,  India,  Australia,  an(l  tiie  lOast  Indies  will  absorb  all  the 
nunchandise  that  Japan  can  nmnnfactnre  for  the  next  (|uarlerof  a  cen- 
tury and  furnish  her  natural  nmrket.  We  will  continue  to  take  her 
raw  and  manufactured  silk  goods  and  her  tea,  and  if  our  manufacturers 
will  enter  iiUo  the  trade  with  zeal  and  enterprise  they  may  be  able  to 
fnrnisli  a  vast  amount  of  the  raw  materials  which  she  will  need. 

It  would  be  a  great  advantage  to  the  fanners  and  the  millers  of  the 
United  States  if  the  wheat-tlour  habit  could  be  introduced  into  China, 
Japan,  and  other  countiies  of  the  East.  While  flour  is  our  largest  item 
of  export  at  present,  with  the  ex(H'])tion  of  kerosene  oil,  it  is  use<l  only 
by  foreigners.  The  natives  stick  to  rice.  The  eximrts  ol'  tlour  to  ( 'hina, 
including  the  British  colony  of  Hongkong,  average  about  <!0(),<KK)  bar- 
rels a  year,  valued  at  $2,000,000.  The  exports  to  Japan  are  about 
75,000  barrels,  valued  at  $200,000. 


NUMBER  OP  FOREIGNERS  IN  CHINA. 


Aeeordingto  the  latest  reportsof  the  customs  service  of  China,  which 
is  under  the  uoutrol  of  foreigners,  aud  is  usually  accurate,  there  are  10,001 


124 


UECIPROCITY    STATEMENTS. 


:    f: 


foreign  residents  witliin  the  Empire,  and  603  foreign  firms  doing  business 
there.    The  following  is  the  division  according  to  nationality: 


Firms. 

Residents. 

Firms. 

KesidentB. 

British 

3C1 
31 
31 
92 

4,081 

1,325 

875 

812 

0 
34 
45 

605 

United  Stiitoa 

J  ill  >MlH'He. ........... ...... 

609 

l*^reiicii 

MiHcellaucouB  ............ 

1, 521 

German 

The  cosmopolitan  character  of  the  foreign  settlements  in  China  was 
illustiated  last  winter  at  the  city  of  Tien-Tsin,  when  an  amateur  theatrical 
performance  was  given  at  the  club.  In  the  caste  on  that  occasion  were 
2  Americans,  1  Austrian,  1  Dane,  1  Dutchman,  3  Englishmen,  1  Italian, 
1  8])aniard,  2  Germans,  2  Scotchmen,  2  Eussians,  1  Welshman,  and  a 
gentleman  who  was  bom  in  Brazil  of  French  parents. 

But,  as  I  have  said,  only  the  foreign  population  consume  flour.  The 
total  population  of  China  and  Japan  and  Korea  will  exceed  450,000,000, 
who  do  not  eat  it. 

THE  FOREIGN  TRADE  OF  CHINA 

is  increasing  very  rapidly,  although  not  so  rapidly  as  that  of  Japan. 
It  is  now  more  than  double  what  it  Mas  ten  years  ago.  In  1885  the 
total  foreign  trade  of  China  reached  $143,705,395.  In  1895  it  reached 
$314,989,920.  Of  the  total  last  year  Great  Britain,  as  formerly,  had 
the  lion's  share,  something  more  than  $215,000,000.  Japan  came  next 
with  $32,000,000,  and  the  United  States  had  nearly  $25,000,000.  This 
does  not,  however,  induds  our  trade  with  the  British  colony  of  Hong- 
kong, which  amounted  to  nearly  $5,000,000  more. 

The  character  of  the  trade  with  the  IJnited  States  is  very  similar  to 
that  we  carry  on  with  Japan.  Our  imports  from  China  last  year 
amounted  to  $20,505,829,  of  which  $16,958,428  was  admitted  free,  and 
consisted  of  raw  silk  and  tea,  with  a  little  matting,  materials  for  hats 
and  bonnets,  camphor,  and  wool.  Duties  were  imposed  upon  $3,587,401, 
which  was  chiefly  oi)ium,  rice,  manufactured  silk,  furs,  and  sugar. 

Our  exports  to  China  amounted  to  $3,603,840,  which  were  chiefly  cot- 
ton cloth  and  mineral  oil.  The  trade  is  regular,  and  has  not  increased 
or  decreased  to  any  degree  for  several  years. 

William  E.  Curtis. 


RosidentB. 


APPENDIX  D. 


ADULTERATED  FOODS  EXPORTED  TO  THE  UiNITED  STATES. 


125 


Hm 

S  1 

M 

;.f 

'in 

■    !   *| 

-I  * 

m 

:|f 

m 

W  ■! 


■■■■ 


|! 


li 


Wf  : 


li'l  i: 


1 1 


ADULTERATED   FOODS   EXPORTED   TO   THE 

UNTIED  STATES. 


u.  s.  derartment  of  agriculture, 

Office  of  the  Assistant  Si'^cretary, 

M^ashington,  J>.  C,  March  24^  1896. 

Dear  Sir:  Referring  to  my  promise  to  forward  to  you  any  informa- 
tion the  J-)epartment  may  have  with  regard  to  the  adulteration  of  food 
l»roducts  brought  into  this  country  from  foreigu  countries.  I  have  the 
honor  to  send  you  herewith  a  copy  of  a  communication  from  our  Divi- 
sion of  Chemistry  on  the  subject,  which  has  F^tached  a  series  of  refer- 
ences to  foreign  publications  containing  notices  of  food  adulterations, 
preservatives,  etc.  There  is  plenty  of  evidence  in  foreinn  literature  that 
foods  imported  into  this  country  are  liable  to  adulterations,  especially 
wines,  spirits,  etc.,  and  canned  vegetables  and  meats. 
I  have  the  honor  to  be,  very  respectfully, 

Chas.  W.  Daijney,  Jr., 

Assiatant  Secretary. 
Hon.  A.  J.  Hopkins, 

Rouse  of  Representatives,  Washington,  D.  G. 


w 


M 


m 


U.  S.  Department  of  Agriculture, 

Division  of  Chemistry, 
Washington,  February  11,  1806. 

Sir  :  I  have  taken  some  time  to  reply  to  your  letter  of  the  ;Ust  ultimo, 
in  order  to  collect  some  reliable  data. 

I  am  not  informed  in  respect  of  methods  used  by  the  Treasury 
Department  to  prevent  the  importation  of  adulterated  foreign  goods 
into  this  country.  I  believe  a  perfunctory  inspection  of  imi)orted  foods 
and  drinks  is  made  at  some  of  the  ports  of  entry,  e.  g.,  New  York. 
There  is  a  chemical  laboratory  connected  with  the  collector's  oftice  in 
New  York,  which  formerly  was  devoted  almost  exclusively  to  the 
analysis  of  imported  sugars.  I  believe  that  teas  are  also  systenmtically 
examined,  but  I  do  not  know  whether  from  a  chemical  standi)oint  or 
not.  In  so  far  as  [  know,  there  are  no  analyses  nuule  to  determine  the 
purity  of  sausages  and  other  meats  imported  from  Germany,  nor  of  the 
beers  and  wines  from  that  country. 

The  prevalence  of  the  adulteration  of  foods  and  drinks  in  (Jermany 
is  attested  by  the  evidence  of  their  own  eflorts  to  supjjress  it — efforts 
which  uuist  receive  the  commendation  of  all  lovers  of  i)uro  foods.  It 
is  only  when  German  diligence  makes  au  uujust  discrimination  against 

127 


':  t 


128 


RECIPROCITY   STATEMENTS. 


il 


^  llr 


our  own  produclB,  tluit  we  have  a  Just  lif^lit  to  protest.  To  an  unpreju- 
diced observer,  it  often  seems  that  some  petty  fault,  or  the  presence  of 
an  almost  intiiiitesimal  i)orfion  of  deleterious  matter,  is  made  the  basis 
of  a  proscription  which  has  its  real  origin  in  the  clamor  which  is  made 
against  American  conipetition  in  the  sale  of  food  products.  The  exclu- 
sion of  American  ])ork  by  reason  of  its  sui)posed  infection  with  tricthi- 
me,  and  of  American  evai)orate(l  apples  by  reason  of  their  supi)osed 
content  of  zinc,  are  instances  of  the  restrictions  mentioned.  It  will  not 
be  denied  that  American  pork  nuiy  contain  tricliinje,  but  no  oftener 
than  pork  produced  in  other  countries.  Evaporated  api)les  manufac- 
tured in  tins  country  may  also  contain  zinc,  but  a  most  thorough 
investigation  shows  that  it  is  present  in  qnantities  so  minute  as  not  to 
endanger  health  even  in  the  most  exaggerated  cases. 

I  submit  herewith  some  citations  transcribed  from  recognized  Cer- 
maii  authorities,  showing  the  prevaleiu^i  of  objectionable  adulterations 
of  their  own  inoducts  to  an  extent  fully  as  great  as  tiiat  on  which  they 
justify  the  exclusion  of  oui-  products.  In  respect  of  meats  alone,  I  sub- 
mit fifty  instances  of  the  analysis  of  preparations  sold  within  a  short 
time  for  coloring  and  preserving.  Of  these  compounds,  27  were  found 
to  contain  boric  acid. 

I  further  submit  a  list  of  essences  used  in  artificially  flavoring  dis- 
tilled spirits;  in  other  words,  for  making  artificial  whisky  and  brandy. 
These  preparations,  it  is  true,  may  be  used  in  compliance  with  the  Ger- 
man law  by  plainly  stating  on  the  i)ackages  the  nature  of  the  compound. 
But  what  assurance  have  we  that  these  artificial  liqueurs,  wiiiskies,  and 
brandies  are  not  exported  to  this  country? 

In  Strasburg,  in  the  course  of  one  year,  of  710  wines  examined,  132 
were  condemned  as  adulterated.  Yet  this  is  the  center  of  the  Ithine 
wine  niarket,  and  the  percentage  of  adulterated  wines  shipped  to  this 
couiury  may  be  far  greater  than  that  mentioned.  In  the  following  year 
20  per  cent  of  the  samples  of  beer  analyzed  were  found  to  be  adulterated, 
and  127  out  of  Olf*  samples  of  wine.  It  is  further  stated  that  the  absence 
of  any  official  control  of  the  wine  cellars  of  the  Palatinate,  permits  the 
adulteration  of  wine  to  an  almost  unlimited  extent. 

In  view  of  these  facts,  the  President  of  the  United  States,  under  the 
law  now  in  force,  would  be  as  fully  justified  in  forbidding  the  importa- 
tion of  Oerman  wine,  beer,  erausages,  aiul  cured  meats  as  the  German 
authorities  are  now  in  restricting  the  trade  in  our  pork  and  evaporated 
apples.  Only  a  careful  chemical  analysis  of  the  suspected  articles 
could  disclose  with  convincing  certainty  the  exttut  of  adulteration  of 
imported  foods  and  drinks. 

I  am,  respectfully.  H.  W.  Wiley, 

Chief  of  Division. 

Hon.  Ohas.  W.  Dabney, 

Assistant  Secretary  of  Agriculture, 


Suhatancea  used  for  coloring  and  preserving  meats  In  Germany.  .      .,, 

The  use  of  artificial  coloring  matters  and  preservatives  is  quite  common  In  Qei- 
many  iu  tlio  manufacture  of  sausages  and  in  other  forms  of  ])reserved  meats.  It  is 
only  fair  to  presume  that  these  bodies  are  common  in  the  sausages  exported  from 
Germany  to  this  country.  Fifty  instances  of  detection  of  artificial  colors  and  pre- 
servatives in  German  meats,  as  attested  by  the  certificates  of  German  analysts,  have 
been  collected  in  tlie  chemical  division  of  the  Department  of  Agriculture.  A  descrip- 
tion of  these  colors  and  preservatives  iu  strictly  chemical  language  would  be  of 
little  interest  to  th«  general  reader.     We  will  therefore  be  oontent  with  a  few  state- 


i 


RECIPROCITY    STATEMENTS. 


129 


nients  concerning  some  of  them,  holding  ouraelres  ready  at  any  time  to  give  the 
detailed  sclentiflo  citations. 

1.  A  meat  color  and  incHcrvativo  purchat;ed  in  Ilanjhnrg  contained  a  mixture  of 
carmine  and  boric  acid,  the  carinino  Hervinj;  to  jjivo  tiio  red  color  to  the  llcHh  and  the 
boric  acid  acting  as  .i  ijrescrvativo. 

2.  Crystiils  (or  prescrvinj^  moat.  This  is  a  substance  maunfacturod  in  Berlin  and 
rctailiiijj  for  a  little  over  10  cents  a  pound.  It  is  a  mixture  consisting;  of  90  i»er  cent 
of  crystallized  sulfite  of  soda  and  10  per  cent  of  sulfate  of  soda  ((Jlauber  saltH).  This 
mixture  has  no  coloring;  prop(!rtie.s,  but  tiu*  sullite  of  hoda  is  a  slronj;  antiseptic. 

15.  Sample  No.  3  is  a  moat  jucstuvativo  in  a  lluid  state,  which  is  retailed  at  50  cents 
ii  ipiiirt.  It  is  a  mixture  of  glycerin  and  solutions  of  boric  acid  and  sulfite  of  soda. 
As  in  the  case  last  mentioned,  this  substance  has  no  coloring  properties,  but  is  used 
solely  as  a  preservative. 

4.  This  sam]ile  consists  of  a  solid  meat  preservative  which  retails  for  25  cents  a 
jjound.  It  consists  of  a  mixture  of  75  per  cent  sulfate  of  soila  (Glauber  salts)  and 
25  per  cent  of  the  bisulfite  of  soda. 

5.  This  sample  is  also  a  solid  body,  selling  for  40  cents  a  ponn<l.  It  is  directed 
that  2  ounces  bo  used  for  each  10  pounds  of  meat.  It  is  composed  of  43  per  cent  of 
saltpeter,  15  per  cent  each  of  carbonate  of  potash  and  chlorid  of  potash,  and  27  per 
cent  of  sugar.  Saltpeter  is  not  only  a  good  i>resorvativc,  but  it  inteusilies  and 
keeps  the  red  color  of  meat.     The  other  ingredients  noted  act  siinidy  as  incservatives. 

(i.  Tliis  is  a  substance  sold  in  pound  pacliages  and  comiiosed  of  liO  [)er  cent  of  com- 
iiioii  salt  and  70  p(!r  cent  of  boric  acid.  Of  course,  tiiere  is  no  objection  to  tiie  use  of 
common  salt,  as  that  is  a  preserving  agent  which  is  universally  employeil.  It  is  the 
boric  acid  in  this  mixture  which  is  objcctionabhi. 

7.  This  material  is  a  liquid,  which  consists  of  a  solution  of  the  acid  sullite  of  lime 
saturated  with  sulfurous  acid  (fumes  of  burning  Bulfur). 

8.  This  sample  is  a  solid  body,  which  contains  50  per  cent  of  salt,  12  per  cent  of 
saltpeter,  12  per  cent  of  borax  and  borate  of  magnesia,  and  26  per  cent  of  boric  acid. 

1).  This  is  a  solid  body,  which  consists  exclusively  of  borax  (biborate  of  soda). 

10.  This  is  a  solid  mixture,  consisting  of  common  salt,  saltpeter,  sulfate  of  soda, 
and  gypsum,  with  cochineal  as  tiio  coloring  matter. 

11.  This  sample  is  manufactured  by  Theodore  lleydrich  &■  Co.,  of  Wittenburg.  It 
is  called  "the  real  American  meat  preservative,"'  and  consists  of  an  aqueous  solution 
of  commercial  sulfite  of  soda. 

The  above  are  typical  samples  of  the  50  v/1  '<  b  have  heen  collected.  They  sIioav 
that  aniline  and  animal  coloring  matters,  vi?,,  ..  jrmine  and  cochineal,  respectively, 
are  commonly  used  for  coloring  preserved  meats.  Among  the  objectionable  preserv- 
ing reagents  which  are  employed  are  found  sulfurous  acid,  the  sullites  of  soda  and 
lime,  boric  acid  and  the  borates,  saltpeter,  and  glycerin.  Among  the  preservatives 
found  which  are  not  objectionable  may  bo  mentioned  sugar  and  common  salt. 

If  food  products  are  to  be  excluded  from  Germany  on  the  ground  that  they  may 
contain  deleterious  substances,  it  follows  with  equal  reason  that  the  highly  colored 
preserved  sausages  and  other  meats  imported  into  this  country  from  Germany,  and 
which  are  quite  uniformly  colored  and  preserved  with  the  reagents  mentioned  above, 
could  bo  properly  excluded  under  authority  of  our  laws  now  in  force. 


iviston. 


Essences  employed  in  Germany  for  the  manufacture  of  artificial  liqueitra,  spirits,  and 

other  beverages. 

The  use  of  artificial  essences  to  give  particular  flavors  to  mixtures  of  alcohol  and 
sugar  in  the  manufacture  of  artificial  liqueurs,  spirits,  and  other  beverages  is  quite 
common  in  Germany.  We  have  collected  a  large  number  of  citations  giving  the 
analyses  of  these  essences  and  an  account  of  their  detection  in  beverages  of  an  arti- 
ficial nature.  It  would  be  nnnecessary  to  enter  here  into  a  discussion  of  the  processes 
by  which  these  flavoring  matters  are  produced.  It  will  bo  sufficient  to  state  that 
the  iiavor  and  aroma  which  are  produced  in  the  natural  ageing  of  spirituous  liquors 
are  due  chielly  to  the  production  of  aromatic  ethers  and  essential  oils  by  the  oxida- 
tion of  alcohols  contained  in  the  natural  i>roduct.  In  order  to  hasten  this  process, 
or  rather  to  supersede  it,  the  Havering  matters  which  are  produced  in  the  natural 
ageing  are  manufactured  synthetically  by  the  chemist,  and  by  the  use  of  these 
liavoring  matters  with  pure  alcohol,  water,  sugar,  and  sugar  colors  almost  any  nat- 
ural beverage  produced  by  natural  ageing  can  be  imitated.  We  have  citations  of 
the  analysis  and  detection  of  22  of  these  artificial  flavoring  matters  in  beverages 
manufact;ured  in  Germany.  In  accordance  with  the  Gerim.u  laws,  such  prejtarations 
can  be  ma''  here,  provided  the  nature  of  the  article  is  plainly  marked  on  the  pack- 
aga,  but  th.  is  no  method  of  preventing  the  exportation  of  such  artificial  bever- 
ages under  tne  name  and  character  of  the  true  articles.  The  sale  of  such  artificial 
beverages  is  clearly  traffic  in  adulterated  goods.  The  same  objection  may  obtain 
against  the  importation  of  beers,  although  it  can  not  bo  said  that  they  are  iu  any 

H.  Eep.  2203 9 


1:1:^ 


130 


RECIPROCITY    STATEMENTS. 


1 

'1': 

BOHHO  an  artificial  protiuct.  The  didicnlty,  luwovor,  of  traimportiriK  boors  long  diB- 
tancea  without  tlieir  iiiHlor^oing  Hecondary  I'oriiuMitation  lias  led  to  tho  ]»ractii"e  of 
uddiiifj;  to  th(i  bcoror  ale  Homo  untisoptic  suhstanco,  sikIi  a8sali<'\lic  aiid,  wliich  will 
])rc8orvo  tlu^in  a^^ainst  the  accident  nicntioncMl.  It  is  cloiirly  evident,  since  the  addi- 
tion of  tiicrie  antiHejttif  agentH  is  injnrionH  to  lieaMi  when  beveragoH  are  (consumed, 
tliat  a  beer  or  ale  ho  treated  Ih  a<liilterated. 

In  th(!  cane  of  wincn,  far  more  HcriouH  discoveries  have  been  male.  In  a  large 
niiml)erof  examinations,  whiclihave  been  made  by  (ierman  chemistH,  of  commcrc^ial 
wines  it  has  been  fon>'.;l  that  a  large  jxTccntage  of  them  are  adulterfitod.  In  many 
inMtaM<'CH  it  has  been  found  that  thi>  wines  were  purely  artificial.  In  one  instance, 
wliere  'J',i  wint^s  were  condemned  as  iidulterated,  (i  of  them  were  found  to  be  i)nndy 
artificial,  having  been  ma  le  of  aldndiol,  red  coloring  matter,  sugar,  and  extractive 
nniterial.  Of  wines  whi(;)i  have  been  made  l)y  the  fermentation  of  grape  juice  many 
are  found  fortified  I>y  tlie  adiiition  of  alcoliol  from  other  sonrcoH,  and  others  are 
shown  to  have  bt^en  largely  ailulteratod  witli  gyimum.  The  occurrence  of  saliciylic 
acid  and  Hulfiirous  acii,  aH  pr<'Herving  agents  is  very  often  detected. 

It  is  eviihsnt  from  the  evidence  which  has  been  collecteJ,  and  of  which  a  r<5sunii'' 
has  been  given  in  the  prccuuling  jtaragrajdis,  tliat  niucli  of  the  wine  and  beer  and 
other  l)ev(!rages  imported  into  this  country  from  (iermany  is  adulterati'd.  No  argu- 
ment is  needed  to  sliow  that  shippers  will  lie  indiiu'd  to  send  adultorattid  articles  of 
this  kind  out  of  a  country  where  inR])ection  in  respect  to  adulteratiou  is  rigid  into  a 
country  where  they  are  received  witliout  any  inspection  whatever. 

The  evidence  sul)niittcd  is  sTiflicient  to  warrant  a  thorough  investigation  of  the 
character  of  the  beverages  which  are  imported  into  this  country  from  Germany  and 
other  European  nations. 

The  subject,  however,  is  of  such  a  purely  chemical  nature  as  to  render  it  ditQcult 
to  go  into  any  further  details  wi^jhout  the  use  of  technical  language,  which  would 
be  of  little  avail  for  popular  purposes. 

Meat  colors,  preservatives,  etc. 

Rosalind  Fleisch-Culeur;  made  by  C.  H.  Rosa,  Hamburg-Uhlenhorst.  Flask  of 
850  c.c.  fluid;  3  marks.  Contained  25  grams carnnue  lake  and  20  grams  ci'ystallized 
boric  acid.     (FoleuHke,  Arb.  kais.  Gesuudheitsamt,  1892,  8,  253.) 

Meat  Freserve-Krystall:  made  by  E.  Dresel,  Herlin.  Powder  retailing  at  1  mark 
per  kilo.  Consists  of  J)0  per  cent  crystallized  sodium  snliite  and  10  per  cent  sodium 
sulfate.     (Poleuske,  Arb.  kais.  Gesnndlioitsauit,  18112,  8,  252.) 

Lakoliu  (meat  preservative);  8."mo  maker.  Fluid,  2.5  .narks  per  kilo.  Solution 
of  glycerin,  boric  acid,  and  sodium  sulfite.     (Ibid.) 

Antisepticum ;  made  by  C.  II.  Rose,  Hambnrg-Uhleuhorst.  Consists  of  fine  pow- 
dered l)oric  acid.     (Ibid.) 

Phlordaritt,  iieuestes  Fleisch-Preserve-Pulver;  made  by  Magdeburger.  Conscr- 
vesalzfabrik  (Adolph  Dubecke).  Solid  mass  of  75  per  cent  sodium  sulfate,  25  per  cent 
sodium  bisulfite;  in  lOO-gram  jars  (1  mark).  Ten  grams  of  substance  to  bo  used 
for  5  kilos  meat.     (Ibid.) 

Carnat;  made  by  Ij.  Ziffer,  Berlin.  Comes  in  tin  cans  containing  5!)0  grams,  and 
costing  3  marks ;  a  teaspoonful  to  be  usod  for  5  kilos  meat.  White  soluble  powder, 
composed  of  sodium  s'llHte,  sulfate,  and  chlorid,  with  5  per  cent  sugar.  Polenske, 
Arl).  kais.  Gesui-llieits'.Mt,  1892,  8,  252.) 

Monopol ;  u,.-de  b'  Ij.  differ,  Berlin.  Tin  cans  containing  .550  grams  coarse  powder ; 
price,  2  marks;  30  grroas  to  bo  used  on  5  kilos  meat.  Composed  of  43  per  cent  s.alt- 
peter,  15  per  cent  potassium  carbonate,  17  per  cent  potassium  chlorid,  and  20  per 
cent  sugar.     (Il)id.) 

Krhaltungspulver;  made  by  L.  Zitfer,  Berlin.  Tin  cans  containing  390  grams 
white  i)owder,  consisting  of  30  per  cent  salt  and  70  per  cent  crystallized  boric  acid. 
(Ibid.) 

Best  Australian-New  Zcalaiul  Meat  Preserve;  made  by  L.  Ziffer,  Berlin.  Bottles 
containing  900  grams  moist  yellow-white  powder,  consisting  f)f  one-third  salt  and  the 
residue  a  mixture  of  sodium  sulfate  and  bisulfate;  price,  1.4  marks.     (Ibid.) 

Preserv.'iline.  Schntz  f,.'g<'n  Spriugmaden  (maggots).  L.  Ziffer.  Berlin.  Fluid, 
containing  salt  and  sodium  sulfite.  Hams  and  bacon  are  to  be  brushed  with  the 
liquid.  Benzoic  acid  was  also  likely  present.  (Poleuske,  Arb.  kais.  (jesundheitsamt, 
1892,8,  252.) 

I'oisonons  preserved  meat.  Toxic  symptoms  appeared  after  consumption  of 
chopped  meat  wliich  had  been  treated  with  "meat  preserve"  (calcium  aci<l  Hulfite). 
This,  however,  was  most  likely  due  to  ptomaines.  (Mobius,  Ztschr.  Fleisch-  u. 
Milchhygiene,  1892,  3,  (i3.) 

Australian  Salt;  made  by  II.  Reich,  Magdeburg.  Composed  of  30  per  cent  salt, 
25  per  cent  saltjieter,  and  25  per  cent  sugar.  ( Venztke  and  Schorer,  D.  Fleisch-Ztg.j 
1893,  21,  Nos.  20,  21,  and  24.) 


RECIPROCITY    STATEMENTS. 


131 


8  long  (ll8- 
inictice  of 
which  will 
1^  tht)  addi- 
consiiiued, 

In  a  largo 
MtninuTcial 
In  many 
10  instiuu:*', 
I  bo  i»nrol.v 

oxtiiu'tivo 
jnico  many 

othovH  ai<* 
of  salicylic 

jh  a  rdsnmo 
lul  beer  an<l 
.  No  arf^n- 
:l  articles  of 
rigid  into  a 

ation  of  the 
ermany  and 

r  it  ditBcnlt 
vliich  would 


it.    Flask  of 
I  crystallized 

iig  at  1  mark 
cent  sodium 

lo.    Solution 

of  fine  pow- 

|ror.    ConstT- 
o,  25  per  cent 
to  bo  used 

grams,  and 
uble  powder, 
Polenske, 

arse  powder; 
r  cent  salt- 
aud  20  per 

g  390  grams 
id  boric  acid. 

ilin.     Bottles 

il  salt  and  the 

bid.) 

•rlin.     Fluid, 

died  with  the 

iniidheitsamt, 

isumption   of 
acid  sultite). 
Fleisch-  u. 

per  cent  salt, 
Fleisch-Ztg.j 


Meat  preserve.  Solution  of  calcium  acid  sulfite,  containing  fi8  grams  sulfurons 
uciil  i)er  liter.     (Ibid.) 

iJcst  AuHlraiiini  and  New  Zeiiland  Meat  I'reHcrve;  m.idc!  I»y  L.  Ziller,  ISerlin.  21$  per 
cent  h,,'lium  sultite,  'M  sodium  siiUato,  40  salt.     ( Ibid. ) 

Kxcflsior.  I' leiHch-l'.rlialtimgH-Krystall.  IsaJik  (ioldbcrg,  Kassel.  ContiiiiiH  85 
iicr  (MMit  of  crvstaiii/e<l  sodium  sulfite  and  1.5  ])cr  cent  of  Hodium  slll!at(^  (\'cn/,ke 
anil  S(;horer.  '  I).  I-'lcisch-Ztg.,  IHiK!.  21,  Nos.  20,  21,  aiul  21.) 

C'arnat;  made  by  L.  Zifl'cr,  Herliii.  Contains  IK  jKsr  cent  of  salt,  25  of  dried 
soilium  sulfite,  27  of  sodium  sulfi^te,  and  .'")  of  sugar.     (Ibid.) 

i'lciscli-Conserve-Fluidum.  Dr.  E.  Kuhluuinn,  IJorliu.  Solution  of  calcium  bisul- 
fite.    (Ibid.) 

Preservaline.  Seliutz  gegen  Springiiiadcn  (maggots).  L.  Zifier,  l?erlin.  Solution 
(if  salt,  sotliiim  bisulpbito,  and  sodium  sul])liatt«.     (Ibid.) 

Aiistriiliiiu  Salt  11 ;  luade  by  II.  Reich,  Magd-^burg.  Equal  parts  crystallized  borie 
aciil  and  salt.     (Ibid.; 

1.  Starkwirkoiides  Conservesalz;  made  by  Dr.  E.  Kublmann,  Herlin.  E(|ual  parts 
boric  acid  and  salt.     (Ibid.) 

Itarineiut;  made  by  A.  Wassmuth,  Harmen.  E(iual  parts  of  boric  aciu  and  salt. 
(Ibid.) 

The  Heal  Australian  McJit  Preserve;  made  by  Louis  Kahn,  Hamburg.  A(|iioou8 
solution  of  acid  calcium  sulfite.  (Venzke  and  Schorer,  D.  Fleisch-Ztg.,  1H\)'3,  21, 
Nos.  20,  21,  and  21.) 

Kinfiiclies  Conservesalz  (ruthenu'iS  Pokelsalz).  Th.  Heydrlcb  &  Co.  Salt,  62  per 
cent;  baking  soda,  4;  Chile  saltpeter,  31.     (Wittenberg,  Ibid.) 

HrlialtungHsalz.  Dr.  II.  Oiipermann,  Hernburg.  Salt,  50  per  cent;  saltpeter,  12 
]ier  cent;  borax,  11.5  per  cent;  magnesium  borate,  0.5  per  cent;  boric  acid,  26  per 
cent.     (D.  Fb'ischZtg.,  18113,  21,  No.  38.) 

Krlialtungsiiulver.  Dr.  H.  Oppermann,  liernburg.  Salt,  30  per  cent;  borax,  32.6 
per  cent;  nuignesium  borate,  0.1  per  cent;  boric  acid,  37  ]>er  cent.     (Ibid.) 

Zwfcifacbes  Erliiiltungspulver.  Dr.  II.  Oppermann,  Hernburg.  Salt,  15  percent; 
borax,  38.^1  percent;  nuignesium  borate,  1.2  per  cent;  boric  acid,  15  per  cent.     (Ibid.) 

I'atentirtes  Conservesalz.  Hugo  .lannasch,  Mernburg.  Melt  a  pulverulent  mixture 
(if  boric  acid,  potassium  clilorid,  and  Chile  saltpeter,  a  further  (juaiitity  of  potassium 
clilorid  added  to  the  molten  mass,  the  mixture  deccmposed  with  l.lO^ier  centsulfurie 
acid,  stirred,  and  the  iMii.ss  ([uickly  cooled.     (Vjrsschrft.  Chem.  Nahr.,  1891,  9,  282.) 

nreilaches  Conservesiilz;  made  byTh.  lleydiich  &  Co.,  Wittenburg.  Consists  of 
e(|iial  ])arts  boric  acid  and  salt.  (Venzke  and  Schorer,  D.  Fleisch-Ztg.,  1893,  21,  Nos. 
20,21.  and  24.) 

Conservesalz;  made  in  Maiiiibeim.     Salt,  56  per  cent; 
(Iliid.) 

Iloroglycin;  made  by  Ch.  Kothkramer  &  Sohn,  Erfurt. 
crystallized  boric  acid  and  5  per  cent  sugar.     (Ibid.) 

Conservesalz;  juade  by  Ch.  Kothkramer  &,  Sohn,  Erfurt. 
(Ibid.) 

lirlialtungspnlver;  made  by  L.  Zifier,  Berlin.  Thirty  per  cent  salt,  1.5  per  cent 
Sddiiiiii  sulfate,  and  68.5  of  boric;  acid.     (Ibid.) 

Sanitiit  Lake-Krhaltungsllnssigkeit;  made  by  M.  Starke,  Berlin.  Mehl;  made  by 
11.  H 'ich,  Magdeburg.  These  two  are  to  be  used  together.  Both  consist  of  a  mix- 
ture of  borie  acid,  gypsum,  salt,  etc.     (Ibid.) 

Dreifaches  Conservesalz;  made  by  Kobert  Kuhlrott,  Ijeinefelde.  Comi)osed  of 
93.5  ]ier  cent  crystallized  boric  acid,  5  per  cent  saUpeter,  and  1.5  sodium  sulfate  and 
salt.     (Venzke  and  Schorer,  1).     Fleiscli-Ztg.,  WS-i,  21,  Nos.  20,  21.  and  21.) 

Kinfaches  Ct.nservesalz;  made  by  Robert  Kuhlrott,  Leinefelde.  Eiiual  parts  of 
bdiic  acid  and  saltpeter.     (Ibid.) 

Cdiiservesalz;  made  by  L.  Zifier.  licrlin.  One-third  salt  one-third  saltpeter,  one- 
third  boric  acid  (crystallized).     (Hiid.) 

I'iiteiitirtes  Conservesalz;  made  by  Hugo  .lannasch.  Three-fifths  borax,  two-fifths 
salt.     (Ibid.) 

Pokel-Cmiservesalz;  Dr.  E.  Kublmann,  Berlin.  Salt,  66  per  cent;  17  per  cent  borax, 
17  per  cent  saltpeter.     (Ibid.\ 

Dreifaches  Conservesalz;  nfade  by  Couservesalz-Fabrik,  Stuttgart.  Borax, 82  per 
cent;  sodinui  nitrate,  18  percent.     (Ibid.) 

Conservesalz;  Oskar  Guhardt,  l>ei]izig.  Borax,  15  per  cent;  82  per  cent  salt,  0.3 
per  cent,  salicylic  acid,  2.7  per  c(!nt  sodiimi  sulfate  and  gypsum.  (Venzke  and 
Schorer,  1).     Flei,sch-Ztg.,  1893,  21,Nos.21,  20,  and  24.) 

Australian  salt  I.  H.  Reich,  Magdeburg.  One-half  salt,  oue-quarter  borax,  one- 
(luarter  saltjieter.     (Ibid.) 

lOinfacbes  Conservesalz;  made  by  Conservesalz- Fabrik,  Stuttgart.  Salt,  51  per 
cent;  Chile  saltpeter,  42  per  cent,  and  borax,  7  per  cent.     (Ibid.) 


boric;  acid,  44  per  cent. 

Composed  of  95  per  cent 

Same  as  the  Boroglycin. 


;  ■  ,Ji 


',-:., f^m* 


132 


RECIPROCITY    STATEMENTS. 


m^ 


'li 


^m^  If 


Dreifaches  Conservesalz ;  made  by  L.  A.  Neiss,  Frankfurt  on  the  Main.  Pnre  borax. 
(Ibid.) 

Frankfurter  Conaorvesalz  "Gloria,"  L.  A.  NeisH,  Frankfurt.  Ri.lt,  88  per  cent; 
Biiltpoter,  12  per  cent;  Bodiuni  sulfate,  gypsum,  and  cocliineal,  2  per  cent. 

Tlie  Real  American  Meat  rreservo;  made  by  Th.  Heydrich  &  Co.,  Wittenburg. 
Aqueous  solution  of  impure  sodium  sulfite.     (Ibid.) 

Conserveessenz.  From  Stuttgart.  Aqueous  solution  of  acid  calcium  sulfite. 
(Ibid.) 

Keal  Australian  Meat  Preserve.  Two  per  cent  salt;  19  percent  dried  sodium  sulfite; 
79  per  cent  dried  sodiuia  sulfate.  (Vcnzke  and  Scliorer,  D.  Fleisch-Ztg.,  1898,  21, 
Nos.  20,  21.  and  21.) 

Sozolith,  beste  coucentrirte  Fleisch-Prescrve.  Eighty  per  cent  dried  sodium  sul- 
fate; 20  dried  sodium  sulfite.     (Ibid.) 

Concervimngsmittel;  made  by  J.  Henniger's  Nachfolger,  Mannheim.  Raw  sugar. 
(Ibid.) 

Best  Australian  and  New  Zealand  Meat  Preserve.  L.  Ziffer,  Berlin.  Solution  of 
calcium  acid  sulfite.     (Ibid.) 

Doppelt  cone.  Snlfit-Natron  (Natrium-Hisulfit).  L.  ZitTer,  Berlin.  Solution  of 
254  grams  crystallized  sodium  bisullito  and  71  grams  crystallized  solium  sulfate  to  a 
liter.     (Ibid.) 

Meat  Preserve  Krystall.     Uressel,  Berlin.    Composed  of  53  per  cent  sodium  sullite, 

6  of  salt,  and  41  of  sodium  sulfate.     (Idid.) 

Essences  for  the  manufacture  of  liquors. 

Dr.  Ed.  Polenske  publishes  the  results  of  his  examination  and  analysis  of— 

1.  Lndwig  Erkmann's  rhcinsche  ('('gna>>Fssenz,  Al/.en,  bei  Miiinz  a.  Rh. 

2.  Koelling  und  Schmitt's  Cognacesseuz,  fine  Champagne  mit  Bouiiuet,  Zerbst. 

3.  Louis  Maul's  Cogn.'icgruTHlsrofi',  I^erlin. 

4.  Stephen's  Branutweinschierfe,  Schweriu. 

5.  Eduard  Buettner's  liranntweinbnsis,  Leipzig. 

6.  Louis  Maul's  Kornbranntwein-Kssenz,  Berlin. 

7.  Louis  Maul's  Korngrundstoff,  Berlin. 

8.  Delvendahl  and  Kuentzel's  Nordhiruser  Korn-Wurze,  Berlin. 

In  the  succeeding  article  is  also  described  Delvendahl  and  Kuentzel's  coloring  mat- 
ter for  red  wine,  Berlin. 

Of  course  these  preparations  can  be  used  in  compliance  with  the  food  laws  if  tiic 
articles  u)ade  from  them  are  properly  designated.  They  are  evidently  intended  for 
the  preparation  of  artificial  licniora,  but  if  sohl  as  such  not  for  atlulterated  liquor?. 

(Arbeiten  aus  dcm  kaiserlichen  (Jesundheitsamt,  ll^ilO,  BandG,  lioft  2.) 

The  following  list  of  essences  is  a  continuation  of  that  given  above: 
9.  Delvendahl  and  Kuentzel's  Cognac-Kssenz,  Berlin. 

10.  Delvendahl  and  Kuentzel's  Cognac-Fa^on,  Berlin. 

11.  Delvendahl  and  Kuentzel's  Kum-Fa^on,  Berlin. 

12.  Delvendahl  and  Kuentzel's  Arrak-Fa^on,  lierlin. 

13.  Delvendahl  and  Kuentzel's  BlausaMirefrci-Hittermandeloel,  Berlin. 

14.  Delvendahl  and  Kuenrzel's  Englisch  I'1'etl'erminzoel,  Berlin. 

(Arbeiten  aus  dem  kaiserlichen  GesundheitKamt,  1890,  Bandti,  lleft  3,  pp.  518-521.) 
In  a  later  publication  the  same  author  describes  two  more  articles  of  the  same 
nature: 

1.  A.  Kurz's  Nordhacuser-Konibasis,  Wernigerode. 

2.  A.  F.  Koelling's  lloecbst  koncontrirto  Co-rnae-Essonz,  Zerbst. 

f  Arbeiten  aus  dem  kais<;rlichen  Gesundheitsamt,  1893,  Band  9,  Heft  l,pp.  130  138.) 

Dr.  (i.  Lange,  in  .Jahresboricht  des  stacdtisciton  Uutorsuchungsamtes  in  Hanover, 
calls  attention  to  a  number  of  adulterated  lic^uors. 

Beer  und  "  Bierersatzniittel :"  One  8am])le  of  beer  was  turbid;  another  InsufQ- 
cientiy  fermented,  and  a  saiujdo  of  "  Bierersa'.zuiittel"  was  found  to  contain  caramel. 

Sjiirits:  A  sample  of  cognac  was  found  to  be  artificial. 

Wine:  Twenty-three  wine:i  werti  condemnetl.  Of  tlu^se,  fi  modioinal  wines  v. ere 
artificial;  10  were  gallize<l  and  did  not  <'ome  within  the  requirements  of  the  law;  1 
red  wine  (inteTided  for  diabetcH)  contained  sugar,  and  3  I'renih  wines  were  plastered. 

(Rev.  intern,  fals.,  189!^  8,  2;  Vtjhr.  (hem.  Nahv.,  1894.  ,9,  177.) 

Prof.  Dr.  Kaemmerer,  in  Berlidit  uelier  die  'IhaetigUeit  der  staedtisciien  I'nter- 
Bnchuugsanstalt  luer  Kahriings-  und  (iennssmittel  in  Nuernberg  waehrend  des  Jiihros 
1893.  reported  that  out  ef  24  saini)les  of  white  wine  5  were  excessively  gallized  ami 

7  heavily    sulfiired,  and    ;,hat  out  of  10  oam))le8  of  sweet  wine  2  wore  artificial. 
(VtJhr.  Chem.  Nahr.,  1894.  9.  484.) 

Dr.  Carl  Amthor,  in  Bei  ieht  ueber  die  ThaetigUeit  des  chetnischen  I  r.boratoriumn 
dor  kaiserlichen  t'olizeidireefioi'  zu  SIrasshurg  in  der  Zeit  vom  1.  ./an.,  1892,  bis 
1.  Jan.  1893,  reports  that  of  710  samples  of  wine  exumiuod  132  wore  ooudomned.     Of 


RECIPROCITY    STATEMENTS. 


1?? 


diuiu  aultite, 


tliese  the  majurity  were  gallizod,  2  contained  too  much  sodium  chlorid,  7  commercial 
idncose,  3  an  excessive  aaionnt  of  acetic  acid,  and  a  number  were  fortified.  (Vtjlir. 
Cliem.  Nalir.,  1894,  9,  344.) 

For  the  next  year  tlio  same  autlior  reports  from  the  same  source:  6  samples  of  beer 
were  examined  and  4  condemned;  14  samples  of  brandy  and  liquor  were  examined 
and  5  condemned;  983  8anii)le8  of  wine  were  exauiin'."!  and  222  condemned.  Among 
those  were  8ampk%s  of  many  diii'erent  methods  of  adulteratiou.     (Ibid,  1894,  9,  311.) 

The  neict  year,  1894,  3  samjiles' of  beer  were  adulterated  of  15  examined;  and  of 
916  samples  of  wine,  127  were  adnlterat<^d,  and  5  were  cor'^scated  and  the  dealers 
lined  7(55  marks  au'l  sei.tenced  to  two  months'  imprisonment.  The  articles  state  that 
the  abseuc*}  of  a  celliii'  control  in  the  Palatinate  permits  the  adulteration  of  wine 
there  tc  an  almost  unlimited  extent.     (Ztschr.  Nahr.-Hyg.,  1895,  9,  240.) 

Prof.  Dr.  Th.  Dietrich,  in  Marburg,  found  one  sweet  wine  to  which  sugar  had  been 
added,  and  three  cognacs  containi-  ^  too  large  an  amount  of  extract.  ( Vtjhr.  Chem. 
Nahr.,  1894,  9,  203.) 

Ke])ort8  from  14  laboratories  in  Germany  show  that  of  the  samplefl  examined  in 
1S91,  20  per  cent  of  the  beer,  4.8  per  cent  of  the  braiulies  and  liquors,  and  2(i  per  cent 
of  the  wine  were  adulterated;  while  in  1892  the  adulterated  samples  included  9.7 
])er  cent  of  the  beer,  8.8  per  cent  of  the  brandies  and  li'juors,  and  30.6  iier  cent  of 
file  wine.  (XII  Vers. -Her.  fr.  Vereinig.  baur.  Vertr.  angew.  Chem.,  1893,  S.  63.  65 
VtJhr.  Chem.  Nahr.,  1894,  9,  168.) 

i)r.  II.  Weller,  in  Darmstadt,  reports  adulterations  as  follows  (Ibid.,  1894, 9,  312.): 


coloring  mat- 


Year. 

Sample. 

Nnmtipr 
examined. 

Nuinhcr 
ailiilter- 

Ut«ll. 

Yeiu:. 

Sample. 

Number 
exuiuiued. 

Number 

adulter 

ated. 

]S!)0 

AVine 

186 

12 

190 

G 

;i 

24 

isn2 

I«il2 

Spirits 

\Vi;ie 

.'JO 
226 

8 

]8'll 

}U\l'.T 

84 

1891 

AViue 

In  the  Berlin  Nahrungsmittel-Controlle  20  samples  of  wine  were  examined  in  .June 
in  1895.  Of  tlicsd,  6  (uugarische  Suessweine  (medicinal)  wei'e  adulterated  by  the 
addition  of  sugar  and  alcohol.     (Ztschr.  Nahr.  Ilyg.,  1895,  9,  240.) 

Butter  "made  in  Germany." 

When  the  preaitlent  of  the  board  of  agi'icnUure  was  speaking  at  the  farmers'  din- 
ner, he  incidentally  referred  to  some  steps  whi(^h  his  dejiartiuent  ha^  been  taking 
with  re|?ard  to  Imtter  adulteration.  It  isuot  wi'bsly  known  that  customs  ollicers  have 
bt'cu  taking  s.im])lc8  of  foreign  butter  at  the  port  of  eiitry,  and  that  these  sauipb-s  have 
been  subjected  to  analysis.  In  July  nearly  300  samples  were  tested.  After  a  brief  dis- 
coutinuance  the  examination  began  again  in  September,  with  the  result  that  in  fiv« 
weeks  1 16  sanii)le8  wtsre  analyzed,  50  being  found  adulterate  I.  The  great  r percent- 
age was  "made  in  (iermany" — 10 adulterated  consignments  out  ,)f  11.  Httiland  also 
had  '-{  adulterattsd  sain])le8  out  of  every  3  tested.  During  the  month  of  Novemlier 
the  fraud  was  still  going  on,  29  8aun>le8  out  of  145  tests  being  found  adnlttsrated. 
Of  13  lots  from  Germany  11  vere  not  what  they  were  represented  to  be,  and  12  out 
of  16  from  Holland  contained  2*i,  othor  than  that  of  butter.  (From  Viji'de  Jaarvor- 
«.ag,  1896,  p.  33.) 


n- 


Hi'! 


r; 

1 

1 

APPENDIX   E. 


RESTRICTIONS  ON  AMERICAN  PRODUCTS  BY  FOREIGN 

COUNTRIES. 


135 


W^' 


RESTRICTIONS  ON  AMERICAN  PRODUCTS  BY 
FOREIGN  COUNTRIES. 


GERMANS'. 


IMPERIAL   ORDER  PRORIBITIXG   THE  IMPORTATION  OF  CATTLE  AND 
FRESH  BEEF  FROM  THE  UNITED  STATES. 


No.  111.] 


Saturday,  October  27, 1891. 


The  imperial  chancellor,  on  the  strength  of  paragraph  4,  ]»agc  li,  of 
the  impei'ial  law  of  Juno  23,  1880,  concerning  protection  against  and 
suppression  of  cattle  diseases,  after  the  arrival  here  of  two  shipments 
of  American  cattle  containing  sick  animals,  and  after  the  certilication 
by  the  imjierial  health  ofiice  that  the  sickness  is  "Texas  fever,"  has 
ordered  the  prohibition  of  the  imi)ortation  from  America  of  living  beef 
cattle  and  fresh  meat.  On  the  strength  of  paragraph  7'  of  the  said 
law  it  is  therefore  ordered  that — 

The  importation  of  living  beef  cattle  and  fresh  beef  from  America  is 
forbidden.  The  importation  will  nevertheless  be  permitted  of  such 
shipments  as  have  left  America  before  and  including  the  28th  instant. 
The  cattle  the  im])ortation  of  which,  according  to  the  above  provision, 
is  still  to  be  ])ermitted  must,  however,  be  slaughtered  at  once  in  the 
slaughterhouse  at  tnis  i)lace. 

Offenses  against  tliis  prohibition  will,  according  to  paragragh  GO  of 
the  imperial  law  concerning  i)rotection  against  and  suppression  of  cattle 
diseases,  be  i)unished  with  a  fine  up  to  150  marks,  or  arrest,  in  so  far  as 
no  greater  ])enalty  is  ])rescribed  by  law.  In  addition  to  this  i)unish 
meiit  the  cattle  or  fiesh  meat  imported  in  contravention  of  this  prohi- 
bition will  be  confiscated,  whether  the  cattle  or  meat  belong  to  tiie 
offender  or  not. 

Given  at  the  session  of  the  senate,  Hamburg,  October  26,  1894. 

'Section  7  of  the  iniporial  law  of  June  23,  18S0,  is  as  follows: 

"  V.'lion  a  contagious  disease  prevails  or  breaks  out  abroad  among  domestic  cattle 
to  an  extent  involving  danger  to  the  cattle  of  this  country — 

"  1.  The  importation  of  living  or  slanghtt-red  animals  ^rom  the  country  in  which 
the  disease  y)r(>vails  may  bo  prohibited  entirely  or  as  to  certain  districts,  or  may  be 
subjected  to  such  restrictions  as  will  exclude  or  diminish  the  danger  of  the  importa- 
tion (of  the  disease). 

"2.  Communication  with  animals  within  the  Empire  nitty  be  subjected  to  such 
regulations  as  are  adapted  to  prevent  the  further  spread  of  the  disease,  if  it  has  been 
imjxtrted. 

"  The  restrictions  as  to  importation  and  oommunication  must  also  be  extended,  so 
far  ii«  necessary,  to  the  im]iortation  of  raw  animal  products  and  of  all  such  articles 
as  might  bo  the  means  of  transmitting  the  infectious  matter. 

"The  chancellor  of  tlie  Empire  must  be  immediately  notified  of  the  enactment, 
re])«^al,  or  modification  of  any  restriction  as  to  imiiortation  or  commuuication. 

"The  restrictions  enacted  as  to  importation  or  couuuuuicati 


without  dtlay." 


licatiou  must  be  published 


im 


138  RECIPUOCITY    STATEMENTS. 

[Translntion.l 

Cattle  quarantine  regulations  taking  effect  October  1,  1895.^ 

PROCLAMATION. 

The  Council  of  the  Confederacy  (Bundesrath),  at  its  session  of  June 
27, 1895,  ih  view  of  section  (5  and  section  7,  No.  1,  of  the  hiws  of  June  23, 
1880,  and  May  1,189-t,  for  the  prevention  and  supinession  of  cattle  dis- 
eases, adopted  the  following  re^^ulations  for  tlie  veterinary  jwlice  treat- 
ment of  ruminating  animals  and  swine  arriving  from  abroad  by  sea  for 
importation. 
Berlin,  July  11, 1895. 

The  iMrERiAL  Chancelloe. 
By  Von  Boettioher. 


REGHTLATIONS  FOR  THE  VETERINARY-POLTCE  TREATMENT  OF  RUMI- 
NATING ANIMALS  AND  SWINE  ARRIVING  FROM  ABROAD  BY  SEA  FOR 
IMPORTATION. 

I.  Kuminating  animals  and  swine  arriving  from  abroad  by  sea  for 
importation  are  to  be  subjected,  before  they  are  allowed  to  be  slaugh- 
tered at  or  outside  of  the  seai)ort,  or  admitted  to  free  communication, 
to  a  quarantine  of  four  weeks  in  an  establishment  for  that  purjiose,  at 
the  expense  of  the  importers. 

The  annexed  rules  for  the  arrangement  and  management  of  the 
quarantine  establishments  are  in  force. 

II.  Those  cattle,  sheep,  and  swine  which  are  admitted  to  free  com- 
munication after  having  undergone  the  quarantine  are  to  be  subjected, 
at  their  ])oint  of  destination,  to  a  further  observation  for  the  space  of 
five  months,  which  observation,  however,  shall  not  restrict  their  owners 
in  the  disposal  of  the  animals. 

III.  The  imperial  chancellor  is  authorized,  in  the  case  of  ruminants 
and  swine  from  tliose  countries  in  which  the  diseases  attecting  these 
kinds  of  animals  have  not  been  long  prevalent,  to  reduce  the  (luaran- 
tine  period  to  10  days,  either  for  all  or  for  certain  species  of  animals. 
When  such  an  order  is  issued  for  cattle,  shec]),  or  swine,  they  are 
released  from  the  Ave  months'  observation  prescribed  by  No.  11. 

IV.  The  central  authorities  of  that  confederated  State  in  whose  terri- 
tory the  importation  (irst  takes  i)lace  (the  border  State)  are  authorized, 
upon  agreement  with  the  central  authorities  of  that  confederated  State 
for  which  the  shipment  is  intended,  to  permit  the  importation  of  breed- 
ing animals,  trained  animals,  and  animals  intended  for  zoological  gar- 
dens, parks,  or  similar  establishments,  witlsout  previous  quarantine, 
])rovided  such  animals  were  not  ship])ed  with  animals  subject  to  quar- 
antine. 

The  latter  authorities  are  authorized  to  adopt  measuies  of  super- 
vision at  the  point  of  destination,  in  accordance  with  the  circumstances 
of  the  case,  for  animals  admitted  without  quarantine. 


'  Tluwo  roKiilations  do  not  affect  the  prohibitory  order  of  October,  1894,  aud  are  not 
tlicrulVuc  applicable  to  cuttle  from  the  United  Statca. 


KECIPROCITY    STATEMENTS. 


139 


V.  These  regiilatioufi  apply  oi»ly  to  the  importation  of  ruminants  and 
swine  from  (M.untries  toward  which  more  utringent  restrictions  (prohi- 
bition of  importation)  have  not  been  adopted. 

VI.  These  r^^gulations  go  into  force  October  1, 1895. 


RULES  FOR  THE  ARRANGEMENT  AND  MANAGEMENT  OF  SEA  QUAR- 
ANTINE ESTABLISHMENTS  FOR  FOREIGN  CATTLE. 


•al  gar- 


1.  It  is  left  to  the  discretion  of  the  confederated  States  either  to  erect 
and  manage  the  quarantine  establishments  themselves,  or  to  intrust 
the  erection  or  management  to  municipalities  or  private  individuals. 

2.  The  quarantine  establishments  are  to  be  placed  as  near  as  possible 
to  the  landing  places  intended  for  foreign  cattle,  and  which,  so  far  as 
practicable,  are  to  be  used  only  for  such  cattle.  If  the  establishments 
are  not  in  the  innnediate  neigh'  jrhoodof  the  landing  places,  the  cattle 
nuist  be  transported  to  them  only  by  railroad. 

Satisfactory  arrangements  must  be  made  to  prevent  domestic  cattle 
from  visiting  the  landing  places,  their  neighborhood,  and  the  roads 
leading  thence  to  tlie  quarantine  stations,  as  well  as  the  neighborhood 
of  the  stations. 

3.  The  quarantine  stations  must  be  inclosed,  and  must  be  furnished 
with  their  own  wells  or  with  water  ])ipes. 

The  stables  must  be  satisfactorily  arranged  for  the  reception  and 
care  of  the  cattle  to  be  placed  in  them,  and  must  permit  the  separate 
location  of  the  diilerent  shipments;  they  must  be  built  and  furnished 
in  such  a  way  that  they  and  their  contents  can  be  thoroughly  disin- 
fected. 

4.  The  quarantine  stations  mnst,  as  a  rule,  unless  they  are  provided 
with  their  own  slanghterhousi^s,  be  connected  with  the  slaughterhouse 
of  the  seaport  by  a  line  of  rails  adapted  to  railrcad  cars. 

At  stations  which  have  not  tlieir  own  slaught  irhouses,  and  which 
are  not  connected  witli  the  slanghterhouse  (of  tiie  seaport)  by  rail, 
tightly  closing  wagons,  from  wliicli  dung,  etc.,  can  not  fall  out,  must 
b(^  provided  for  the  transportation  of  the  cattle  to  the  slaughterliouse. 

The  slaughterhonse  must  be  so  arianged  that  the  quarantine  cattle 
can  be  kept  separate  until  they  are  slauglitored. 

5.  The  police  permission  to  put  a  quarantine  station  in  operation  must 
not  be  granted  until  the  requirements  of  the  foregoing  Nos.  2-4  have 
been  comi)lied  with. 

Tiie  permission  to  i)ut  in  operation  a  station  which  is  not  provided 
with  its  own  slaughterhouse,  and  which  is  not  connected  with  the 
slaughterhouse  (of  the  seai)ort)  by  a  line  '^f  rails  adapted  to  railroad 
cars,  can  only  be  granted  exceptioiially  in  the  case  of  special  circum- 
stances worthy  of  consideration. 

<>.  When,  in  landing  cattle,  means  of  transiwrtation  (boats,  etc.)  are 
employed  which  do  not  belong  to  the  vessel  bringing  the  cattle,  they, 
as  well  as  the  landing  bridge,  the  landing  ])lace,  and  the  road  leading 
to  the  quarantine  station,  must  be  cleaned  after  tlie  landing,  and  where 
a  case  of  disease  is  discovered,  they  must  be  disinfected. 

Dung  and  refuse  nuist  not  be  landed  from  the  vessels  bringing  cattle 
without  si)ecial  permission  of  the  police,  and  must  be  destroyed  or 
disinfected  immediately  after  the  landing,  under  the  supervision  of  the 
police. 


ni 


^1 


140 


RECIPROCITY    STATEMENTS. 


Dung  and  refuse  can  be  removed  from  the  quarantine  stations  onl 
after  they  have  been  disinfected  und3r  the  supervision  of  the  police. 

7.  The  cattle  placed  in  a  quarantine  station  must  be  examined  daily 
by  an  oiflcif  i  veterinary  surgeon.  Such  veterinary  surgeon  must  not 
accept  any  compensation  from  private  individuals  (cattle  owners, 
agents,  owners  of  stations)  for  this  or  any  other  ofiicial  work  of  his. 

The  State,  however,  vdiich  pays  the  veterinary  surgeons  appointed 
to  the  veterinary  service  at  the  quarantine  stations,  or  whicli  compen- 
sates them  for  their  labor,  is  authorized  to  require  of  the  parties  inter- 
ested fees  for  the  veterinary  supervision,  which  fees  are  to  be  so  much 
for  each  head  of  cattle. 

8.  When  a  contagious  cattle  disease  is  discovered  among  the  cattle 
at  a  quarantine  station  the  station  must  be  immediately  closed  to  fur- 
ther admission,  and  all  the  cattle  must  be  slaughtered,  under  the  super- 
vision of  the  jjolice,  in  the  slaughterhouse  of  the  station  or  in  the 
slaughterhouse  of  the  seaport,  to  which  the  animals  must  be  trans- 
ported in  railroad  cars  or  accompanied  by  the  police  in  tightly  closing 
wagons  (No.  4,  paragraph  2). 

The  station  must  bo  completely  disinfected,  under  the  supervision  of 
an  official  veterinary  surgeon,  and  must  not  be  reopened  until  such 
disinfection  has  been  completed. 

9.  Such  rules  must  be  issued  with  regard  to  persons  employed  in  the 
quarantine  stations  and  those  frequenting  them  as  are  adapted  to  pre- 
vent the  indirect  transmission  of  infectious  jaatter. 


ADMISSION  OF  AMERICAN  HOG  PRODUCTS. 

Mr.  Jacl<son  to  Mr.  Olney. 

No.  326.]  '  Embassy  of  the  United  States, 

Berlin,  August  3,  1895. 
Sir:  Eespectfully  referring  to  the  embassy's  dispatch  No.  230,  of 
March  21, 1895, 1  have  the  honor  to  inform  you  that  in  yesterday's  issue 
(No.  154)  of  the  official  Berliner  Oorrespondenz  attention  was  called 
to  the  American  regulations  of  February  7  last  regarding  the  insi)ec- 
tion  of  meat  intended  for  export,  copies  of  which  had  been  transmitted 
to  the  foreign  office  by  the  embassy  in  March  last.  After  showing 
what  these  regulations  are,  the  article  goes  on  to  say  that  "hereafter, 
in  consequence  of  them,  in  accordance  with  the  imperial  order  of  Sep- 
tember 3,  1891,'  and  of  the  regulations  of  February  7,  1895,  referred 

'  Imperial  decree  of  September  3,  1891,  is  as  follows: 

We,  William,  by  the  grace  of  God  German  Emperor,  King  of  Prussia,  etc.,  decree, 
in  tlio  name  of  the  Empire,  the  assent  of  the  Bundesrath  having  been  obtained,  what 
follows : 

Section  1.  The  decree  respecting  the  prohibition  of  the  importation  of  swine, 
swine's  flesh,  and  sausages  of  American  origin  of  March  6,  1883  (Imperial  Law 
Gazette,  page  31),  ceases  to  be  of  force  for  living  swine,  as  well  as  for  such  products 
as  are  provided  with  an  official  certificate  stating  the  flesh  has  in  the  laud  of  origin 
been  exaiuiued  pursuant  to  the  rules  in  force  there  and  has  been  found  free  from 
qujilities  injurious  to  health. 

Sue.  2.  The  chancellor  of  the  Empire  is  empowered  to  adopt  appropriate  measnres 
for  the  control  of  the  character  of  the  swine  flesh  imported  from  America. 

Skc.  3.  This  decree  enters  into  force  on  the  day  of  its  publication. 

In  testimony  whereof  our  own  proper  signature  and  the  imperial  seal  are  hereto 
affixed. 

Done  at  Castle  Schwarzman  the  3d  of  September,  1891. 

[L.  0.]  William. 

Yov  Cafbiyi. 


RECIPROCITY    STATEMENTS. 


141 


to,  hog  products  and  sausajjes  of  American  ori<?in  will  be  allowed  to  be 
imported  into  the  Empire  only  when  the  shipments  are  accompanied  by 
the  designated  special  certificates." 

I  have,  etc.,  John  B.  Jackson. 


FEANCE. 


MINISTERIAL   ORDER    OF  FEBRUARY  24,  1895,  PROHIBITING    THE   IM- 
PORTATION OF  CATTLE  FROM  THE  UNITED  STATES. 

[From  the  Journal  Ofliciel  de  la  K6publiqiio  Fran9al8e,  February  25,  1895,  p.  1074.] 

The  Minister  of  Agriculture: 

Pursuant  to  the  law  of  July  21,  1881,  on  the  sanitary  police  regula- 
tions regarding  animals  and  the  decree  of  June  22,  1882,  relating  to  the 
regulations  for  the  public  administration  for  the  observance  of  the  same ; 

In  view  that  there  are  many  contagious  diseases  which  do  not  exist 
in  France,  but  prevail  among  the  cattle  in  the  United  States  of  America, 
cases  having  been  found  among  animals  imported  from  that  country 
into  Europe,  it  is  only  reasonable  that  measures  be  tak(Mi  to  prevent 
the  introduction  of  these  diseases  into  our  territory,  and  having  the 
opinion  of  the  consultative  committee  on  epizootics  and  on  the  report  of 
the  counsellor  of  state,  director  of  agriculture — 

liesolved  : 

Article  1.  The  importation  into  France  and  the  transit  of  cattle 
coming  from  the  United  States  of  America  over  our  land  and  sea  fron- 
tiers is  interdicted  until  otherwise  ordered. 

Ilowever,  cattle  sent  from  the  United  States  before  February  24, 
1895,  shall  be  admitted,  providing  they  be  landed  under  the  conditions 
prescribed  by  law  for  the  admission  of  foreign  cattle. 

Art.  2.  Prefects  of  departments  are  charged,  each  as  it  concerns 
him,  with  the  execution  of  this  decision. 

Done  at  Paris,  February  24,  1895. 

Gadaud. 


i  ■ 


measares 


BELGIUM. 

MINISTERIAL  ORDER  OF  DECEMBER  S9,  1S94,  PROHIBITING  THE  IMPOR- 
TATION OF  CATTLE  FROM  THE   UNITED  STATES. 

[Translation.] 

MINISTRY  OF  AGRICULTURE,  INDUSTRY,  LABOR,  AND  PUBLIC  WORKS. 

Bovine  animals  coming  from  the  United  States  of  America. — Imiwrtation 

prohibited. 

The  Minister  of  Agriculture,  Industry,  Labor,  and  Public 

Works  : 

Considering  the  law  of  the  30th  of  December,  1882,  on  the  sanitary 
police  of  domestic  animals,  as  well  as  the  general  adminivStration  reg- 
ulation of  the  20th  of  September,  1883,  adopted  in  execution  of  this  law; 

Coiifsidering  again  the  ministerial  order  of  the  2r)th  of  August,  181)4, 
subjecting  to  a  quarantine  of  forty-five  days  animals  of  the  bovine  spe- 
cies sliipped  from  the  United  States  of  America,  contagious  pleuro- 
pneumonia having  been  discovered  among  animals  of  this  origin; 


142 


BECirROClTY    STATEMENTS. 


Considering  that  the  same  contagious  anection  was  discovered  on 
the  2r)th  of  December,  1894,  iu  two  animals  shipped  from  the  aforcsiiid 
country,  and  disembarked  at  Antwerp  on  the  17th  day  of  thu  same 
montli; 

Considering  the  advice  of  the  veterinary  insi)ection  service, 

ORDERS: 

Article  first.  The  importation  and  the  transit  of  animals  of  the 
bovine  species  coming  from  tlie  United  States  of  America  are  inter- 
dicted until  ulterior  disposition. 

The  direct  transit  of  these  animals  can  be  made  by  railway  only  and 
iu  sealed  wagons,  and  without  being  unloaded  en  route. 

Article  second.  By  exceptional  measure  animals  of  the  origin 
indicated  in  the  i)receding  article  in  course  of  shii)ment  before  the  Ud 
day  of  January,  1895,  may  be  disembarked  at  Antwerp,  under  the  con- 
dition of  being  subjected  in  the  i)ort  of  that  city  to  a  quarantine  of 
forty-five  days  at  least,  or  may  be  directed  toward  a  public  slaughter- 
house, to  be  there  butchered  in  the  delay  provided  for  by  the  regulation 
dispositions. 

Article  third.  The  order  above  referred  to  of  the  7th  of  December, 
1894,'  is  repealed. 

Brussels,  December  29,  1894. 

Leon  de  Bruyn. 


DENMARK. 


decree  regarding  the  prohibition  op  the  importation  of 

LIVE   cattle  and  FRESH  MEATS  OF   THE   SAME   FROM  AMERICA. 

[Translation.] 

With  reference  to  the  act  of  April  14, 1893,  No.  14,^  regarding  con- 
tagious diseases  among  domestic  animals,  in  order  to  i>revent  the  imjmr- 
tation  of  Texas  fever,  which  is  prevalent  in  America,  it  is  hereby 
prohibited  to  import  into  this  country  from  the  continent  named  any 
live  cattle  or  fresh  meats  of  the  same. 

This  decree  does  not  aj/ply  to  meats  packed  in  hermetically  sealed 
cans. 

The  decree  of  February  14, 1879,  prohibiting  the  importation  of  live 
cattle  from  the  United  States  of  America  is  hereby  abrogated. 

These  regulations  to  take  effect  at  once. 

Which  is  hereby  proclaimed  for  the  information  and  guidance  of  all 
concerned. 

Department  of  the  interior,  November  19,  1894. 

Horring. 


'This  (late  here  given  should  evidently  be  August  25,  1894. 

'^Section  14  of  the  act  of  April  14,  1893,  translated,  is  sis  follows: 

"When  there  is  reason  to  believe  that  infectious  disease  has  broken  out  among 
domesti''.  animals  in  a  foreign  country  the  minister  of  interior  may  i)rohibit  the 
importat  on  from  said  country  of  the  class  of  animals  infected,  and  of  raw  commer- 
cial products  of  same — for  instance,  hair,  hides,  tallow,  and  meat — as  well  as  any 
other  animals  or  articles  which  might  carry  the  infection. 

"When  the  disease  breaks  out  in  this  country  the  minister  of  interior  may  either 
absolutely  prohibit  the  carrying  away  from  the  infected  districts  or  inftscted  part  of 
same  any  animal  of  the  infected  class,  as  well  as  of  other  chiHses,  and  articles,  by 
which  the  disease  may  be  introduced  to  other  districts  or  places;  or  he  may  create 
certain  conditions  to  be  complied  with — for  instance,  the  procuring  of  a  bill  of 
health — all  for  the  purpose  of  arresting  and  preventing  the  spread  of  the  dibeaao." 


RECIPROCITY    STATEMENIU 


143 


DECREE  REGARDlNCr  TRT?    T\f«,>.,,.. . 

[Traimlatioii.] 

tiers  and  ninelined  pork  fat  sLin  n  ^  /  '."'  "!"^'"^1'"«'  I'Off  '>la.I- 
saul  products  are  concerned,  imv^^^^^^^^^  '<;i;c  >y  Hbro«ated  so  fur  as 

by  authentic  certificates  tl.at  thcTlnv^  ?ii^  '^  '''T  '^*'«'»"I>anied 
ineutfron.  tlie  United  Stateriii^i^J.:^..!  ^^'^•'  "'«l>W'te«l  prior  to  slii,,. 
try,  and  by  .such  inspection  Cldto*^^^^,:^^  .'''f  ^'''''  "^"  ^''^^^  «-"  " 
human  food.  ^  ""^^  ^^  ^^  untainted,  sound,  and  fit  for 

yjese  regulations  to  take  effect  at  once 
eoS-ta.^  ^-^""^  '"-'»'-  '■-  tI.e'So™„ti„„  ana  guU..„oe  of  aU 
Uepartoeut  of  the  interior,  September  8, 1891. 

iNGERSLEV. 


APPENDIX   P. 


REPLIES  OF  COMMERCIAL  AND  INDUSTRIAL  ORGANIZATIONS 
rO  INQUIRIES  KROM  THE  COMMITTEE  ON 
WAYS  AND  MEANS 


.5*1 


H.  Bep.  2263 .10 


145 


'■ 


la    !■ 


COMMERCIAL  AND   INDUSTUIA.^  ORGANI- 
ZATIONS. 


OIEOULAR  OF  INQUIRY. 

Subcommittee  on  Reciprocity  and  Commercial  Treaties. 

Albert  J.  Hopkins,  Chairman. 
Jonathan  P.  Dolliver,  Jambs  A.  Tawney, 

Benton  McMilliit,  Joun  L.  McLaukin. 

William  E.  Curti8,  Special  Agent. 

Committee  on  Ways  and  Means, 

House  of  Eepresentatives, 
Washington,  I).  C,  March  4,  1896. 

SiE:  In  order  that  they  may  give  more  intelligent  consideration  to 
pending  and  proposed  legislation,  the  subcommittee  of  the  Committee 
on  Ways  and  Means  of  the  House  of  Representatives  in  charge  of  bills 
relating  to  reciprocity  arrangements  and  commercial  treaties  desire  an 
expression  of  the  views  and  opinions  of  the  commercial  and  industrial 
organizations  of  the  United  States  upon  the  following  points,  namely: 

First.  Was  the  eftoct  of  the  reciprocity  arrangements  negotiated  by 
the  Government  with  certain  foreign  nations  under  the  authority  of  the 
tariff  act  of  1890  favorable  or  unfavorable  to  the  foreign  commerce  of 
the  United  States? 

Second.  What  was  the  effect  of  their  repeal  by  the  tariff  act  of  1894? 

Third.  Is  it  expedient  and  advisable  to  apply  the  reciprocity  i>rinci- 
ple  to  future  tariff' legislation,  and  to  enact  a  general  law  authorizing 
the  President  to  negotiate  reciprocity  treaties  with  foreign  nations,  so 
far  as  possible? 

Fourth.  What  can  be  accomplished  by  diplomatic  negotiations  in 
extending  the  export  trade  of  the  United  States? 

If  you  will  present  these  subjects  to  the  members  of  your  organiza- 
tion, and  request  them  at  their  early  convenience  to  take  some  formal 
action  thereon,  we  shall  be  greatly  obliged. 
I  am,  sir,  your  obedient  servant, 

A.  J.  Hopkins, 
Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


REi'LIES. 

The  National  Board  of  Trade. 

January  28, 1896. 

Whereas  under  the  reciprocal  trade  relations  between  the  United 
States  and  the  Spanish- American  States  and  Colonies  under  treaties 
existing  prior  to  August,  1891,  very  large  interchanges  of  exports  ajid 
imports,  including  both  agricultural  productions  and  manufactures, 
were  established;  and 

U7 


r^ 


148 


RECIPROCITY    STATEMENTS. 


i!{ 


iiilt 


Wliorciis  the  abrojjation  of  tliese  treaties  by  legislation  of  Congress 
luis  been  followed  by  very  material  decrease  in  such  business;  and 

Whereas  the  IStates  and  Colonies  are  increasing  in  wealth  and  com- 
niereial  inijjortance,  and  should  be  knit  as  closely  as  possible  to  th6 
United  States  by  bonds  of  comniercial  unity  as  well  as  by  our  moral 
support  against  European  aggression  and  injustice;  and 

Whereas  the  markets  in  tliese  countries  represent  in  a  sense  a  coast- 
wise trade  which  should  be  made  and  kept  our  own  against  anycomi)e- 
tition  from  any  quarter  whatever,  but  which,  unless  invited  and  secured 
by  a  renewal  of  reciprocal  arrangtsments,  must  inevitably  fall  into  other 
iiands;  and 

Whereas  both  experience  and  reason  show  the  great  benefit  in  the 
past  and  the  inevitable  immensely  greater  benefit  in  the  future,  both 
to  our  agri(!ultural  interests  and  to  our  manufactures  and  shipping, 
which  our  former  reciprocal  trade  arrangements  established  and  will 
guarantee : 

Be  it  resolved,  That  the  National  Board  of  Trade  urgently  demands 
of  Congress  the  enactment  of  such  legislation  as  will  reestablish  and 
secure  our  former  reciprocal  trade  relations  between  the  United  States 
and  MexicH),  the  Central  and  South  American  countries,  and  the  Spanish- 
American  Colonies. 


Merchants^  Exchange  of  St.  Louis. 

St.  Louis,  March  19, 1896. 

Dear  Sir:  Acknowledging  receipt  of  your  circular  letter  of  March 
4,  in  reference  to  proposed  legislation  relating  to  reciprocity  arrange- 
ments and  commercial  treaties  and  projjounding  certain  inquiries  in 
relation  thereto,  the  undersigned  take  i»leasure  in  behalf  of  the  board 
of  directors  of  the  Merchants'  Exchange  of  St.  Louis  in  replying 
thereto  as  follows: 

Keplying  to  interrogatory  first:  The  effect  of  reciprocity  treaties 
negotiated  by  the  (lovernment  under  the  tariff  act  of  1890  was  most 
favorable  to  the  trade  of  St.  Louis,  permitting  the  exportation  to  the 
Latin  States  of  increased  quantities  of  flour,  grain,  meats,  lard,  agri- 
cultural implements,  and  other  manufactures. 

Iteplying  to  interrogatory  second :  The  effect  of  the  repeal  was  to 
greatly  diminish,  and  in  some  instances  to  absolutely  prohibit,  ship- 
ments to  these  countries. 

lU'i)lying  to  interrogatory  third:  In  the  judgment  oi  this  board  the 
reeuiU'ting  of  a  reciprocity  law  authorizing  the  President  to  negotiate 
treaties  with  foreign  nations,  and  especially  with  the  Latin  American 
States,  would  be  of  immense  advantage  and  result  in  the  extension  of 
trade  relations  to  an  equal  or  greater  extent  than  existed  at  the  time  of 
the  repeal  of  the  reciprocity  act. 

Keplying  to  interrogatory  fourth :  Diplomatic  negotiations  with  for 
eign  countries  would  serve  to  make  known  the  advantages  of  this 
country  as  a  source  of  supply  of  breadstull's,  provisions,  and  manufac- 
tures, and  many  other  articles  of  which  this  ci)untry  has  a  surjdus,  and 
also  bring  to  tlae  knowledge  of  our  peojde  the  markets  iu  which  the 
articles  needed  here  can  be  obtained  at  best  a^lvantage. 
Uespectfully, 

C.  H.  Spencer,  President. 
Geo.  H.  Morgan,  /Secretary. 

Hon.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


RECIPROCITY    STATEMENTS. 


149 


ngress 

,nd 

d  com- 
to  thS 
moral 

a,  coiist- 
conn)e- 
secured 
to  other 

t  in  the 
[•e,  both 
ripping, 
and  will 

Lemands 
lish  and 
d  States 
Spauish- 


?,  1896. 
of  March 

arrange- 
jnirie.s  in 
he  board 

replying 

treaties 
vas  most 
on  to  the 
ard,  agri- 

d  was  to 
ibit,  ship- 
board the 
[negotiate 

Lmerican 
lension  of 

je  time  of 

with  for- 
ts of  this 
Imannfac- 
}plu8,  and 

rhich  the 


lident. 
netary. 

iTreatiea. 


The  Cleveland  Chambvr  of  Commerce. 

March  17, 1800. 

Dear  Sir:  Your  favor  of  the  4tli  instant  has  been  dnly  considered 
by  the  manufacturers'  board  of  this  chamber,  and  I  have  the  honor  to 
advise  you  that  the  following  responses  to  the  questions  contained  therein 
represent  the  sentiment  of  that  body: 

First.  The  reciprocity  arranj;ements  negotiated  by  the  Government 
with  certain  foreign  nations  under  the  authority  (»f  the  tarift'  act  of  1890 
were  favorable  to  the  foreign  commerce  of  the  United  States. 

Second.  Their  repeal  in  1894  was  a  decided  detriment  to  the  foreign 
trade  of  this  country. 

Tliird.  This  tiuestion,  for  greater  convenience  in  replying,  has  been 
divided  into  two  sections,  as  follows: 

{(i)  Is  it  expedient  and  advisable  to  apply  the  reciprocity  princii>le  to 
future  tariff  legislation  ?    Yes. 

{b)  Is  it  expedient  and  advisable  to  enact  a  general  law  authorizing 
the  President  to  negotiate  reciprocity  ti'^'ities  with  foreign  nations  so 
far  as  possible?  It  would  seem  desirable  to  have  such  treaties  made 
subject  to  the  ai^proval  of  the  Senate. 

Fourth.  The  various  consuls  might  study  and  report  regularly  upon 
the  opportunities  in  and  requirements  of  the  nmrkets  of  their  respec- 
tive consulates.  This  informati(m,  compiled  and  disseminated  by  the 
])roper  Dejjartment  at  Washington,  would  be  of  great  service  to  the 
manufacturers  of  the  United  States. 
Eespectfully, 

Ryerson  Eitchie,  Secretary. 

Hon.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


Chamber  of  Commerce,  Milwaukee. 

March  17, 1896. 

Dear  Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  your  cir- 
cular letter  dated  the  4th  instant,  asking  for  the  views  ([  opinions  of 
tliis  body  relating  to  legislation  on  re<'iprocity  arrangements  and  com- 
mercial treaties  with  certain  foreign  nations. 

The  board  of  directors  of  this  cliamber,  comprising  about  GOO  mem- 
bers, is  its  deliberative  body,  and  as  such  lias  already  given  the  subject 
of  your  letter  careful  consideration,  and  expressed  itself  unanimonsiy 
in  favor  of  the  renewal  of  the  reciprocity  arrangements  and  commercial 
treaties  negotiated  by  the  Government  with  f(neign  nations  under 
luitliority  of  the  tariff  act  of  1890,  as  embodied  (in  part  at  least)  in  the 
pending  House  bill  3212.  Tiie  acition  of  our  board  on  this  subject  was 
conveyed  to  the  Senators  and  Kei)resentatives  of  Wisconsin  in  Congress 
under  date  of  the  13th  instant.  Tlie  members  of  our  directory  are 
representative  business  men,  and  among  them  i)rominent  members  of 
the  two  great  political  parties.  There  will  not  be  atiother  meeting  of 
the  board  at  which  f;»rmal  action  (!ouhl  be  taken  in  resi)onse  to  your 
infjuiries  before  the  middle  of  next  month,  but  I  think  the  action 
already  taken  will  be  sullicient  to  slow  you  the  sentiinents  of  this 
body  on  the  sul)je(!t. 

Yours,  respectfully,  W.  J.  Lanoi  on, 

Secretary. 
lion.  A.  ,1.  Hopkins, 

Chairman  Subcommittee  on  liiciprocity  and  Commercial  Treaties, 


^ — 


150 


RECIPROCITY    STATEMENTS. 


Cincinnati  Chamber  of  Commerce  and  Merchants'  Exchange. 

Cincinnati,  March  16, 1896. 

Dear  Sir:  The  Cincinnati  Cliamber  of  Commerce  having  been  re- 
quested to  indorse  the  bill  introduced  in  Congress  by  Hon.  W.  R.  Kerr, 
of  Ohio,  known  as  H.  R.  3212,  designated  as  a  bill  "to  secure  a  better 
foreign  ma<rket  for  grain  and  the  products  of  grain  and  other  agricult- 
ural products  of  the  United  States,  and  for  other  purposes,"  referred  the 
question  to  a  special  committee,  whose  report  was  submitted  to  the  board 
of  directors  on  March  3,  and  unanimously  adopted.  The  report  is  here- 
with submitted,  omitting  the  introductory  reference  to  the  specific  pro- 
visions of  the  bill  in  detail.  In  accordance  with  the  actioti  of  the  board 
of  directors,  you  are  respectfully  invited  to  favorably  consider  the  ques- 
tions thus  presented. 

Very  respectfully,  Maurice  J.  Freiberg, 

President. 

Hon.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


ACTION  OF  THE   CINCINNATI  CHAMBER  OF  COMMERCE. 


Were  the  Chamber  of  Commerce  to  act  a«  requested,  in  indorsing  the 
provisions  of  the  bill  mentioned  (H.  R.  3212),  it  would  mean  an  unequiv- 
ocal indorsement  of  the  i)rinciple  of  retaliation  in  international  commer- 
cial intercourse,  a  priiicijjle  which  has  many  adherents,  but  which  is 
believed  to  be  of  questionable  policy,  suscei)tible  of  being  regarded  as 
lacking  that  sense  of  dignity  which  a  great  government  should  at  all 
times  maintain  in  its  relations  to  other  countries.  Therefore,  in  the 
opinion  of  your  committee,  it  would  not  be  wise  to  indorse  the  measure 
under  consideration.  Your  committee,  however,  ofler  the  following  as 
an  expression  ui)on  the  subject  entertained: 

Whereas  the  princii)le  of  recii)rocity  between  countries  having  ex- 
changeable products  is  commendable  in  the  highest  degree,  and  should 
be  fostered  to  the  end  of  promoting  the  interests  of  all  concerned: 
Therefore, 

Resolved,  That  it  is  the  manifest  obligation  of  the  Government  of  the 
United  States,  whenever  it  is  shown  that  any  foreign  country  imposes 
an  unequal,  unreasonable,  or  discriminating  duty  or  ])olicy  witli  refer- 
ence to  the  products  of  the  United  States,  to  vigorously  pursue  an  effort 
to  secure  through  honorable  means  a  proi>er  understanding  upon  such 
questions,  by  which  the  products  of  the  United  States  sluill  be  allowed 
to  enter  such  country  without  discrimination  and  upon  a  truly  reciprocal 
basis. 

Resolved,  That  this  action  by  the  Cincinnati  Chamber  of  Commerce 
be  communicated  to  the  members  of  both  Houses  of  Congress,  and  that 
they  are  herc^by  memorialized  to  give  due  consideration  to  the  impor- 
tance of  the  questions  involved  in  their  bearing  upon  the  maintenance 
and  growth  of  the  export  trade  for  the  products  of  the  United  States 
aud  the  industrial  iuteresta  of  our  country. 

.^ C.  B.  Murray, 

J.  PiRKER  Gale, 

F.  W.  FOULDS, 

Committee. 


RECIPROCITY    STATEMENTS. 


151 


896. 
en  re- 

Kerr, 
better 
ricult- 
ed  the 

board 
s  here- 
ic  pro- 
s  board 
e  ques- 


dent, 
'reaties. 


sing  the 
nequiv- 
ionimer- 
^hich  is 
rded  as 
d  at  all 
1,  in  the 
neasure 
wing  as 

ing  ex- 

shonUl 

CO 


SiotuK  City  Commercial  Association. 

Sioux  City,  Iowa,  March  16, 1896. 

Sir:  Yonr  circular  of  the  4th  instant  is  at  hand.  So  far  as  it  has 
been  possible  to  ascertain  the  sentiment  of  members  of  this  association 
on  the  subject  of  your  inquiry  it  is  generally  as  follows: 

First.  The  reciprocity  arrangements  negotiated  by  the  Government 
under  act  of  1890  apparently  had  a  stimulating  effect  upon  our  com- 
merce along  many  lines,  and  particularly  with  those  South  American 
countries  that  accepted  the  theory  and  assisted  in  carrying  out  the 
idea. 

Second.  The  repeal  of  the  reciprocity  feature  in  the  act  of  1894  has, 
in  the  judgment  of  many  business  men  of  the  country,  been  damaging. 
The  reciprocity  clause  was  the  expression  of  a  desire  on  the  part  of  the 
United  States  to  sustain  more  intimate  business  relations  with  other 
countries,  and  its  repeal  is  subject  to  the  interpretation  of  a  desire  for 
isolation. 

Third.  It  would  certainly  seem  advisable  for  this  country  to  do  every- 
thing in  its  power  to  strengthen  commerci^.l  relations  with  all  countries 
and  to  facilitate  by  judicious  legisl-vcion  the  interchange  of  products. 
It  is  probable  that  the  power  to  ent  sr  into  reciprocal  treaties  should  be 
vested  in  the  President  under  such  general  directions  as  the  Congress 
may  deem  wise. 

Fourth.  It  is  quite  difficult  to  say  just  what  diplomatic  negotiations 
may  accomplish  in  extending  our  export  trade.  Much  has  been  done 
in  the  past,  and  without  doubt,  if  the  authority  is  given  them  and  the 
obligation  to  act  is  nuido  incumbent,  our  ministers  and  consuls  could  do 
much  to  aid  in  this  extension.  We  should  be  able  to  send  our  meats 
and  breadstuff's  into  all  countries  which  do  not  produce  them  as  cheaply 
as  we  do,  and  it  would  seem  ttiat  through  the  Department  of  the  Secre- 
tary of  State  much  might  be  done  to  forward  this  important  work. 
Yours,  very  truly, 

Jas.  V.  Mahoney,  Commissioner. 
A.  W.  Erwin,  President. 

Hon.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


rned ; 


it  of  the 
mposes 
1  refer- 
in  effort 
on  such 
allowed 
ciprocal 

immcrce 
nd  that 
■  impor- 
tenance 

I  States 


mttee. 


The  Millers^  National  Association  of  the  United  States. 

MILWAUKEE,  Wis.,  March  16, 1896. 

Sir:  In  reply  to  your  communication  of  the  4th  instant,  beg  to  say 
the  nicmbersiiip  of  the  Millers'  National  Association  are  unanimous 
in  their  earnest  desire  for  national  legislation  which  may  establisii 
reciprocity  relations  with  foreign  countries. 

In  reply  to  the  several  questions  which  you  ask,  I  will  respond 
directly  and  biietly: 

First.  The  effect  of  the  reciprocity  arrangements  with  certain  foreign 
nations,  under  authority  of  the  tariff"  act  of  1890,  proved  higlily  favor- 
able, as  is  sho»vn  by  the  statistics  bearing  upon  this  subject,  which  liavo 
already  been  placed  before  your  committee.  The  exports  of  American 
hrcadstuft's  to  South  American  countries  \nioY  to  the  enactment  of  that 
law  were,  in  1885,  reported  as  $10,399,L'90.  In  1891  an  increase  was 
shown  of  f4,071,42.")  for  that  one  year. 

Second.  The  repeal  of  that  act  by  the  tariff'  of  1894  proved  a  serious 


a 


152 


RECIPROCITY   STATEMENTS. 


setback  for  this  trade,  as  is  demonstrated,  luco,  by  statistics.  Tlie 
exports  of  our  flour  alone  to  South  Anierican  countries,  which  showed  a 
gradual  increase  from  1891  to  1804  from  $2,250,  <.5G  to  $3,253,176, dropped 
off  in  one  year  (from  181)4  to  1895)  to  $2,726,558. 

Third.  It  is  the  lirm  and  unanimous  conviction  of  all  flour  manufac- 
turers in  this  (!Ountry  that  the  restoration  of  the  reciprocity  principle  to 
future  tariff  legislation  is  not  only  expedient  and  advisable,  but  that 
it  is  an  absolute  necessity  to  the  future  i)rosperity  of  flour  milling  in 
the  United  States — an  industry  representing  an  investment  of  over 
$200,000,000  and  giving  employment  to  thousands  of  men. 

The  milling  capacity  of  this  country  has  been  gradually  increasing  to 
a  point  so  far  in  excess  of  the  requirements  for  home  consumption  of  our 
product,  and  by  virtue  of  the  promising  conditions  existing  until  the 
tariff"  legislation  of  1894,  that  an  outlet  in  the  way  of  a  strong  export 
trade  is  now  an  absolute  necessity.  If  such  outlet  is  hampered  or  made 
impossible,  disaster  and  failure  must  result,  and  our  milling  plants 
must  continue  to  close  down  and  go  out  of  business. 

Fourth.  We  are  convinced  that  through  diplomatic  negotiations  re- 
ciprocal relations  existing  under  the  tariff  legislation  of  1890  can  be 
restored,  and,  if  restored,  we  believe  that  we  may  regain  the  exi)ort 
trade  which  former  experience  has  taught  us  may  be  obtained  and 
cultivated.  We  are  sustained  in  this  belief  by  assurances  received 
from  foreign  countries  that  they  will  gladly  purcliase  our  flour,  provided 
tariff  conditions  will  permit  them  to  do  so. 
Respectfully, 

Frank  Barry,  Secretary, 

Hon.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


Michigan  State  Millers'  Association. 

Lansing,  Mich.,  March  20, 1896. 

Dear  Sir:  The  executive  committee  of  this  association  has  the 
honor  of  submitting  to  you  the  following  facts: 

Believing  that  reciprocal  trade  relations  between  the  United  States 
and  the  several  European  and  South  American  countries  are  just  and 
equitable  and  greatly  to  the  benefit  of  the  flouring  industry  of  this 
country,  the  millers  of  Michigan,  almof^t  to  a  man,  favor  the  so-called 
policy  of  reciprocity. 

In  behalf  of  these  manufacturers,  this  executive  committee  petitions 
your  honorable  body,  the  House  of  Representatives,  to  pass  the  Kerr 
bill  or  some  other  effective  reciprocity  measure. 

For  the  executive  committee: 

J.  J.  HANsnuB,  Secretary. 

Hon.  Albert  J.  Hopkins,  M.  C, 

Washington,  D.  0* 


The  Manufacturers'  Association  of  Kings  and  Queens  Counties. 

Brooklyn,  N.  T.,  March  18, 1896. 
Dear  Sir:  This  association  begs  to  acknowledge  the  receipt  of  your 
circular  letter  under  date  of  4th  instant,  and  in  reply  thereto  it  wishes 


RECIPROCITY    STATEMENTS. 


153 


to  be  placed  on  record  in  favor  of  the  reestablisliraent  of  treaties  of  reci- 
procity, giving  as  its  reasons  therefor  the  past  history  of  our  country 
and  its  present  requirements. 

Very  truly  yours,  James  T.  Moile, 

ISvcrctarij. 
Hon.  Albert  J.  Hopkins, 

Chairman  Subcommittee  on  R€ci])rocity  and  Commercial  Treaties. 


The  Young  Men''8  Business  League. 

Meridian,  Miss.,  March  30, 1896. 

Dear  Sir:  Replying  to  your  letter  of  March  4,  we  beg  to  say  we 
have  talked  with  the  leading  uienibers  of  our  organization  and  find 
them  of  the  opinion: 

P'irst.  The  elloct  of  the  recii)rocity  arrangements  negotiated  by  the 
Government  with  certain  fon^ign  nations  under  the  authority  of  the 
tariff  act  of  1890  was  favorable  to  the  foreign  commerce  of  the  United 
States. 

Second.  The  effect  of  their  repeal  by  the  act  of  1894  was  disastrous 
to  the  United  States. 

Third.  We  believe  it  exi)edient  and  advisable  to  apply  the  reciproc- 
ity principle  to  future  tariff  legislation,  and  to  enact  a  general  law 
authorizing  the  President  to  negotiate  reciprocity  treaties  with  foreign 
nations  as  far  as  ])racticable. 

Fourth.  We  believe  that  foreign  nations  give  a  bounty  to  sugar  pro- 
ducers; that  the  tarifl'  duties  on  sugars  from  such  countries  should  be 
increased  by  our  country. 

Yours,  very  respectfully,  0.  W.  EoBiNSON, 

President. 

Mr.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


es. 

1896. 

of  your 
wishes 


Crystal  Falls  {Mich.)  Business  Men's  Association. 

Crystal  Falls,  Mich.,  March  30, 1896. 

Dear  Sir  :  The  Business  Men's  Association  of  Michigan  most  respect- 
fully submit  their  answers  to  the  subjoined  questions  as  follows: 

First.  Was  the  eftect  of  the  reciprocity  arrangements  negotiated  by 
the  Government  with  certain  foreign  nations  under  tho  authority  of 
the  tariff  act  of  1890  favorable  or  unfavorable  to  the  foreign  commerce 
of  the  United  States? 

It  was  most  favorable. 

Second.  What  was  the  effect  of  their  repeal  by  the  tariff  act  of  1894? 

Disastrous  and  ruinous. 

Third.  Is  it  exi)edient  and  advisable  to  apply  the  reciprocity  principle 
to  future  tariff"  legistation  and  to  enact  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  foreign  nations,  so  far 
as  possible? 

Most  assuredly  it  is. 


Ill 


-«H 


ii-- 


154 


BECIPROCITY    STATEMENTS. 


What  can  be  accomplished  by  diplomatic  negotiation  in  extending 
the  export  trade  of  the  United  States? 

It  might  gain  great  prosperity  to  the  United  States  by  arranging 
reciprocity  treaties. 

Very  respectfully,  A.  Lustfield, 

ScctGtary, 
Hon.  A.  J.  Hopkins, 

Washinyton,  D.  0,  ' 


N^orthampton  Board  of  Trade, 

Northampton,  Mass.,  March  21, 1896. 

At  a  meeting  of  the  Northampton  Board  of  Trade  held  to-day,  the 
foregoing  communication  having  been  placed  before  it,  it  was  unani- 
mously resolved — 

First.  We  believe  that  the  reciprocity  arrangements  made  by  virtue 
of  the  authority  of  tlie  tariff  act  of  1890  were  favorable  to  the  foreign 
commerce  of  the  United  States  and  that  their  repeal  by  the  act  of  1804 
was  injurious. 

Second.  We  believe  that  it  is  expedient  and  advisable  to  apply  the 
reciprocity  principle  to  future  tariff  legislation  and  to  enact  a  general 
law  authorizing  the  President  to  negotiate  reciprocity  treaties  with 
foreign  nations  so  far  as  possible. 

Third.  We  believe  that  a  carefully  selected  and  trained  diplomatic 
and  consular  force  can  do  a  great  deal  toward  extending  our  foreign 
commerce, 

attest:  J.  Aethue  Wain  WEIGHT, 

Secretary. 


The  National  Live  Stock  Exchange. 

March  25,1896. 

Dear  Sir  :  I  beg  leave  to  inform  you  that  I  presented  your  favor  of 
the  4th  instant,  regarding  reciprocity,  to  the  executive  committee  of  this 
exchange  for  their  consideration,  and  they  now  direct  me  to  make  the 
following  answers  to  the  questions  submitted : 

First.  The  effect  of  the  reciprocity  act  of  1890  was  very  favorable  to 
the  foreign  commerce  of  the  United  States.  Whether  or  not  the  tariff' 
act  connected  with  it  at  that  time  was  any  particular  beneflt  is  a 
question. 

Second.  The  repeal  act  of  1894  had  a  demoralizing  effect  on  our  live 
stock  and  meat  products  in  (,'ertain  foreign  countries,  excluding  entirely 
the  importation  into  those  countries  of  this  class  of  commerce. 

Third.  Would  think  it  advisable  to  separate  reciprocity  from  tariff" 
legislation  and  enact  reciprocity  irrespective  of  any  tariff  legislation. 
Would  advocate  the  enactment  of  a  general  law  authorizing  tlie  Presi- 
dent to  negotiate  reciprocity  treaties  with  foreign  nations. 

Fourth.  As  we  understand  the  diplomatic  system  anu  under  existing 
cir(!umstance8  do  not  see  where  anything  can  be  accomplished,  but  with 
reciprocity  laws  in  force,  as  hereinbefore  indicated,  latitude  would  be 
afforded  the  Executive  and  our  foreign  diplonmtic  cori)s  to  negotiate  a 
system  of  reciprocal  treaties,  which  would  place  our  foreign  commercial 
interests  on  a  par  with,  if  not  greater  than,  that  of  any  foreign  country. 


RECIPROCITY    STATEMENTS. 


155 


Eeciprocity  is  always  favorable  to  promotion  of  tlio  foreiprn  commerce 
of  the  United  States,  and  from  our  standpoint  is  the  kind  of  legislation 
needed  to  increase  our  foreign  commercial  relations,  and  the  legislator 
who  advocates  reciprocity  is  entitled  to  all  the  public  honors  that  can 
be  bestowed  by  the  producers  throughout  the  United  States. 
Very  respectfully, 

0.  W.  Bakee,  Secretary. 
Hon.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Reeiproeity  and  Commercial  Treaties. 


8t.  Louis  Live  StocJc  Exchange. 

MARcn  27, 1896. 

Dear  Sir:  Tour  circular  letter  of  the  4th  instant,  addressed  to  me 
as  president  of  the  St.  Louis  Live  Stock  Exchange,  was  duly  received 
and  submitted  to  our  directory,  who  direct  me  to  re])ly  to  same,  as 
follows : 

Inasmuch  as  our  organization  has  for  its  sole  purpose  the  fostering 
and  advancement  of  the  great  live  stock  industry  of  the  United  States, 
we  do  not  deem  it  proper  or  expedient  for  us  to  enter  into  a  diiscussion 
of  the  general  policy  of  reciprocity,  except  so  far  as  it  aft'ects  the 
interests  we  represent. 

1.  We  believe  that  the  reciprocal  trade  arrangements  entered  into  by 
our  Government  with  the  countries  of  continental  Eurojie  under  and 
by  authority  of  the  so  called  McKinley  bill,  enacted  in  l.S'JO,  aided  very 
materially  in  extending  and  enlarging  the  markets  for  our  surplus  live 
cattle  and  meat  jn'oducts,  and  contributed  in  no  small  degree  to  the 
improvement  of  the  great  live  stock  industry  of  our  country. 

2.  The  eflect  of  tlio  repeal  of  the  tariff  act  of  I'^OO,  with  its  provisions 
for  reciprocity,  bythetarift  act  of  1894 — the  Gorman- Wilson  bill — has, 
in  our  Judgment,  absolutely  deprived  the  fanners  and  stock  raisers  of 
this  country  of  any  foreign  market  for  live  cattle  or  meat  products  in 
continental  Europe. 

It  is  true  Germany,  France,  Belgium,  and  Switzerland  have  not 
admitted  that  their  action  in  prohibiting  importation  of  our  live  stock 
and  meats  was  induced  by  the  abrogation  of  reciprocal  arrangements, 
but  the  fact  remains  that  following  the  repeal  of  reciprocity  pro- 
hibitive regulations  were  by  them  i)romptly  and  vigorously  enforced, 
and  the  reasons  given — viz,  unhealthy  and  diseased  condition  of  our 
cattle  and  meat  jnoducts — are  notoriously  untrue  and  cai)able  of  easy 
refutation.  Under  the  operation  of  reciprocity  our  exports  of  live  cattle 
and  dressed  beef  averaged  about  25,000  head  per  week  to  l^higland  and 
continental  Europe,  while  quickly  following  the  rei»eal  of  reciprocity 
and  the  clo^^ing  of  markets  of  Europe,  with  the  single  exception  of 
Great  Britain,  our  exports  declined  to  about  8,000  head  per  week. 

3.  If  by  vesting  in  the  President  of  the  United  States  the  authority 
to  negotiate  reciprocity  treaties  with  foreign  nations  the  stock  raisers 
of  this  country  can  have  restored  to  them,  in  whole  or  part,  the  markets 
from  which  they  have  been  excluded  andean  have  other  markets  opened 
to  them,  we  say,  "By  all  means  give  the  President  this  power." 

4.  Diplomatic  agents  of  this  Government  should  be  able  to  do  much 
to  extend  our  foreign  trade,  particularly  our  consuls,  but  we  believe 
greater  care  should  beexeniised  in  the  selection  of  our  consular  agents. 
They  should  be  chosen  by  reason  of  tbdr  fitness  for  the  position  tliey 


•I  -il 


156 


RECIPROCITY    STATEMENTS. 


■'! 


are  to  fill ;  their  pay  sliould  be  sufflcient  to  attract  young  men  of  brains 
and  ambition,  and  tlieir  tenure  of  office  sliould  depend  solely  on  the 
degree  of  efficiency  with  which  they  perform  their  duties. 

We  sincerely  trust  that  the  intelligence  and  patriotism  of  our  Sena- 
tors and  Representatives  in  Congress  may  liud  their  i)r()per  expression 
in  the  prompt  enactment  of  laws  for  the  relief  of  the  business  interests 
of  the  country. 

Yours,  very  truly,  W.  B.  Stiokney,  President, 


Committee  on  Industrial  Extension,  Orwigshurfj,  Pa. 

March  23, 1806. 

Sir  :  Answering  your  circular  letter  of  inquiry  of  date  the  4th  instant, 
our  committee  asks  me  to  say: 

1.  Judging  by  comparison,  the  effect  of  the  reciprocity  arrangements 
negotiated  under  the  tariff  act  of  1890  was  more  than  si'nply  favorable 
to  the  foreign  commerce  of  the  United  States. 

It  is  submitted  that  the  wisdom  which  suggested,  and  as  far  as  then 
possible  procured,  the  reciprocity  arrangements  of  1800-04  was  worthy 
of  true  American  prevision,  and  the  infant  attempts  already  pi  esaged  the 
healthy  possibilities  of  a  purely  American  commercial  enterprise. 

2.  The  repeal  of  the  reciproc'^y  arrangements  by  the  tariff  act  of 
1894  had  a  most  generally  depressing  effect  de  facto,  and  the  abandon- 
ment thereby  of  all  present  hope  of  the  extension  of  these  beneficial 
negotiations  was  so  palpably  a  great  blunder  that  years  of  prosperity 
will  be  required,  even  under  renewed  reciprocity  acts,  to  restore  the 
shattered  nerves  of  American  commercial  advancement. 

3.  [It  is  hard  to  conceive  how  anyone  interested  in  the  healthy  exten- 
sion of  the  commercial  advantages  of  our  country  or  the  prosperity  of 
American  industry  can  answer  your  third  inquiry  except  with  a  most 
positive  a[)peal  thfit  all  party  prejudices  may  on  this  great  (jnestion  be 
at  once  laid  aside  and  make  way  for  the  commercially  and  industrially 
sound  principle  of  reciprocity,  fairly  guarded  by  the  special  needs  of 
developing  industries,  in  all  future  tariff  legislation,  and  though  legis- 
lators be  more  apt  to  dictate  the  generality  of  delegated  autliority  in 
the  premises,  no  tariff  law  should  be  enacted,  whether  for  revenue  oidy, 
or  for  revenue  with  incidental  i)rotection,  that  did  not  carry  with  it  the 
plenary  auth(*rity  or  direction  to  the  Executive  to  negotiate  the  most 
advantageous  reciprocity  possible  with  all  the  foreign  nations  possible, 
but  especially  with  the  nations  to  the  south  of  us.] 

We  pennit  ourselves  to  append  here  that  to  the  attainment  of  the 
best  possible  facilities  in  this  direction  it  were  well  to  call  tlie  atten- 
tion of  the  proper  parties  to  the  necessity  for  extended  banking  and 
exchange,  as  well  as  shipping  facilities.  But  give  us  the  commerce  and 
the  accessories  will  come. 

4.  It  is  submitted  that  if  it  were  possible  for  the  diplomatic  service  of 
our  country  to  be  utilized  for  a  diplomatically  aggressive  policy  in  favor 
of  American  conunercial  reciprocity,  the  accomplishment  of  much  great 
good  could  be  attained;  and,  this  policy  once  so  aggressively  continued, 
our  America  could  begin  to  unloose  her  prcvsent  swaddling-clothes 
I)olicy  of  subserviency  to  take  percei)tible  strides  to  her  proper  and 
relatively  dominant  commercial  station.  .       _ 

Very  respectiuuy,  yours,  H.  A.  Weller, 

Secretary. 
Hon.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


RECIPROCITY    STATEMENTS. 


Ul 


Associated  Manii/acturcrSf  Nvw  YorJc^  N.  T. 

Ma  urn  21,  189(5.  ' 

Tin's  is  an  association  of  manufacturers  of  ajiricultuiiil  machinery, 
orpuii/ed  espetiiully  for  tlic  conductinff  and  devclojiinji;  of  foreign  trade. 

2.  Class  ol  goods,  agri(;nltural  and  farm  machinery. 

3.  We  have  dealings  with  every  country  where  agriculture  is  carried 
on  to  an  extent  that  implements  of  any  kind  are  used.  There  is  no  trade 
in  Japan  or  China  for  our  line  of  goods  that  we  have  ever  fou-id. 

4.  We  have  made  considerable  effort  to  extend  our  trade  by  direct 
effoits.  We  have  established  many  local  agencies  with  resident  firms 
in  some  countries,  have  em])loyed  travelers  who  travel  diiect  from  this 
oflice,  and  have  met  with  fair  results  in  most  cases. 

The  countries  that  afford  us  the  best  and  safest  trade  are  as  follows, 
and  their  importJince  is  in  the  order  they  are  given:  Ifussia,  United 
Kingdom,  llonmania.  South  Africa  (including  Transvaal  and  liritish 
possessions),  Argentine  Kepublic,  France,  (Jermany,  Anstraliau  Colo- 
nies, Chile,  Denmark,  Italy,  Austria  Hungary,  Orient  (Turkey,  Asia 
Minor,  and  Egypt). 

The  trade  in  the  other  countries  is  scattered  and  general.  Spain  and 
Portugal  a  few  years  ago  took  our  goods  to  a  small  extent,  but  their  trade 
has  been  practically  nil  for  the  last  two  years. 

5.  This  is  a  broad  questicm.  We  have  found  many  obstacles  that  not 
only  restricts  but  obstructs  our  trade.  To  enumerate  all  of  them  would 
make  this  report  a  tedi(ms  one  to  you,  so  I  will  mention  a  few  only. 

Austria. — The  laws  of  this  country  are  such  that  dealers  who  handle 
goods  made  in  any  country,  excepting  those  having  sjiecial  treaty,  are 
deprived  of  certain  concessions  of  taxes,  trade  privileges,  and  other  val- 
uable concessions,  which  are  so  valuable  that  they  can  not  afford  to 
handle  any  goods  coming  from  any  but  the  treaty-favored  countries. 
Foreigners  wlio  wish  to  establish  a  branch  house  in  Austria  or  Hungary, 
unless  they  were  established  before  the  present  law  was  enacted,  are 
deprived  of  many  valuable  concessions  granted  to  merchants  of  their 
own  country,  and  have  in  addition  to  pay  heavy  license  fees.  I  think 
the  law  is  that  th'^y  pay  double  what  citizens  of  their  own  country  do  for 
like  business.  Another  serious  obstacle  here  is  that  their  laws  permit 
the  importation  and  manufacture  of  goods  bearing  the  trademarks, 
name,  and  all  of  American  goods,  and  manufactures  from  any  other 
country,  and  their  sale  as  the  real  American  article.  Their  own  manu- 
facturers practice  this  deception. 

France. — They  also  allow  the  importation  of  goods  n»ade,  say  in  Ger- 
many, bearing  the  American  trademark  and  manufacturer's  name,  and 
their  sale  as  American-made  goods. 

Kussisi,  Germany,  EonInan^a,  Italy,  Argentina,  Brazil,  Chile,  Peru, 
and  the  Transvaal  permit  tliit  ,  and  as  a  result  our  goods  are  manufac- 
tured in  other  countwes,  imjMjrted  into  these,  and  sold  as  American 
goods,  thereby  greatly  injuring  the  reputation  of  American  goods  and 
trade.  This  is  felt  by  us  more  severely  in  France  and  Russia  than  any- 
where else. 

There  is  no  subject  at  the  present  time  that  is  causing  the  American 
manufacturers  more  annoyance  or  loss  than  this  one,  and  it  seems  to 
us  to  be  of  sufficient  importance  to  be  the  subject  of  diplomatic  action 
and  treaty  between  the  countries  named  and  ours. 

If  French  wines  and  Russian  wools  were  restricted  in  entering  this 
country,  unless  they  enacted  and  enforced  a  law  similar  to  our  own  pre- 
venting im])ortation  of  goods  without  country  of  origin  being  declared, 
I  think  it  would  soon  remedy  the  cause  complainea  ot. 


158 


RECIPROCITY    STATEMENTS. 


6.  France  in  1892  passed  a  tariff  law  imposing  a  maxinium  duty  on 
goods  imported  from  countries  having  no  (commercial  treaty,  and  a 
minimum  tariff"  on  goods  imported  iVom  those  having  sucli  treaty;  tlie 
result  is  our  goods  pay  about  30  per  cent  more  duty  than  tlie  same 
class  of  goods  from  England  and  Germany. 

France  also  imiwses  a  differential  duty  on  all  goods  imported  in  any- 
thing but  French  ships,  or  in  ships  that  touch  any  port  between  tliis 
country  and  France,  thus  attempting  to  force  us  to  pay  $0  per  ton  for 
freight  to  Havre  by  French  lines,  while  we  sliip  the  same  freight  by 
American  ships  to  Havre  for  $3  per  ton.  This  restriction  gives  Eng- 
land and  Germany  the  advantage,  as  they  have  no  ocean  to  traverse  in 
reaching  the  markets  of  France.  This  should  be  remedied  by  treaty  or 
by  changing  our  tariff'  laws,  imposing  the  same  restrictions. 

7.  Judging  from  tlie  conversations  I  have  had  at  various  times  with 
gentlemen  high  in  Uussian  official  life,  1  believe  if  an  earnest  effort 
were  made  a  treaty  could  be  arranged  by  which  they  would  admit 
many  of  our  goods,  such  as  agricultural  im])lements,  vehicles,  hard- 
ware, calicoes,  woolens,  shoes,  etc.,  at  a  reduced  tariff',  by  our  taking 
tlieir  wools,  hides,  and  beet  sugar  at  a  differential  tariff.  This  would, 
I  think,  increase  our  trade  in  Russia  at  least  one-third. 

In  France,  if  we  were  put  on  equal  footing  with  other  nations,  I  think 
that  our  trade  would  increase  one-half,  as  it  fell  off'  nearly  this  when 
the  present  law  went  into  etfect. 

As  to  the  etfoct  of  a  general  reduction  of  tariff's  in  foreign  countries, 
I  do  not  see  as  it  would  benefit  us  so  very  much,  except  in  a  tew 
countries,  say  liussia,  Germany,  France,  and  Australian  (^oloines. 
These  countries  are  manufacturing  some  goods  in  our  line  of  the  lower 
classes.  Possibly  if  their  tariff's  were  lowered  we  would  get  some  trade 
on  this  class  of  goods.  If  reciprocal  treaties  were  made  by  wliich  our 
goods  were  admitted  at  a  lower  tariff"  than  those  of  other  countries, 
this  would  be  of  great  benefit. 

8.  As  this  association  was  started  six  years  ago,  we  can  not  make 
comparison,  as  a  whole,  but  the  writer  was  connected  with  tlie  trade 
prior  to  that  time  and  tl  ks  that  as  a  whole  the  exportation  of  our 
class  of  goods  has  increased  30  per  cent  since  18J)0, 

9.  Our  selling  prices  for  foreign  trade  have  fallen  about  10  i)or 
cent,  as  an  average,  within  the  last  six  years.  We  have  not  changed 
foreign  prices  as  much  as  we  have  domestic,  and  we  get  fully  20  per 
cent  more  for  our  goods  shipped  to  foreign  (countries  than  we  do  for 
same  goods  in  this  country,  sell  for  nearer  cash,  and  consider  the  trade 
in  every  way  as  desirable  on  the  average  as  that  in  this  country  at 
this  time. 

10.  Foreign  competitors  have  an  advantage  in  wages  alone  of  fully 
20  per  cent  in  cost  of  goods,  but  we  meet  this  by  using  our  improved 
appliances.  Foreign  competitors  have  every  advantage  of  us  in  trans- 
portation, not  only  in  freight  rates,  but  in  fre(iUent  and  quick  commu- 
nication. 

We  are  placed  at  a  great  disadvantage  by  reason  of  delays  imi)osed 
upon  us  when  shipping,  in  foreign  bottoms,  via  European  ports;  in  fact, 
our  hands  are  so  tied  from  this  cause  that  it  is  a  wonder  we  liave  any 
foreign  trade. 

It  is  my  opinion  that  if  we  were  assisted  by  our  Government  to  estab- 
lish steam  lines  to  correspond  with  those  of  other  nations  that  our 
foreign  trade  would  double  in  a  few  years,  and  could  be  secured  with 
25  per  cent  less  expense  for  travelers,  etc. 

11.  We  can  compete  with  all  comers,  from  all  countries,  not  in  price. 


RECIPROCITY    STATEMENTS. 


151) 


ity  on 

and  a 

r,  the 

same 

II  any- 
n  tliii4 
;oii  for 
flit  by 
i  Eiiff- 
pi'se  in 
jaty  or 

)8  with 
;  effort 
admit 
,  li aid- 
taking 
would, 

I  think 
8  wheu 

Liutries, 
1  a  tew 
olonies. 
le  lower 
le  trade 
icli  our 
un  tries, 

t  make 

|c  trade 

of  our 

10  per 
|hanj;t'd 

20  per 
do  for 
ke  trade 
[iitry  at 

)f  fully 

^proved 

trans- 

3ommu- 

lu)  posed 
Tin  fact, 
live  any 

1  estab- 
lat  our 
}d  with 

price. 


but  in  quality  nnd  merit,  which  have  become  reco{jui/od  the  world 
over,  and  American  manufactures  are  rai)i<lly  securing  the  command  of 
the  markets  of  the  world  in  our  department  of  trade. 

12.  The  reciprocity  treaties  were  a  jjreat  assistance  to  us,  and  when 
repealed  did  our  trade  {jreat  damage  in  all  countries  affected. 

13.  1  answer  both  questions,  "Yes,"  most  emphatically. 


Board  of  Trade,  Gainesville,  Fla. 

March  23,  ISOG. 
Pear   Sir:  Replying  to  your  (!omniuni(!ation  attaidied,  we  desire  to 
reply  as  follows: 

1.  Favorable. 

2.  We  felt  that  the  business  of  the  country  was  being  ciniiimscribed 
or  reduced  from  wiiat  it  had  been  under  reciprocity. 

3.  It  is. 

4.  Diplomacy  "  be  blowed."    Dig  the  Nicaragua  (Janal,  and  give  us 
free  ships. 

Very  respectfully,  '        JAS,  O.  Andrews,  (Secretary. 


Pater  Hon  {W.  J.)  Board  of  Trade. 

March  24,  ISOG. 

Sir:  In  response  to  your  inquiry  of  March  4,  the  following  minute 
on  reciprocity  and  commercial  treaties  has  been  adopted  by  the 
Paterson  Board  of  Trade : 

1.  We  believe  in  recii)rocity  as  entered  into  with  certain  foreign 
n.ations  under  the  tariff'  act  of  1890.  The  principles  lying  at  the 
foundation  of  this  act,  whereby  there  can  be  a  larger  intercliange  of 
commodities  through  more  favorable  conditions  to  ourselves,  call  for 
approval  by  those  who  desire  to  see  a  larger  Held  opened  for  our  com- 
modities. 

2.  We  believe  that  the  repeal  of  these  arrangements  worked  an  injury 
to  the  country. 

3.  We  consider  it  is  to  the  interest  of  our  people  to  apply  the  reci- 
procity principle  to  future  tariff'  legislation. 

4.  In  our  opinion,  by  means  of  diplomatic  negotiations,  treaties  may 
be  arranged  with  many  foreign  nations,  whereby  such  products  of  those 
nations  as  compete  very  little  or  not  at  all  with  American  products, 
and  are  largely  consumed  in  this  country,  sball  be  imported  by  us  free 
of  duty,  in  return  for  like  concessions  from  those  nations,  by  means  of 
which  the  excess  of  production  of  American  industries  may  find  a 
profitable  market. 

I  am,  sir,  by  order  of  the  Paterson  Board  of  Trade,  your  obedient 
servant, 

W.  G.  Scott,  Secretary. 


Resolutions  by  the  legislature  of  New  Yorlc. 

Resolved,  That  the  inevitable  destiny  of  the  United  States  urgently 
demands  that  the  Government  of  the  United  States  shall  at  once  inaug- 
urate a  foreign  and  domestic  i)olicy  as  follows: 

1.  The  immediate  construction  of  coast  (lefenses  upon  the  Atlantic 
and  Pacitic  seaboards,  and  also  upon  the  Great  Lakes. 


i<\\ 


160 


RECIPROCITY    STATEMENTS. 


2.  The  building  of  a  navy  wliicli  will  make  the  United  States  a  flrst- 
c^       power,  and  not  sixth  class  among  the  nations  of  the  world. 

o.  An  alliance  with  Mexico  and  the  States  of  Central  and  South 
America,  offensive  and  defensive. 

4.  Closer  commercial  relations  with  the  Eepublics  of  Mexico,  Central 
and  South  America,  and  to  that  end  that  at  the  coming  Congress  of 
the  States  of  South  and  Central  America  the  United  States  shall  foster 
the  building  of  a  railroad  from  Vera  Cruz,  Mexico,  through  Central  and 
South  America,  upon  a  just  and  equitable  basis  as  to  governmental  aid 
and  support  and  control  by  the  several  Dowers  concerned,  to  the  end 
that  the  said  rei)ublics  shall  be  indissolubly  coiinected  with  the  Uuited 
States,  as  of  nf»ht  they  ought  to  be. 

5.  National  aid  to  the  Nicaragua  Canal,  in  order  that  the  said  canal 
shall  be  budt  and  controlled  by  Americans  in  the  interest  of  American 
trade  and  commerce. 

6.  The  acquisition  of  Cuba  by  the  United  States,  preferably  by  pur- 
chase. 

Resolved,  That  copies  of  these  resolutions  be  forwarded  to  the  Congress 
and  the  President  of  the  United  States. 


Wholesale  Grocers^  Association  of  Kew  York  and  vicinity. 

March  23, 1896. 

Dear  Sir  :  My  deliberate  conviction  is  that  what  the  merchants  and, 
indeed,  uii  the  people  want  is  a  complete  rest  from  tariff' changes  and 
from  all  tariff"  agitation. 

If  the  (loverninent  needs  increased  reveiiue,and  it  can  not  be  obtained 
from  internal  sources,  then  Congress  would  be  justified  in  increasing 
the  duty  on  the  fewest  possible  articles,  and  on  those  that  can  best  bear 
the  burden. 

If  there  should  be  a  surplus  of  revenue,  then  Congress  would  be  justi- 
fied in  milking  a  reduction  in  the  same  manner;  but  I  believe  that  to 
m.ake  changes  in  our  tariff"  for  political  purposes,  and  to  make  such 
8weei)ing  changes  as  were  made  by  the  INIcKinley  bill  or  by  the  Senate 
bill  is  a  great  hardship  to  the  merchants  and  the  peo])le,  and  partakes 
sonunvhat  of  the  luilure  of  a  crime. 

To  reduce  the  value  of  a  barrel  of  sugar  from  $21  to  $14  at  the  stroke 
of  a  clock  by  removing  the  entire  duty  at  once,  and  then  to  give  the 
grower  a  bounty  of  2  cents  per  ])ound,  and  in  some  two  years  to  impose 
a  new  duty  of  40  per  cent  ad  valorem,  and  then  to  re!n«)ve  the  bounty, 
is  to  do  all  that  Congress  possibly  can  do  to  destroy  a  great  industry, 
iind  to  teach  the  i)eoi)leof  the  great  State  of  Louisiana  that  their  pros- 
perity does  not  de])end  upon  the  productiveness  of  her  soil  or  the 
industry  and  enterprise  of  the  people,  but  upon  Congressional  legisla 
ti(m. 

If  thd  people  were  entitled  to  cheai)er  sugar  and  the  (tovernment 
could  dis])ense  with  the  revenue,  then  a  gradual  yearly  reduction  should 
have  been  n.ade  aiul  the  object  could  have  been  accomplished  and  no 
interest  would  have  suffered. 

I  have  a  large  acquaintamie  with  commercial  men  in  many  cities,  and 
am  satisfied  that  what  the  merchants  and  the  people  of  America  want 
is  perl'cct  rest  from  tariff"  changes,  excepting  for  reasons  above  given. 
Yours,  very  truly, 

G.  WAJ.DO  Smith,  President. 


BECIPROCITY   STATEMENTS. 


161 


stroke 
ive  the 
impose 

>ouuty, 
Idustry, 
lir  pros- 

or  the 
llegishi 

Iniment 

shonhl 

laud  uo 

ies,  and 

I'a  want 

fiven. 

Udent. 


Business  Men's  Association,  Martinsburg,  W.  Va. 

March  26, 1896. 

8m :  W©  have  the  honor  to  acknowledge  the  receipt  of  a  copy  of  the 
circular  letter  issued  by  the  subcoinmitte  of  which  you  are  chairman, 
asking  for  an  exj)ression  of  ojnnion  on  the  working  of  the  so-called 
"Eeciprocity  treaties"  authorized  by  the  third  section  of  the  McKinley 
law.  In  reply  to  your  questions,  in  the  order  in  which  they  are  asked, 
we  beg  leave  to  submit  the  following  views : 

1.  In  our  opinion  the  effect  of  the  actual  working  of  the  reciprocity 
arrangements  negotiated  by  the  Government  was  favorable,  though  far 
less  favorable  than  would  have  resulted  from  treaties  of  larger  scope, 
constructed  along  the  lines  suggested  by  the  Secretary  of  State  t - 
C3ongre8S,  when  the  law  amending  the  tariff  was  under  discussion 
the  Senate.  In  so  far  as  the  so-called  reciprocity  treaties  fell  short  f 
being  what  they  purported  to  be,  they  exerted  a  bad  intiuence,  in  th;  : 
they  brought  discredit  upon  this  as  a  method  of  commercual  reform 
which  it  does  not  deserve,  and  which  will  heighten  the  difficulties  of 
future  attempts  to  broaden  our  trade  relations  in  the  same  way.  If  the 
"Hale  amendment," and  not  the  colorless  "Aldrich  amendment"  could 
have  been  adopted,  we  believe  that  much  more  good  would  have  resulted. 
As  it  was,  the  increase  in  our  exports  during  the  first  fifteen  or  eighteen 
months  under  the  reciprocity  treaties  was  not  greatly  in  excess  of  the 
increased  exports  to  countries  with  which  no  such  reciprocal  relations 
existed;  and  the  increase  in  exports  was  out  of  all  proportion  less  than 
the  concurrent  increase  of  our  importations  from  the  countries  in 
question.  Hence  it  appears  that  the  expected  expansion  of  our  bread- 
stuff market  did  not  take  phice,  certainly  not  to  tlie  exi)ected  extent, 
and  one  is  strongly  inclined  to  think  that  the  narrow  and  ungenerous 
limits  of  the  treaties,  imposed  by  the  "  Aldrich  amendment,"  were,  in 
part  at  least,  responsible. 

2.  It  would  be  dillicult  in  any  short  and  summary  way  to  state  the 
effect  of  the  repeal  of  the  reciprocity  treaties  by  the  tariff  law  of  1894. 
lieports  of  the  Treasury  would,  no  doubt,  show  just  what  the  increase 
or  decrease  in  eveiy  case  is,  and  it  would  be  a  relatively  easy  task  to 
determine  just  how  much  of  this  effect  was  attributable  to  the  repeal  of 
the  reciprocity  arrangements  and  how  much  to  the  enlargement  of  the 
free  lists  and  the  imposition  of  new  schedules  of  duties. 

3.  We  regard  the  Congress  as  the  proper  repository  of  the  tariff' 
h^gislation  of  the  United  States,  and  believe  it  to  be  more  or  less  unwise, 
if  not  dangerous,  to  shift  the  burden  of  such  obligations  to  the  treaty- 
making  branch  of  the  executive  department  of  the  Government  by 
general  law.  Under  the  former  law  the  President  was  arnu'd  with  the 
power  to  emjdmHize  his  unfavorable  opinion  of  the  customs  duties  on 
any  of  these  American  countries  by  imposing  hardships  upon  the  j)eople 
of  the  United  States;  for  the  retaliatory  provisions  of  the  McKinley 
law  meant  nothing  less.  The  power  of  such  a  commercial  embargo  is 
a  very  large  and  insidious  one,  and  we  prefer  to  see  it  lodged  in  Con- 
gress. We  believe,  however,  that  some  foreign  market  should  be  found 
for  the  surplus  American  farm  pnxlucts,  aiul  il'  any  such  policy  as  that 
l)roi)osed  by  Mr.  Blaine  and  embodied  in  the  "Hale  amendment"  to  the 
McKinley  law  is  possible,  we  believe  that,  liberally  administered,  it 
would  tend  to  bring  about  this  result.  If  the  question  of  your  committee 
simply  means,  do  we  favor  the  reenactmentof  the  "Aldrich  amendment," 
as  it  was  finally  adopted,  we  reply  that  we  do  not;  but,  ou  the  other 

H.  Eep.  2263 11 


\v 


162 


RECIPROCITY 


VTEMENT8. 


hand,  would  repjard  such  action  as  unnecessary  since  the  tariff  legisla- 
tion of  181)4,  and  both  narrow  and  unwise  in  principle. 

Witli  regard  to  the  fourth  question  of  your  letter,  we  are  not  prepared 
to  give  any  answer. 

"Very  resi)ectfully,  yours,  N.  D.  Baker,  President. 


The  National  Live-Sfocic  Exchange,  Union  Stock  Yards,  Chicago,  III. 

The  following  memorial  has  been  unanimously  adopted  by  this  body, 
and  is  respoctiuUy  submitted  for  your  serious  consideration: 

To  the  Honorable  the  Senate  and  the  House  of  Representative*  of  the  United  States: 

The  National  I^ive-Stock  Excliange,  orij;ani/ed  for  the  purpose  of  protecting  the 
interests  of  the  producer  and  consumer  of  live  stock,  Laving  over  'J, (MX)  niembers 
actively  engaged  iu  hreeding,  raising,  feeding,  shipping,  buying,  selling,  slaughter- 
ing, and  exporting  all  kinds  of  live  stock  and  their  products,  respectfully  represent 
to  your  honorable  body : 

That  certain  outlets  for  their  productions  have,  through  the  practically  prohibit- 
iA'e  restrictions  ])lace(l  on  them  by  certain  foreign  countries,  been  denied  them,  and 
such  products  forced  on  already  overl>ur<lened  home  markets,  entailing  great  loss  on 
the  i^roducers,  which  has  had  a  depressing  etl'cct  on  the  entire  coninurciiil  interests 
of  this  great  country,  it  being  an  uncontroverted  fact  that  a  <lepression  of  the  agri- 
cultural interests  atlects  unfavorably  every  line  of  commercial  enterjtrise. 

That  the  said  restrictions  on  the  exportation  of  the  products  of  the  industry  we 
represent  are  alleged  to  have  been  made  on  account  of  the  unhealthy  condition  of 
our  livfi  stock,  and  also  as  a  retaliatory  measure  to  com])el  this  country  to  iidniit  free 
of  duty  certain  of  their  i)ro(luctious.  Tlie  live  stock  throughout  the  United  States 
was  never  in  a  healthier  condition,  and  the  disease  ])retext  is  tlu^  veriest  subterfuge, 
b(!cau8e,  if  such  was  the  cmsc,  the  strict  ante  and  ])(>st  mortem  systematic  supervision 
of  our  livestock  and  meat  food  ]»roducts  nuidc  by  the  United  States  Government, 
State  and  municipal  ol'licers,  who  critically  examine  and  pass  upon  every  animal  and 
the  product  thereof  olfered  for  sale,  preclude  the  ])OHsibility  of  any  aninuil,  or  any 
]iortion  of  any  carcass,  from  any  cause  unlit  for  food,  being  used  as  such.  Tlierefore 
the  claim  that  our  live  stock  and  live-stock  food  products  are  unhealthy  or  untit  for 
export  is  without  foundation  in  fact. 

We  therefore  pray  that  Ccmgress  and  the  dijilomatic  departments  of  our  Govern- 
ment will,  through  their  larger  experience  and  more  intimate  knowledge  of  the  means 
necessary  to  be  emjiloyed,  enact  such  legislation  as  they  in  their  wisdom  deem  expe- 
dient, and  such  as  this  the  largest  industry  in  rlie  world  demands,  lor)king  to  a  recip- 
rocal exchange  of  productions,  thereby  atlording  the  vast  industry  wliich  we  have 
the  honor  to  rc])resent  the  relief  sought,  and  the  opportunity  of  sending  our  live 
stock  and  meat  food  ])roduct8  to  the  markets  of  tlie  world,  unhampered  by  any 
unnecessary  and  uncalled  foT  restrictions. 

The  National  Livk-Stock  Exchanqb, 
By  W.  H.  TuoMi'soN,  Jr.,  President. 

Attest: 

C.  W.  Bajieh,  Secretary. 


Farmers^  Ileadquarters,  Clarinda,  Towa. 

March  23, 1806. 

Dear  Str:  I  am  directed  to  say  to  your  comr.ittee  that  our  organi- 
zation, Witliout  regard  to  political  afliliations  of  its  members,  is  most 
emphatically  for  reci])rocity  and  commercial  treaties. 

The  creation  of  rerij)rocity  in  1800  was  beneficial,  yea,  it  was  a  bless 
ing  to  the  nation,  while  its  rej)eal  was  a  curse,  multiplying  bankruptcy 
and  creating  i»overty  at  home  and  riciies  tabroad. 

We  hope  and  pray  for  its  return — a  blessing  vouchsafed  by  the  return 
of  the  good  old  ])arty  to  jmwer. 

1  am,  sir,  very  respecltully,  M.  li.  Akbbacu. 


RECIPROCITY    STATEMENTS. 


163 


Winter  Wheat  Millers^  LeaguCy  Indianapolis,  lud. 

January  18, 1896. 

Dear  Sir:  In  behalf  of  the  Winter  Wheat  Millers'  League  I  bej;-  to 
take  the  liberty  of  inviting  your  attention  to  House  bill  3212,  introduced 
by  Hon.  W.  S.  Kerr  January  3,  intended  to  secure  a  better  Foreign 
market  for  grain  and  its  products  and  other  agricultural  products. 

In  this  connection  I  hand  you  herewith  a  small  pamphlet,  which  will, 
perhaps,  give  you  some  light  upon  the  extent  of  milling  industries  of 
the  United  States  and  the  discrimiuatious  against  its  products  by  many 
nations  of  Europe.  I  shall  be  pleased  if  you  will  give  this  subject 
careful  attention  and  lend  your  influence  toward  an  early  and  favor- 
able report  from  the  Ways  and  Means  Committee  and  the  prompt 
passage  by  the  House  of  the  measure  in  question.  Without  the  relief 
which  this  bill  provides  the  foreign  trade  of  the  American  miller  will, 
within  a  few  years,  be  completely  ruined.  I  esj)ecially  ask  your  atten- 
tion to  the  result,  as  set  out  in  the  pamphlet  referred  to,  of  the  abroga- 
tion of  the  reciprocity  treaties  with  Spain  for  Cuba  and  with  several 
South  American  countries. 

Hoping  to  have  your  earnest  support,  X  am, 
Yours,  respectfully, 

E.  B.  Perry,  Secretary. 

Hon.  Kelson  Dingley, 

Waahington,  D.  0, 


[Pamphlet.] 

Reciprocity  and  Rbtamation  Needkd— The  DANOKRa  that  Threatkn  our 
Export  Flour  Tradk — Unwarrantable  Oi-pression  of  oub  Greatest  Manu- 
VACTURXNO  Industry  by  Foreign  Countries. 

[lUprinted  from  the  Northwestern  Miller,  MinnuapoUt,  Minn.] 

In  considering  the  pi  out  state  of  tlie  milling  tratle  and  endesivnrins  to  form  some 
intellijjent  conceptiou  is  its  conditions  and  needs,  tlie  chief  diniciilty  with  wliioh 
the  iuM'Htigator  is  confronted  is  the  size  of  the  subject.  Tlie  trade  is  enornioiiH,  its 
needs  ai*'  enormous,  its  difilculties  are  enormous,  its  unimproved  opportunities  are 
enormout  One  might  also  say,  bo  groat  has  been  the  activity  of  our  consuhir  ollicors 
in  its  boh  f  of  recent  years,  that  its  literature  is  enormous.  As  a  matter  of  fiict, 
probably  i  v  millers  know  how  great  are  the  resources  of  information  which  the 
State  Depa  ment  has  at  its  command  with  regard  to  the  manufacture  and  use  of 
tlour  in  evei,  country  on  the  globe.  All.  or  nearly  all,  of  this  is  the  product  of  the 
last  ten  years  and  the  direct  result  of  the  agitation  of  associated  and  individual 
millers  for  more  light  on  this  important  subject.  To  the  Winter  Wheat  Millers' 
I>eague  is  due  a  very  great  deal  of  the  ('redit  for  the  investigations  into  new  fields  so 
far  nuide.  But  it  must,  in  all  fairness,  be  said  that  the  State  I  )cpiirtiiient  has  responded 
promptly,  freely,  and  fully  to  the  movements  inaugurated  by  millers  in  bi-half  of  their 
trade.  The  list  of  publicati<m8  whi<rh  has  been  issued  for  the  benefit  of  millers  alone 
in  the  last  half  dozen  years  is  very  consideralile,  and  its  value  has  indet'd  beci-  liigh. 
Were  it  podsible  for  every  miller  of  any  importance  to  collect  theMi<  publications  and 
to  give  them  the  attention  which  they  merit,  that  fact  in  itHclf  woubl  insure  vast 
etforts  among  millers  to  remove  the  many  obstacles  under  which  the  business  labors. 

In  considering  the  inuucdiate  needs  of  the  trade,  it  is  hard  to  choose  from  this  great 
bulk  of  information  that  which  is  most  necessary  to  give  millers  an  »dc(|uate  idea 
of  where  thoy  stand  and  to  indicate  to  our  legislators  the  dinntiou  in  which  re.brra 
in  our  laws,  as  they  att'ect  milling,  are  most  pressingly  and  sorely  needed.  However, 
without  knowing  the  vast  proportions  of  the  milling  trade  itself,  it  would  be  impos- 
sible to  appreciate  the  Importance  of  remedial  measures  relating  to  it. 


164 


RECIPROCITY   STATEMENTS. 


MAGNITUDE   OF   THE   MILLING  TRADE. 


In  respect  to  the  yalue  of  its  products  and  the  cost  of  its  raw  material,  milling 
far  exceeds  auy  other  raiiiiufacturing  industry  working  from  raw  uiaterial.  To  show 
its  immense  proportions  we  may  quote  the  census  tigures  for  1880  and  1890,  which  are 
as  below : 


Namber  of  mills 

Capital 

Kamber  of  employees 


1880. 


24,338 

$177, 381, 878 

S8,407 


1890. 


18, 470 

$208, 473, 500 

03,481 


"Wages 

Cost  of  material 

Value  of  products. . . 


1880. 


$17,422,316 
441,545,225 
605, 185,  712 


1890. 


$27, 035, 742 
434,152,290 
673, 971, 474 


We  are  accustomed  to  regard  our  manufactures  of  lumber,  iron,  and  steel,  cotton 
and  woolen  goods,  and  boots  and  shoes  as  tremendous,  as  indeed  they  are,  but  it  is 
interesting  to  observe  that  the  flour  made  in  the  United  States  was  worth  more  than 
the  lumber  and  other  mill  products  from  the  log  or  bolt  by  $110,300,000,  more  than 
the  iron  and  steel  manufactures  by  $83,000,000,  more  than  the  cotton  coods  manufac- 
tures by  $246,000,000,  more  than  the  woolen  goods  by  $380,400,000,  and  more  than  the 
boot  and  shoe  manufactures  by  $293,300,000.  These  are  big  figures,  but  none  too  big 
to  show  the  overwhelming  importance  of  milling  in  the  industrial  prosperity  of  the 
United  States.  It  is  interesting  also  to  observe  that  in  the  number  of  plants  estab- 
lished but  few  industries  exceed  milling.  Every  village  of  any  size  has  its  mill. 
The  industry  is  confined  to  no  section,  but  prospers  wherever  wheat  grow,  main- 
taining the  prico  of  the  cereal  and  adding  incalculably  to  the  welfare  of  the  farmer — 
the  backbone  and  mainstay  of  the  country's  material  advan(  isnient. 

It  is,  however,  to  be  noted  in  connection  with  the  census  ligurcs  above  given  that 
the  tendency  of  the  times  is  to  a  lessening  in  the  numlier  of  individual  plants,  while 
at  the  same  time  the  capital,  number  of  employees,  and  value  of  product  has  greatly 
increased.  This  is  due  in  no  small  measure  to  the  dilirtculties  under  which  the  tiade 
labors  with  regard  to  selling  territory.  Deprived  by  discriminating  restrictions  of 
the  held  for  th^  disposition  of  its  products  which  it  should  enjoy  in  outside  coun- 
tries, American  merchant  mills  are  forced  to  widen  their  territory  at  home,  and  thus 
the  com])etition  of  the  larger  proves  too  strong  for  the  smaller  plants  and  they  are 
driven  out  of  the  business. 

Contrary  to  the  opinion  sometimes  expressed  that  consolidation  of  this  sort  is 
desirable,  wo  believe  it  to  be  regrettable  so  far  as  the  general  prosperity  of  the  coun- 
try is  concerned.  The  small  mill  is  an  important  factor  in  the  community  where  it 
la  located.  No  institution  does  more  to  advance  the  general  average  welfare.  Were 
it  possible  for  American  merchant  mills  to  sell  their  product  more  largtdy  outside, 
we  should  be  the  gainer,  both  directly  and  indirectly.  The  rural  community  is  a 
severe  safiferer  when  its  mill  is  crowded  to  the  wall  by  undue  competition.  While  it 
may  eat  whiter  flour,  and  that  of  more  perfect  manufacture,  it  probablj'  gets  no  more 
healthful  or  nutritious  product,  and  it  makes  the  change  at  the  exjieuse  of  its  own 
pecuniary  advancement  as  a  community.  If  foreign  tariffs  allowed  American  millers 
to  export  flour  freely,  upon  fair  terms  as  compared  with  wheat,  the  diflerence  as 
regards  the  prosj)erity  of  the  country  would  bo  very  great  and  very  directly  mani- 
fested. The  cry  of  low  wheat  would  be  no  longer  heard,  for  we  should,  under  such 
a  state  of  things,  have  little  or  no  unground  wheat  to  spare. 

The  truth  of  these  assertions  is  so  well  recognized  by  all  who  have  given  the  sub- 
ject »ny  thought  that  they  really  border  upon  the  axiomatic.  All  intelliiicnt  mill- 
ers know  that  the  United  States  is  suflering  heavily  from  the  duties  imposed  upon  hei* 
flour  by  almost  all  foreign  countries.  While  this  taxation  would  iu  itself  seem  to  be 
a  snfBcient  burden  for  the  trade,  :'-■  ii  only  a  beginning  of  the  ditliculties  which  exist. 
A  fact  which  bears  ^.ith  fully  as  heavy  weight  upon  the  prosperity  of  our  millers  is 
that  in  nearly  every  country  importing  wheat  and  flour  wheat  is  adnimitted  under  a 
duty  lo  light  as  to  discriminate  seriously  against  the  manufactured  product. 

This  tendency  is  one  which  constantly  increases  among  continental  cotintries. 
They  are  willing  to  take  our  wheat — for  the  advantage  of  their  own  millers — but  they 
shut  out  our  flour  in  response  to  the  clamor  of  the  same  element — the  home  manu- 
facturer. It  is  this  condition  of  things  against  which  the  American  miller  most 
bitterly  protests.  Under  the  state  of  afl'airs  which  now  exists  the  United  States  is 
hit  hard,  "both  going  and  coming."  Our  wheat  is  taken  and  our  flour  is  excluded. 
Thus,  the  manufacturing  profit  goes  into  foreign  hands,  and  our  export  mills,  shut 
oat  abroad,  crowd  back  upon  the  territory  of  others,  crashing  out  smaller  mills  and 
damaging  the  communities  in  which  they  are  located.  This  process  must  go  on 
until  there  ia  a  fair  market  abroad  for  American  flour.  There  can  not  be  such  a 
market  until  diaorimination  between  wheat  and  flour  is  removed,  and  this  discrimi- 


itries. 
It  tliey 
piiauu- 

lUOHt 

lileH  is 

lluiltHl, 

shut 

lis  and 

Igo  on 

Ijuch  a 

jrimi- 


RECIPROCITY    STATEMENTS. 


165 


nation  will  not  oease  except  as  the  result  of  retaliation  upon  foreign  imports — a 
course  for  which  the  laws  of  the  United  States  distinctly  provide,  but  of  which  pro- 
vision ])ra('tically  no  advantage  h.as  so  far  been  taken. 

At  this  point  we  may  with  profit  consider  the  conditions  under  which  oiir  wheat 
and  flour  go  to  continental  markets.  The  conditions  are  indicated  by  the  figures 
below : 

European  tariffs. 


Belf^inm. 
Holland. 
Denmark 
Italy.... 
Spam  ... 


Wheat  per 
bushel. 


Free. 
Free. 

Free. 

$0.29 

.42 


Flour  per 
barrel. 


$0,386 
Free. 
Free. 
1.49 
2.26 


Switzerland 
Germany. .. 
Portugal*. . 

France 

Sweden  


"Wheat  per 
bushel. 


$0. 058 
.32 
.47 
.37 
.24 


Flour  per 
barrel. 


$0. 386 

2.21 

2  18 

1. 88  to  2.  73 

1.64 


*  Prohibited,  except  under  conditiong  prescribed  by  the  Government. 

Of  the  duties  above  enumerated,  which  are  coni;)ilpd  from  the  latest  statistics 
procurable,  that  of  IJelgiuni  has  been  imposed  within  a  few  months,  entry  of  flour 
and  wheat  to  that  country  having  formerly  been  free.  France  has  raised  her  tariff 
within  the  past  two  years  to  a  prohibitory  point,  Hhuttiug  our  ilonr  out  completely. 
Germany  has  done  the  same,  in  response  to  a  similar  clamor  from  her  milling  inter- 
ests, though  she  is  to  quite  an  extent  dependent  on  (jutside  countries  for  raw  mate- 
rial. Denmark's  millers  are  now  agitating  for  a  tariff  on  flour  and  it  remains  to  be 
seen  whether  the  movement  will  prove  successful. 

Taking  4J  bushels  of  wheat  to  represent  a  barrel  of  flour,  the  discrimination  made 
by  the  countries  above  enumerated  against  the  importation  of  flour  is  as  ioUows : 


Belgium . . 
HoUand  .. 
Denmark . 

Italj- 

Spam 


Per  barrel. 


$0. 386 


.185 
.870 


Switzerland 
Germany  . . . 
Portugal — 

France  

Sweden 


Per  barrel. 


$0. 12,'> 

.770 

.065 

.  215  to  1. 065 

.46 


It  will  thus  he  seen  that  in  no  continental  country  which  serves  as  a  market  for 
our  wheat,  with  the  exception  of  Holland  and  Denmark,  is  our  tlour  received  on 
equal  terms,  while  in  the  chief  consuming  country  it  is  very  largely  excluded  by  the 
onerous  taxes  placed  upon  it. 

AMERICAN   TARIFFS. 

Leaving  European  countries,  we  may  well  look  at  those  nearer  home,  in  which  we 
might  fairly  expect  to  maintain  our  Hour  market  uiKpu'Stioncd,  but  where,  on  the 
contrary,  we  are  handicapijcd  to  an  unbearable  degree  by  arbitrary  taxation.  A 
striking  instance  of  this  condition  of  tilings  i't  atl'ordcd  by  Cuba  and  I'uerto  Hico,  and 
our  readers  are  doubtless  all  familiar,  so  great  has  been  the  agitation  of  the  subject, 
with  the  arbitrary  and  unwarrantable  course  of  Spain  with  referfiuco  to  American 
flour  in  these  islands.  Our  flour,  under  the  socoud-colunm  or  favored-nation  clause 
of  Spain's  tariff  regulations  for  Cul»a  and  Puerto  Kico,  is  now  paying  a  duty,  includ- 
ing port  charges,  of  sj'I.Hi  jicr  barrel.  Under  the  recuprocity  treaty  between  the 
United  States  and  Spain,  which  went  into  effect  January  I,  lSit2,  and  wliieh  made 
special  concessions  as  to  ungar,  our  Ilonr  was  admitted  to  Cul)a  and  I'uerto  Hico  at  a 
duty  of  $1  per  220.J  i)oun<tH,  or  about  S.s  cents  f>er  barrel.  Upon  the  aliolition  of  tlu' 
reciprocity  treaty,  Spain  ,)romi)tly  seized  the  o])port unity  to  raise  the  tariff  on  flour 
to  the  first-column  or  least-favored-nations  rate,  making  it  about  $1.41  {)er  barrel, 
Tiiis  was  subscfiuently  reduced,  by  the  excessive  agitation  of  tlu^  tJiibiuiH  and  Ameri- 
cans interested,  to  $l.l(!  per  barrel,  where  it  now  stands.  Winter-wheat  millers 
especially,  who  formerly  had  an  important  and  growing  trade  in  tliese  islands,  feel 
very  severely  and  complain  with  much  bitterness  of  the  efl'ect  of  this  heavy  tax  njion 
their  business. 

RKCirROCITY  AND  ITS  EFFKCT8. 

At  about  the  same  time  when  the  reciprocity  treaty  was  enacted  with  Spain,  as 
applying  to  ("uba  and  I'uerto  Kico,  others  were  concluded  with  Urazil  ami  the  ( 'entral 
American  States.  The  policy  of  reciprocity,  which  was  always  a  very  poiiular  one 
with  the  thinking  business  (dement  of  the  country,  was,  however,  completely  obliter- 
ated by  the  passage  of  the  Wilson  bill.     Something  of  the  effect  of  the  abrogation  of 


H 


a1| 


Ifi6 


RECIPROCITY    STATEMENTS. 


reciprocity  relations  may  be  seen  by  the  following  figures  of  flour  exports  compiled 
from  Government  returoB : 


Cuba 

Puerto  Rico 

S.anto  Ddiuinfto 

Other  West  Indies  and  Bermuda 

Total 


1393-94. 


Barrett. 

602,  248 

200, 813 

44,173 

937,  556 


1,844.790 


1894-05. 


Barrels. 

379, 856 

118,  61V 

41, 836 

951,  492 


January  1 

to  July  31, 

1894. 


.Barrel*. 

398,  283 

111,682 

24,  323 

646,  640 


January  1 

to  July  31, 

1895. 


Barrels. 

200, 932 
67, 790 
23, 821 

550,  555 


1,491,801       1,080,928 


843, 098 


These  figures  show  that  the  loss  to  American  millers  in  Cuba  and  Puerto  Rico  by 
the  abrogation  of  the  niciprocity  treaty  was  nearly  half  of  their  trade.  The  case  of 
Cuba  is  an  extronie  one,  owing  to  the  oppresHive  poliry  of  Spain  toward  that  Island, 
which,  it  is  believed,  can  not,  in  the  nature  of  things,  long  continue,  and  certainly 
should  not  do  so;  but,  in  a  less  marked  degree,  the  abrogation  of  reciprocity  has 
allccted  our  flour  trade  with  every  country  with  which  treaties  were  concluded.  As 
a  matter  of  fact,  the  rcci])rocity  policy,  which  promised  so  much  for  millers,  had 
only  just  been  inaugurated  w  hen  it  was  destroyed  by  reactionary  legislation.     What 

Eroportions  it  might  have  reai^hed  under  wise  guidance,  or  what  proportions  it  may 
ereaftor  reach  under  enlightened  laws,  is,  however,  faintly  indicated  by  the. results 
of  the  short  trial  whicli  it  received. 

To  Brazil  our  flour  was  admitted  free  in  return  for  suitable  concessions  as  to  the 
entrance  of  Brazilian  products — mainly  coffeo — into  this  country.  Our  trade  in  Bra- 
zil had  been  a  constantly  increasing  one  for  many  years,  as  the  following  figures  of 
average  yearly  exports  show : 


Tears. 

Barrels. 

Tears. 

Barrels. 

1840-1849             

253, 000 
395,  OHO 
352,  OUO 
510,  000 

1880-1889 

645  000 

1850  18,59 

1890-1894 

817,  000 

18t!0  18fii1 

1894 

021. 000 

1870-1879 

In  the  year  ending  with  June  30,  1895,  however,  following  the  abrogation  of  our 
treaty  with  Brazil,  our  ex])ort8  of  flour  dropjied  back  to  775,425  barrels.  American 
flour  now  pays  a  duty  of  about  42  cents  per  barrel.  It  is,  moreover,  in  greater  need 
of  tarift"  concessions  in  that  coiiiitry  than  it  has  ever  been  before,  from  the  fact  that 
Argentina  has  gone,  to  a  considerable  extent,  into  the  numufacture  of  flour,  and  is 
■workiiij,,  with  some  success,  to  secure  pos.session  of  adjacent  Brazilian  markets. 

American  Hour  is  almost  entirely  excluded  from  Mexico — which,  owing  to  the  fact 
that  little  wheat  is  grown  in  that  Republic,  should  afford  a  large  field  for  it — by  the 
duty  of  about  $10.66  per  barrel.  Freight  rates  are  something  like  .$10  per  ton,  and 
the  basis  of  exchange  is  unfavorable,  yet,  with  these  enormous  obstacles  confronting 
it,  .52,065  barrels  of  American  flour  foimd  its  way  into  Mexico  in  1894-95  and  51,700 
barrels  in  1893-94.  With  relief  in  the  direction  of  a  more  rational  tariff  it  can  not 
be  doubted  that  business  in  American  flour  would  grow  rapidly. 

The  South  American  Rei)ublii.  and  most  of  the  West  India  islands  have  duties  on 
floor  which  cut  an  important  figure  in  American  exports,  since  the  United  States 
already  supplies  some  flour  to  the  majority  of  these  countries,  and  is  the  natural 
source  of  a  nmch  greater  su))ply  to  them,  were  not  their  duties,  to  a  greater  or  less 
degree,  prohibitory.  Probably  there  are  few  of  these  countries  which  would  not  be 
ready  to  admit  American  flour  an  favoraWe  tonus  were  they  assured  that  reciprocal 
favors  Avould  be  granted  to  their  produi^ts  by  the  United  States.  Among  the  duties 
imposed  by  these  countries  and  islands  we  may  instance  the  following,  as  showing 
the  degree  to  which  American  flour  is  barred  out  by  the  tarift': 


Per  barrel. 

Per  barrel. 

Central  Aniorica: 

Oiint^suitilH.  -  ■- 

12.65 

.25 

8.64 

.88 
6.40 
8.14 

.60 
High  dutv. 

West  Indies: 

A iitiijrua ........................ 

$0.94 
60 

British  lloiiduraB.. 

Bahamas  (10  per  cent  and) 

Bomiuda., 

Salvtuior 

6  per  cent. 

li  per  cent. 

l.Oi 

South  Amnrica: 

I^oli  via 

Jamaica .•••••■■••«..•.> 

C(»lonibia  .■■■ 

Santo  Domingo  ................. 

4.50 

Bciiador  .- 

St.  Thomas ............  ......... 

8  per  cent, 
.76 

Parafitua? 

Trinidad 

Peru 

Turk's  Island 

.00 

TmumuaIa 

Haiti 

i.n 

• 

fact 
y  tlie 
,  aud 
iting 
1,700 
a.  not 

ies  on 
itates 
Unral 
|r  less 
iiot  be 
Irocal 
luties 
Iwing 


nrrel. 


D.94 
.60 

•  cent. 

•  cent. 

1.04 

4.50 

'  cent. 

.76 

.00 

•.sa 


RECIPROCITY    STATEMENTS. 


167 


Of  recent  years,  United  States  mills  have  acquired  quite  a  trade  in  China  and 
Japan,  which  is  not  hanipcired  by  an  import  duty  of  any  ('onHt'quence.  It,  however, 
sutlers  very  much  fntm  the  "likin"  or  district  taxes  imi)0.sed  upon  it  in  China  at 
each  district  boundary  which  it  passes.  This  must  necessarily  operate  to  jjroatly 
restrict  the  trade,  which,  nevertheless,  increases  at  a  very  fair  rate,  year  by  year, 
indicating  what  mij;ht  be  done  in  China  wore  these  vexatious  taxes  removed. 

From  the  north  as  well  as  the  south  United  States  millers  are  hampered  by  tariffs 
on  flour,  Canada,  New  Brunswick,  aud  Nova  S(!otia  havintj  a  duty  of  75  cents  i)er 
barrel  and  Newfouudland  one  of  25  cents  per  barrel.  Wliilo  the.se  taxes  are  severely 
felt,  especially  by  the  northwestern  trade,  it  will  bo  see  by  the  tigures  given  inae- 
witli  that  the  United  States  manages  to  maintain  her  foothold  in  the  Dominion, 
though  with  little,  if  any,  progress. 

OUIl  SITUATION  SUMMAKIZKD. 

By  looking  over  the  figures  given  in  the  matter  preceding,  we  shall  perceive  that 
the  United  States  has  practically  no  untaxed  selling  territory  except  (Jreat  Britain, 
Holland,  and  Denmark.  Our  flour  has  been  driven  out  of  France,  Germany,  liolgium, 
and  Sweden  by  heavy  and  dis(Timinating  tariffs,  and  Denmark  is  even  now  agitating 
the  feasibility  of  imposing  a  similar  tax.  On  our  soutiiern  border  we  are  shut  out 
of  Mexico  almost  absolutely,  and  out  of  Cuba  to  a  great  extent.  Brazil  lias  jilaced, 
in  retaliation  for  withdrawal  of  privileges  as  to  the  exjiort  of  coffee,  a  duty  on  our 
fiour  which  aids  the  millers  of  Argentina  to  supplant  it.  Most  other  South  American 
countries  in  which  we  should  have  a  good  trade,  if  our  laws  favored  reciprocity  rela- 
tions, have  barred  us  out  more  or  less  comi)letely.  On  the  north,  ('aii:id;i  and  the 
maritime  provinces,  with  the  exception  of  Newfoundland,  have  weightotl  our  trade 
to  an  extent  which  is  greatly  felt  by  our  millers. 

WHAT   IS   THE    KEMEDYt 

As  has  already  been  Baid,  American  millers,  while  they  suffer  seriously  from  the 
8imi)le  fact  that  their  flour  is  taxed  on  all  sides,  do  not,  by  any  means,  (iud  this  their 
only  grievance.  The  practice  of  admitting  our  wheat  at  a  lower  rate  than  our  flour 
adds  greatly  to  the  difficulties  under  which  the  trad*;  laliors.  There  is  little,  if  any, 
doubt  that  all  continental  countries  which  discriminate  against  our  llonr,  as  com- 
pared with  our  wheat,  can  be  compelled  by  retaliatory  ineasures  to  admit  them  on 
eipial  terms.  France,  which  does  not  ordinarily  need  much  of  our  wheat,  okving  to 
her  own  large  crop,  is  an  especial  olfouder  against  the  millers  of  the  Uuitt;d  States, 
in  the  fact  that  her  reexportation  laws  are  such  as  to  amount  to  a  bounty  on  her 
flour  exports.  Not  content  with  absolutely  barring  out  our  flour,  she  appro])riate8 
our  markets  in  Great  Britain,  taking  our  wheat  when  she  wants  it  and  utilizing  it 
to  deal  us  a  l)low  in  our  principal  selling  territory.  France  is  both  directly  and 
indirectly  an  offender  against  the  flour  makers  of  the  United  States.  Her  exports 
of  manufactures  to  tliis  country  are  very  large,  and  it  is  highly  probable,  that  a  little 
vigorous  retaliation  in  behalf  of  American  flour  would  bring  France  to  see  the 
advisability  of  more  Just  nuithods. 

The  situation  in  Belgium,  which  shut  our  fiour  out  by  a  tax  imjjosed  this  spring,  is 
indicated  by  the  fact  that  for  the  past  six  months  the  arrivals  of  American  flour  at 
Antwerp  have  l)een  only  about  247,000  kilos,  whi'reas  foriutuly  al)oiit  5,000,000  kilos 
were  received  in  that  time.  I'here  is  no  unity  of  feeling  as  to  the  tariff  in  Belgium, 
the  opposition  to  it  being  great  among  the  consuming  classes.  Moreover,  the  Bel- 
gian millers  find  that  French  th.nr,  against  wliieh  the  tax  was  mainly  directed,  <'ome8 
in  as  freely  as  ever,  aud  they  are  dissatisfied  with  the  results.  In  view  of  this  state 
of  things,  it  is  most  probable  that  the  removal  of  the  Belgian  duty  nught  be  secured 
by  comparatively  small  pressure  from  our  Covernment. 

There  is  no  continental  country  whose  flour  tariff  is  oppressive  to  the  American 
trade  which  does  not  exi)ort  manufactured  goods,  more  or  less  h(>avily,  aii'l  which  is 
not,  therefore,  esjiecially  open  to  the  effects  of  retaliatory  legislation.  It  is  a  fact 
so  p.'itent  as  to  re(|uire  little  or  no  discussion,  that  in  almost,  if  not  (juite,  every  one 
of  thest»  countries  the  imposition  of  taxes  unfavorable  to  American  mill  products 
might  have  been  prevented  liy  legislative  interference  at  the  proper  time. 

On  our  own  continent,  and,  as  far  as  possible,  in  Europe,  the  j)olicy  of  rec^iprucity, 
so  atispicionsly  inaugurated,  should  be  steadily  ])U8hed.  This  is  a  jiolicy  which  is 
e(iuital)le  on  its  face,  which  does  not  ask  something  for  nothing,  but  which,  on  the 
other  hand,  does  not  propose  to  give  something  for  nothing.  It  is  the  trade  policy 
par  excellence,  aud  no  greater  bluniler  has  ever  been  made  in  tariff  legislation  than 
the  abrogation  of  the  reciprocity  treaties  which  had  already  been  established  to 
the  south  of  the  United  States.  There  is  a  certain  sympathy  between  the  southera 
Kepiililics  of  America  and  the  United  States  which  inclinos  them  to  enter  into 
trade  relations  with  us.  At  the  same  time,  all  have  their  own  conunodities  to  offer, 
aud  the  principle  of  meum  and  teum  is  just  as  well  developed  with  our  southeru 


168 


RECIPROCITY   STATEMENTS. 


neiphhors  as  it  is  with  ourselves.  An  immense  field  for  our  flonr  lies  awaiting 
development  in  these  coiintricH,  and  it  sliould  be  the  care  of  every  miller  and  millers' 
association  to  work  for  tlio  restoration  and  advancement  of  the  policy  of  reciprocity 
with  these  Hepnblics.  Brazil,  it  is  believed,  wonld  gladly  respond  to  overtures  in 
this  direction.  Cuba  and  I'orto  Rico,  though  not  now  independent,  seem  in  a  fair 
way  to  become  so,  when  it  is  very  certain  that  they  will  be  glad  to  make  acceptable 
recijjrocal  arrangements  as  to  onr  flour.  Even  under  existing  conditions,  it  is  said 
that  Spain  does  not  find  the  efl'ects  of  the  severe  tariff  against  American  flour  satis- 
factory, and  that  she  is  inclined  toward  a  more  lenient  tax. 

WHAT  WK  ABB   EXPOUTINO. 

In  spite  of  all  the  difficulties  under  which  it  has  labored,  the  flonr  trade  of  this  coun- 
try has  grown  very  steadily.  The  record  for  1895,  however,  shows  the  bad  results  of 
the  oppressive  legislation  recently  enacted.  We  liave  lost  1,600,000  barrels  from  the 
record  of  1X94,  while  our  wheat  exports  have  also  been  12,3lX),000  bushels  less.  We 
have  at  present  to  contend  with  heavy  wheat  exjjorts  from  Russia  and  Argentina, 
which  enable  British  millers  to  supplant  our  flour  in  a  greater  degree  than  thoy  have 
done  in  former  times.  Since  this  state  of  things  isalraosc  certain  to  continue,  there 
is  the  greater  necessity  that  we  secure  fair  markets  in  the  many  countries  which  now 
endeavor,  arbitrarily,  to  shut  us  out.  The  milling  capacity  o{  the  United  States  is 
probably  three  times  as  great  as  is  necessary  to  supply  the  flour  wants  of  our  own 
citizens.  It  is  obviously  of  high  importance  to  the  farmer,  the  railltT,  and,  indi- 
rectly, te  all  classes  of  our  population,  that  our  wheat  should  bo  ground  at  home. 
It  remains  to  be  seen  whether  Congress  will  long<ir  permit  the  chit^f  industry  of  the 
United  States  to  be  maimed  and  dwarfed  at  the  ])loasure  of  foreign  countries,  which, 
nevertlieless,  ex])ect  the  United  States  to  import  their  manufactured  products  heavily 
and  on  favoralile  terms. 

The  large  table  given  herewith  shows  the  exports  of  American  wheat  and  flour  for 
six  years  ending  June  30,  with  destinations.  By  observation  of  these  figures,  the 
position  of  our  trade  may  be  plainly  seen.  The  disproportionate  quantities  of  our 
wheat  taken  by  continental  countries  clearly  indicates  what  might  bo  done  by  our 
millers  there,  even  under  a  high  tariff,  were  wheat  admitted  on  equal  terms  with 
flour.  Our  consideral)le  exports  to  Central  and  South  American  states,  and  even  to 
Mexico,  under  the  present  oppressive  tariff  system,  show  plainly  how  e.asy  it  would 
be  to  enlarge  those  fields  for  our  flour  by  suitable  reciprocal  treaties. 

A  further  serious  grievance  among  American  millers  is  that  wheat  is  exported  at 
relatively  cheaper  freights  than  flour.  This  suicidal  course  on  the  part  of  tlie  trans- 
portation companies  adds  to  the  already  heavy  discriminations  against  the  manufac- 
tured product  and  greatly  increases  the  burden  of  the  home  flour  niaker.  Statistics 
of  the  Uovernment,  just  at  hand,  show  that,  for  the  ten  months  ended  October  31, 
189.^,  our  exports  of  wheat  to  Great  Britain  increased  over  2,700,000  bushels,  while 
our  flour  exports  fell  off  about  1,100,000  barrels,  a  state  of  things  which  is  attril»uted 
largely  to  the  discrimination  in  freight  alluded  to.  It  is  so  evident  that  such  dis- 
crimination is  ill-advised  and  iniquitous  in  its  efl'ects  that  no  argument  would  seem 
to  be  needed  to  secure  legislation  calculated  to  do  away  with  the  practice. 

IN   CONCLUSION. 

To  one  possessing  any  familiarity  with  the  milling  industry  and  its  immensity  it 
appejirs  wholly  superfluous  to  adduce  arguments  as  to  the  bald  necessity  to  the 
country  of  its  preservation.  We  are,  before  all,  an  agricultural  nation,  and  our  pro- 
duction of  the  cereals  lor  many  years  must  continue  enormous.  The  advisability  of 
maintaining  and  expandingour  Hour  trade,  as  compared  with  that  in  the  raw  material, 
wheat,  is  very  simply  demonstrable.  We  exported,  in  the  year  ending  June  30, 1895, 
76,102,704  bushels  of  wheat,  and  got  for  it  $43,805,663.  We  exported,  in  the  same 
time,  15,268,892  barrels  of  flour,  and  for  it  we  received  $51,651,928.  Had  the  wheat 
shijtiicd  gone  as  flour,  the  gain  to  the  assets  of  this  country,  even  at  the  present  low 
values  of  the  manufactured  product,  would  have  been  over  $13,000,000.  This  takes 
no  account  of  tht-  profit  which  would  accrue  to  American  farmers,  mechanics,  and 
mill  employees,  most  numerous  and  widely-distributed  classes,  and,  through  them, 
to  all  our  citizens,  of  everj'  rank  and  degree. 

The  arguments  in  favor  of  legislative  aid  and  countenance  to  our  mills  are  so 
unimpeachable  in  quality,  and  so  irrefutable  in  logic,  that  it  would  seem  as  if  there 
could  be  no  need  of  pressing  them  upon  the  public  attention.  Yet,  when  we  find 
American  flour  barred  out  by  dvities  from  nearly  all  the  countries  on  the  face  of  the 
globe;  when  we  find  our  wheat  admitted  under  a  low  tariff  and  milled  to  be  used  as 
a  club  to  destroy  our  flour  trade;  and  when,  in  ad<lition,  the  very  transportation 
companies  which  carry  our  jiroducts  abroad  discriminate  heavily  in  favor  of  the  raw 
material,  it  becomes  evident  that,  plain  as  these  facts  nuiy  be,  they  are  yet  not  so 
plain  as  to  be  visible  to  thos*  from  whom  alone  the  remedy  can  come — our  country's 


I 


1 


RECIPROCITY    STATEMENTS. 


169 


lawmakers.  The  NorthweHtern  miller  is  convinced  that  if  these  eonditious  were 
generally  understood  by  our  lejjisliitors  .as  they  exist,  thoy  would  no  longer  permit 
the  dominant  industry  of  tiu^  United  States — an  industry  upon  whuHe  prosperity  that 
of  millions  of  our  citizens  directly  and  indirectly  dei)ends— to  stru^iKlo  along  against 
heavy  and  increasing  odds,  unaided  and  unoncouraged,  as  it  ia  now  doing. 

Wheat  and  flour  expoitafrom  the  United  Slates,  ISOO-ISO-" 


United  Kingdom 

Germany 

France  

BelKiiim 

Hollanil  

Denmark 

Portuga  I 

Italy 

RiiBHia 

Swpdon  and  Korway 

Canada 

Nova  .Scotia  and  New  Brun« 

wick 

Brltisli  Honduras 

JSerniuda 

Newfoundland  and  Labrador 

Costa  Kica 

Guatemala 

Honduras 

Nicaragua 

Salvador 

Mexico 

Miqnelon,  Lanpley,  »iid  St. 

Pierre  lelnnd.s 

British  West  Indies 

Danish  West  Indies 

Dutch  West  Indies 

French  West  Indies 

Haiti 

Santo  Domingo 

Cuba 

Puerto  Rico 

Bra/.il 

Chile 

("olomhia 

Ecuador 

British  (i  uiana 

Dutch  Guiana 

French  Guiana 

Peru 

Uruguay 

"Venezuela 

China 

Hongkong 

Japan 

Asiatic  Russia 


Total. 


1890. 


Wheat. 


Bushel*. 

38,  240,  .523 

8,786 

3,  846, 505 

3, 741, 303 

385, 170 

"2,'8i2,'483' 


2,  270, 769 


21, 000 
32, 000 


1, 768,  284 
27,  692 


92, 039 


63, 246, 704 


Flour. 


Barrels. 

7,  423,  988 

6,275 

283 

170,  094 

494, 108 

390 

21, 409 


12,  346 
681, 383 

90,996 
10, 998 


1891. 


Wheat. 


Bunhels. 

29, 820, 650 

263,  887 

13, 843,  054 

4, 033,  382 

380,  245 

88,  379 

8, 124,  648 


7,  9.'!8 
2, 648, 211 


129, 951 
37, 148 
47,  loy 
12, 130 
24,  841 
47, 875 
81, 101 

16,564 
466,  488 

81,377 

21, 529 
110,  313 
167,  740 

31,  675 

255, 820 

161,  996 

687,  342 

340 

61,  420 

31,036 
171,  012 

12,  505 

4,704 

120 

10, 809 
178, 759 

14,  634 
497, 697 

29,756 

11, 690 


12, 082, 691 


24, 802 
33,  005 


680,  127 
45, 134 


63, 956 


54, 807, 463 


Flour. 


BarrA*. 

7, 037,  420 

8,864 

70,134 

115,896 

292,  034 

35,012 

»,730 


10,  902 
280, 150 

15, 102 
15, 625 


117, 086 
39, 131 
62, 528 
18,  822 
32,  507 
59,784 
37,  584 

10,657 

523,  216 

24,772 

21,  497 

111,549 

224,  938 

88, 431 

114,  447 

127,  983 

722,  309 

11,  607 

56,  696 

36, 101 

147,  002 

13, 803 

4,302 

1,607 


194,015 
34, 474 

473, 046 
76,  736 
12, 695 


11,  214,  064 


1892. 


Wheat. 


Bufhelt. 
67,  293,  960 

7, 635, 926 
42, 139,  488 
19,451,804 

8,  515,  631 

1,  779.  539 

2,  937,  071 
596,  022 


1,231,409 
6, 190, 881 


21,  399 
36,  907 


Flour. 


BarreU. 

9, 603, 910 

64,277 

210,  402 

230,  983 

663, 485 

32,  625 

49,  765 


164,  622 
57,  594 


8.5,  424 
35,  0115 

332,  osm 

16,  955 
15,  277 
17, 711 
122, 824 
26,  637 
80,  700 
14. 440 
81, 607 
65,160 
34,602 

11, 723 

475,  855 

26, 928 

21,916 

130, 196 

201,  813 

29,  231 

366, 176 

162, 147 

918,  547 

76,  006 

69,  830 

25,501 

167,  63t 

18,  837 

4,888 

808 


194, 631 
13,718 

467,  690 

38, 002 

9,790 


156,466,231   15,042,746 


it; 


i 


170 


RECIPROCITY    STATEMENTS. 


Wheat  and  flour  exports  from  the  United  States,  1890-1S96 — Continncd. 


1893. 

181 
WhoBt. 

H. 

1895. 

WliPat. 

liwIifU. 
7.5,  513.  134 

3.  130.320 
7,491  :;84 
8,794.9.55 
8,  550,  870 
1,016.027 

4,  985.  235 
638,  905 

Flour. 

Flour. 

Wheat. 

Flour. 

United  Kingilom 

lia  nelf. 

10,361,860 

209,719 

1,818 

195.  544 

953,  525 

37,  188 

5,510 

Hiithi'1.1. 

50.  808.  Ii80 
1.  700.779 
8.701.  100 
7.  028. 255 
6,606.  186 
1.010.989 
5,730,231 
84,  636 

Barrelt. 

9,  987, 179 

286,129 

1,903 

182,  722 

1,183,002 

31,  145 

6,087 

lixishfU. 

54,373,341 

2,  5J6,  930 

1,590,791 

liarrflt. 

8.  857.  520 

250,  650 

I,  102 

Ni)tn  1. 

I'?*'!" imii  .....•.........-■■.. 

H.)lTaiul  

Nolo  1. 

Note  1. 

Note  1. 

Italy                      

Note  1. 

RtlflHlJl                           ............ 

215 

64, 338 

408,772 

11,  009 

8,731 
17,071 
100,487 
48,843 
87,  597 
13,  387 
30,  922 
08,  7.55 
51,700 

12,  994 
649,  824 

27,281 

22,  475 
124,  820 
190,  085 

44,  173 
062,  248 
200,813 
920, 809 
250 
108,  495 

24, 653 
218,847 

23,  275 
3, 306 

018 

Notel. 

S\vo(l«n  and  Norway 

( liLiiitdfi 

075, 171 
5,  529, 705 

82,  (m8 
418,  120 

18,051 
10.  423 
18,  6.55 
130.  804 
37,  297 
79,  583 
14,  .529 

23,  005 
59,  750 
61,700 

11,824 

511.5.52 

28.  064 

20,  993 

124.909 

204.  095 

24.  935 
'■ '  0.  406 

-.053 

7.  039 

7.  OO.-i 

75.  575 

32.  999 

181.800 

18,  372 

3, 173 

287 

27 

210,  098 

10,  059 

550,132 

51,836 

10,  714 

458, 042 
4,193,058 

Note  1. 

Note  6. 

Nova  Scotiaand  New  liruna- 
wiok 

Note  5. 

ItritiRli  IlondiirMH. 

Note  2. 

Kormiida              

Note  3. 

Nt^wfuundliiud  and  Labrador 

Note  5. 

CoAta  Rica 

20,  760 

24,  873 

20.  000 
10,  867 

N  ott^  5. 

Note  2. 

Note  2. 

Nicarii«''ua  ..••••..,......... 

Note  2. 

Salvador 

Nolo  2. 

Mexico 

7, 038 

52,  065 

Mi<|uelon.  Langley,  and  St. 

Note  5. 

Bri tish  AV  est  1  ndicH 

Note  3. 

Not«  3. 

Diitrb  WoHtlndics 



Note  3. 

Krench  W**st  Indio.s 

Note  3. 

Haiti 

Note  3. 

41,830 

Cuba    

379,  856 

118,617 

Urazil 

69, 928 

03 
83 

63 

775,  425 

Cliile 

Note  4. 

(Colombia  ........        

113,020 

Kcuador 



Note  4. 

British  Guiana 

Note  4. 

Dutch  Guiana     

Note  4. 

Krench  Guiana 

Note  4. 

Peru 

Note  4. 

Uriiffuav 

Note  4. 

Venezuela 

215,412 
23,717 

583,  608 
68,  428 
19, 025 

Nolo  4. 

China 

36, 144 

TToniikong 

AniatiC'  Htisnia 

Totid 

115,086,339 

16,  421,  072 

88,415,230 

16, 859,  533 

76, 102,  704 

15,268,892 

NoTB  1. — Incliulf'd  under  the  head  "Other  Europe"  in  the  Stnte  BoparliiiPut's  preliniiunry  report 
for  1884-85.  "Otlit^r  Kiiri>i)H"  (t'\ilndiiij{  the  I'liitod  Kingdom,  (icrniimy,  aiid  Fiance)  is  crcdiicd  with 
takiufi  13,290,951  himlwls  of  our  «  lira!  and  1.050.310  hanvl,'*  of  our  Hour  in  tho  year  ending  ,futio  30. 
In  1893-94  tlu'so  countries  took  22.057. 145  bu.shil.s  wheat  and  1.505.061  barrels  fiitur,  showijg  a  loss  of 
9,:i60,184  bimhcls  wheat  and  over  .500,0i)0  barrels  Hour  lor  the  pAst  yi»ar. 

Note  2,— Classed  in  prcliniiuary  report  for  1894-95  aH  "(Jeutrnl'  American  States  and  British  Hon- 
duras,'' our  wheat  exports  were  81,000  biiHhel.s.  or  about  twice  those  of  1893-04,  and  our  Hour  exports 
282,323  barrels,  or  24.000  barrels  increase. 

Note  3.- Classed  under  "West  In<lies  and  IJerniudas  "  in  nreliniinarv  repoH,  and  credited  with 
St  937,550  lyirrelK  in  1893-94,  a  _'  lin  ol  11.000  liairols. 

OtliiT  South  America"  (incluiling  all  countries  except  Brazil  and  C(dom- 
bia),  for  which  territory  the  nceijits  of  Aniericau  Hour  were  446,811  barrels  in  1894-95,  against  480,077 
barrels  in  1893-94— a  loss  of  39,860  barrels. 

Note  5. — Classed  in  report  for  18ii4-95  as  "  British  North  America,"  the  receipts  of  American  flour 
being  910.995  barrels,  against  5.50.740  barrels.  It  is  also  interesting  to  note  that  British  North  .Amer- 
ica, tlu)ngh  so  large  a  wheat  jirodiicer,  took  4,110,255  Inslielsof  our  wheat  in  1894-95,  and  4,200,805 
bushels  in  1893-04. 

British  India  aid  the  Kast  Indies,  net  named  sepiivalely  in  the  table,  received  8,105  barrels  Ameri- 
can tiour,  against  3,000  in  18!t3-9i;  other  Asiatic  countries,  excluding  China  and  not  including  Ocoan- 
ica,  951,732  barrels,  against  736,800  barrels,  and  Africa  14,757  barrels,  against  19,015  barrels. 


951,492  barrels  Hour,  against  937, 
NoTK  4. —Classed  with  "Otlur 


: 


Buffalo  MerchanW  Exchange,  BuffalOj  N.  Y. 

March  23,  189G. 
Dear  Sir:  The  Hiirtalo  Merchants'  Exchaiifje  is  on  record  as  being 
favorable  to  reciprocity,  and  the  members  deem  it  expedient  and  advis- 


RECIPROCITY    STATEMENTS. 


171 


able  to  apply  the  reciprocity  principle  to  future  tariflF  legislation,  and 
reconuneud  the  enactment  of  a  general  law  authorizing  the  President 
to  negotiate  reciprocity  treaties  with  foreign  nations  so  far  as  possible. 
Yours,  truly, 

William  Thuestone,  Secretary. 


report 

(1  with 

uMi  ;io. 

iiss  of 


with 


i 


National  Association  of  Wool  Manif/avturers. 

March  23, 1896. 

Dear  Sir:  Your  circular  letter  of  March  4, 1896,  askif^  the  views  of 
this  organization  as  to  the  ellcct  of  the  reciprocity  treaties  negotiated 
under  tlie  act  of  1890  upon  our  foreign  commerce  and  of  their  repeal, 
has  been  received,  and  after  consultation  with  members  of  the  execu- 
tive committee  I  beg  to  submit  the  following  reply: 

Tliis  organization  believes  most  heartily  in  tlie  general  principle  of 
the  reciprocity  clauses  of  the  act  of  1890;  believes  that  they  were 
decidedly  beneficial  in  extending  the  foreign  commerce  of  the  country, 
and  favors  their  renewal  at  the  earliest  moment  practicable.  It  is  not 
able  to  ofl'er  any  evidence  in  support  of  this  belief  outside  of  that  con- 
tained in  the  official  statistics  of  our  foreign  commerce,  because  the 
operation  of  these  treaties  did  not  extend  to  the  particular  industry  in 
which  its  members  are  engaged.  There  are  reasons  for  this  which 
must  be  obvious  to  the  members  of  your  committee.  The  trade  of  the 
South  American  countries  in  woolen  goods  is  at  the  most  a  small  mat- 
ter, as  climate  and  habits  lead  to  a  comparatively  limited  consumption 
of  these  goods  in  those  countries  for  clothing  purposes.  Even  if  the 
demand  was  larger  it  is  not  to  be  expected  that  American  mills  could 
8U])ply  it,  even  under  the  favorable  conditions  of  reciprocity  treaties, 
because  the  cost  of  production  of  these  goods  in  the  United  States  is 
so  much  greater  than  in  the  competing  countries  of  Europe  that  our 
manufacturers  can  not  ship  to  these  markets  with  any  expectation  of 
underselling  those  who  now  have  possession  of  them.  The  advantage 
gained  by  reason  of  the  reciprocal  arrangements  would  need  to  be  at 
least  equal  to  the  tariff  on  Avoolens  imposed  ,by  the  United  States 
Government  as  the  condition  of  imi)ortation  into  this  country,  for 
domestic  manufacturers  do  not  find  it  possible,  with  the  existing  duties 
of  40  and  50  per  cent,  to  control  their  own  home  markets  in  the  most 
important  lines  of  woolen  goods. 

There  is  another  consideration  in  this  connection,  which  has  an  impor- 
tant bearing  upon  the  answer  to  your  third  question,  asking  if  it  is 
"expedient  and  advisable  to  enact  a  general  law  authorizing  tlie  Presi- 
dent to  negotiate  reciprocity  treaties  with  foreign  countries,  so  far  as 
possible."  With  several  of  the  South  American  countries  wool  is  an 
important  article  of  export,  and  with  one  of  them,  the  Algentine  Repub- 
lic, it  is  the  most  im])ortant  article  of  export.  From  the  several  South 
American  countries,  mostly  Argentina,we  imported  more  than  37,000,000 
pounds  of  wool  in  the  calendar  year  of  1895,  having  a  value  of  nearly 
$5,000,000.  In  previous  years,  under  the  operation  of  the  tariflF  of  1890 
and  those  preceding  it,  our  South  American  wool  imports  were  about 
10,000,000  pounds,  mostly  confined  to  the  third  class  or  carpet  wools. 
It  is  well  known  that  the  wool  tariffs  have  been  especially  framed  for 
the  exclusioii  of  the  South  American  mestiza  wools,  which  are  of  very 
heavy  shrinkage,  and  the  competition  of  which  was  especially  feared 
by  American  wool  growers  at  the  time  of  the  passage  of  the  tariff  act 
of  1867. 


ii 


172 


RECIPROCITY   STATEMENTS. 


I  cito  these  facts  for  the  purpose  of  directing:  the  attention  of  your 
hoiioriiblo  cominittoe  to  the  obstacle  tliey  i)rcHcnt  to  tlic  enactment 
of ''a  jicneral  law  authorizing^  the  PrcHident  to  negotiate  reciprocity 
treaties"  in  connection  with  any  general  tariff  legislation  which  con- 
tenj])lates  a  restoration  of  the  duties  on  wool.  It  is  not  at  all  i)robal)le 
that  the  Argentine  K'ejtublic,  for  instance,  would  consent  to  negotiate 
any  reciprocity  treaty  which  involved  theexclusionof  her  chief  product 
from  the  United  States,  wliere  her  people  know  that  a  large  demand 
for  the  mestiza  wools  exists,  and  the  sale  of  which  would  be  greatly 
iiu;reased  under  any  reciprocal  arrangements  which  made  it  the  basis 
of  future  commercial  intercourse  between  the  two  countries. 

The  nuinufacturers  connected  with  this  association  are  as  a  rule  men 
who  recognize  that  the  industry  of  wool  growing,  if  it  is  to  be  succtess- 
fully  ('arried  on  in  this  country,  must  be  ju'otectcd  in  some  degree  from 
the  competing  wools  of  South  America,  which  are  raised  under  condi- 
tions which  involve  a  nuich  lower  cost  to  the  producer.  By  reason  of 
their  attitude  in  this  resjject,  and  in  view  of  the  fact  that  they  antici- 
pate no  extension  of  their  markets  in  South  Anu'rica  in  consecpience  of 
reciprocity  treaties,  they  are  debarred  from  advocating  any  such  general 
law  as  you  liave  suggested  in  your  circular. 
Very  respectfully, 

8.  N.  D.  North,  Secretary. 


Board  of  Trade,  Qlencoe,  Minn. 

March  23, 1890. 
Sir:  In  reply  to  your  circular  letter  of  the  4th  instant  will  state: 

1.  I  think  the  reciprocity  negotiations  of  18!K)  with  foreign  nations  of 
the  Western  Hemisphere  were  favorable  to  the  United  States. 

2.  The  repeal  of  the  act  of  1890  by  the  tariff  act  of  1894  caused  a 
restriction  on  the  commerce  of  the  United  States,  for  the  reason  we 
had  solicited  their  trade  and  had  offered  to  exchange  our  productions 
for  theirs,  which  they  accepted,  as  it  appeared  a  good  market  for  their 
agricultural  and  mineral  ])roductions,  and  on  our  i)art  our  manufactories 
were  producing  more  g'oods  than  we  could  consiiine,  and,  as  those  were 
nonmanufacturing  nations,  it  would  keep  our  artisans  employed  and 
stimulate  c(mimerce,  both  in  the  construction  of  vessels,  in  freighting 
them  to  and  from  the  foreign  ports,  in  the  exchange  of  commodities 
which  the  tariff  of  1891  abrogated. 

3.  "Is  it  expedient  and  advisable  to  apply  reciprocity  to  future  tariff 
legislation,  etc.  ?"  {a)  Yes ;  to  nations  that  are  consumers  of  our  manu- 
factured goods  and  also  large  consumers  of  our  agriciiltural  produc- 
tions. (6)  No;  do  not  think  it  expedient  to  enact  a  gonerul  law;  the 
laws  should  be  special  with  each  nation,  and  should  be  annulled  when 
not  fully  reciprocal.  ' 

4.  What  can  be  accomi)lislied  by  diplomatic  negotiations,  etc.? 
Have  our  diplomatic  agents  get  the  privilege  from  the  countries  to 

which  they  are  accredited  of  opening  a  free  exhibit  of  such  goods  as 
we  manufacture  or  produce  that  would  be  desirable  in  the  ]>articular 
section  or  country  they  are  located  in,  and  have  t)ie  sample  goods 
admitted  free  of  duty,  and  our  naval  vessels  could  not  be  better 
employed  than  in  the  free  transjjortation  of  such  exhibits.' 

Finally,  in  regard  to  the  tariff  legislation,  I  think  it  worthy  of  your 
consideration,  the  mode  of  levying  duties.    1  think  that  the  duties  ou 


RECIPROCITY   STATEMENTS. 


173 


imports  flhould  be  specific.  An  ad  valorem  duty  is  on  the  fictitious 
value,  that  may  vary  at  each  i)ort  of  shipment,  and  a  specific  duty 
would  do  away  with  false  invoices  and  other  dishonest  means  to  over- 
reach the  Government.  Every  article  can  be  classified  and  graded, 
and  a  much  larger  revenue  received. 
Yours,  obediently, 

Henry  Wadsworth,  President. 


The  Louisiana  Sugar  and  Rice  Exchange,  Neio  Orleans,  La. 

March  !»,  1896. 

In  reply  to  your  inquiry  as  to  the  views  we  entertain  on  (lie  (piestion 
of  reciprocity,  we  would  say  that  the  adoption  of  this  policy  in  1890  was 
a  revival  of  the  policy  of  Mr.  Madison's  resolutions  in  1793,  which  had 
again  been  sought  to  be  carried  out  by  Mr.  JJcnton  in  1829-.'{0,  the  first 
section  of  Mr.  Benton's  bill  closely  resembling  the  first  section  of  the 
sugar  schedule  of  the  McKinley  bill.  Mr.  filaine's  eflbrts  toward  the 
adoption  of  this  jiolicy  bore  fruit  in  the  McKinley  law,  and  abundant 
statistical  information  has  already  been  laid  belbre  Congress. 

Our  opinion  is  necessarily  based  upon  the  manner  of  carrying  out  the 
policy.  Were  Congress  to  take  off  the  duty  on  sugar,  as  the  lever  to 
open  the  ports  of  other  countries  to  our  pnxlucts,  and  make  no  repaia- 
tion  to  our  sugar  produ(;ers  for  thus  leavini;-  them  naked,  we  would 
consider  it  unjust  and  unwise,  but  were  the  bounty  law  reenacted  it 
would  be  both  just  and  wise. 

Yours,  truly,  J.  C.  Murphy,  President. 


rtl 


n- 


'tter 

i^our 
s  on 


Head  of  the  Lakes  Millers'  Association,  o/Duluth  and  Superior,  Minn. 

March  18,  189(>. 

Dear  Sir:  The  Millers'  National  Association,  of  Milwaukee,  Wis., 
have  sent  us  a  copy  of  your  circular  letter  of  March  4,  189<!,  with  the 
request  that  we  reply  to  same,  and  in  doing  so  we  wish  to  state  that 
our  remarks  are  confined  entirely  to  the  effects  of  the  reci])ro<'ity  trea- 
ties on  our  foreign  trade  in  fiour,  and  not  the  foreign  commerce  of  the 
United  Stalies  in  general. 

1.  The  effect  of  the  reciprocity  arrangements  negotiated  by  the  Gov- 
ernment under  authority  of  the  tariff  act  of  1890  was  favorable  to  the 
furthering  and  eidarging  of  our  business  with  the  countries  affected. 
Take,  for  example,  Cuba.  The  flour  shipments  to  that  country  during 
the  years  1890-1894  were  as  follows: 

IJiirrela.  Karr«lH. 

1890 225,820  1893 (516,406 

1891 114,447  1894 662,248 

1892 366,175 

which  shows  a  gratifying  increase  during  the  years  the  treaty  was 
in  effect,  our  flour  during  that  time  paying  a  duty  of  88  cents  per 
barrel. 

The  trade  with  Brazil  during  these  years  also  shows  a  substantial 
increase,  being: 


Barrels. 

1891 722,367 

1892 918,447 


Barrels. 

1893 837,639 

1894 920.869 


174 


RECIPROCITY    STATEMENTS. 


while  our  sliipnients  to  Germany  sliow  a  still  larger  percentage  of 


increase,  being: 

Barrels. 

loM 8,864 

1892 64,277 


Barrols. 

1893 209,719 

1894 280,229 

2.  The  effect  of  the  repeal  of  the  tariff"  act  in  1<S!)4:  was  that  our  busi- 
ness instead  of  increasing,  as  it  had  been  under  the  stiniuUiting  clfects 
of  the  reciprocity  treaty,  fell  oft"  to  a  remarkable  deforce,  our  exports 
to  Ouba  in  1 81  >5  being  only  .'^70,850  barrels  against  G(>li,li48  barrels  in 
18!)-1,  and  the  duty  which  under  the  treaty  had  been  88  cents  per  barrel 
was  increased  to  $4.10  per  barrel,  which  it  now  is,  and  a  prohibitive  one. 

Our  trade  with  Brazil  fell  oft'  during  18!K")  about  145,000  barrels  and 
where  heretofore  our  tlour  was  admitted  free  there  is  now  a  duty  of  52 
cents  per  barrel.  Our  shi])ments  to  Germany  in  1895  being  25G,(i.")0 
barrels,  compared  with  280,220  barrels  tlie  year  previous  under  a  tariff 
of  f  1.54  per  barrel,  show  a  falling  oft"  of  about  1<>  per  cent,  all  of  which 
we  believe  to  be  the  direct  eftect  of  the  abrogation  of  the  reci|)rocity 
treaties  with  the  above  countries,  and  to  the  same  cause  we  attribute 
the  fact  that  France,  Belgium,  and  Germany  have  all  since  put  a  dis- 
criminating and  prohibitive  duty  on  American  flour,  being  21  cents  to 
$1.06,  38  cents  and  77  cents  per  barrel,  icspectively. 

3.  We  are  heartily  in  favor  of  a  general  law  being  passed  authori-ing 
the  Pi'esident  to  negotiate  reciprocity  treaties  with  foreign  countries, 
for  having  already  been  tried  and  proven  successful,  as  tlie  record  of 
the  steady  increase  in  our  foreign  business  during  the  short  period 
which  the  previous  reciprocity  law  was  in  eftect  will  show,  we  believe 
this  to  be  the  most  practical,  eftective,  and  desirable  way  to  open  the 
markets  of  the  world  to  our  products. 

4.  Not  alone  are  tJie  hightarifts  imposed  upon  our  flour  by  most  con- 
tinentjil  countries  our  only  grievance,  but  the  fact  that,  vvith  the  excep- 
tion of  (ireat  Britain,  Holland,  and  Denmark,  they  practically  all  have 
discriminating  duties  against  our  flour,  compared  with  our  wheat,  buiiig 
thus  enabled  to  buy  our  wheat,  manufacture  into  flonr,  and  sell  in  their 
own  markets  at  prices  we  can  not  compete  with. 

Under  our  present  laws,  we  do  not  see  that  we  are  in  a  position  to 
gain  much  by  (iiplomaxic  negotiations  with  these  countries,  considering 
tlie'T  avowed  policy  of  discrimination,  bnt  backed  by  a  genera'  reciproc- 
ity law,  coupled  with  a  suitable  retaliatory  measure,  we  think  they  could 
be  speedily  brought  to  realize  the  injustice  of  their  present  attitu<le  and 
cease  their  discrimination  against  our  flour,  which  we  'jonsider  to  be  of 
the  most  vital  importance  to  the  nulling  industry  of  the  United  States. 
Yours,  truly, 

L.  E.  Wilson,  Secretary. 


Bcranton  "^nard  of  Trade,  Scranton,  Pa. 

Dear  Sir:  As  the  rext  meeting  of  tliis  body  will  not  bo  held  until 
April  20,  it  was  thought  advisable  to  forward  yon  a  <'Opy  of  the  foUow 
ing  resolution,  that  will  be  offered  at  that  meeting  for  favorable  con 
sideration,  to  wit: 

Resolved,  That  the  repoai  of  the  recii)rocity  arriviiKcnieiit  in  the  tariff'  act  of  ISltl 
had  n  bad  effVi^ton  l)nHineHH  in  gt>ii<*ral,  a.>d  that,  in  otir  opinion,  rfcijjrdcitv  is  a  fioitd 
thing  for  thiH  coimtrv,  and  lliti  aindicatioii  of  it  in  fiitine  injriHhition  woniti  be  advis- 
able.    Signed,  II.  K.  I'aino,  (diairnian  comuiitteo  j>n  Ir^islatiou  and  taxes. 

Respectfully,  yo«'.rs,  D.  B.  Atherton,  Secretary. 


RECIPROCITY   STATEMENTS. 


175 


Report  to  the  OalveMon  Chamber  of  Commerce  of  committee  appointed  on 
the  19th  of  March  regarding  reciprocity  treaties. 

Whereas  we  believe  that  the  true  essence  of  all  commercial  inter- 
course is  an  exchange  of  native  products; 

Whereas  we  believe  that  all  commercial  relations  with  foreign  nations 
should  be  based  upon  reciprocity,  and  especially  those  with  American 
Kei)ublics; 

Whereas  undei  existing  circumstances  the  United  States  enjoys 
only  a  small  percentage  of  the  commerce  of  American  countries  that 
should  be  ours  from  our  natural  position,  for  want  of  equitable  com- 
mercial treaties: 

Be  it  resolved.,  That  we,  the  Galveston  Chamber  of  Commerce,  as  a 
body,  heartily  indorse  *  -e  idea  of  equitable  reciprocity  treaties  and 
believe  it  is  the  fundamental  })rinciple  of  commercial  relations  with  all 
friendly  nations,  and  esp  -  ially  with  all  American  Republics, 

Therefore,  we  resDond  to  your  questions  as  follows: 

First.  Was  the  elr'oct  of  the  reciprocity  arrangements  negotiated  by 
the  Governmeuu  with  certain  foreign  nations  under  the  tarilf  act  of  18iH) 
favorable  or  unfavorable  to  the  foreign  commerce  of  the  United  States! 

Answer.  Incomplete  as  tiiey  were,  very  favorable,  and  would  have 
been  far  more  beneficial  had  we  had  American  ships  to  handle  the  busi- 
ness, thereby  retaining  the  millions  of  dolhirs  freight  money. 

Second.  What  was  the  effect  of  their  repeal  l>y  tlie  tariff  act  of  ISO  1? 

Answer.  Disastrous  to  all  interests  that  had  end>arked  in  the  business, 
owing  to  the  repe^il  of  the  treaty  without  notice,  thereby  entailing  heavy 
losses  on  them  caused  by  their  expenditures  necessarily  incurred  in 
preparing  to  do  the  business. 

Third.  Is  it  expediejit  and  advisable  to  apply  the  icciprocity  prin- 
ciple to  future  tariff  legislation  iind  to  enact  a  geneial  law  authorizing 
the  President  to  negotiate  reciprocity  treaties  with  foreign  nations  as 
far  as  ])0S8ible? 

Answer.  Emphatically,  yes.  We  believe  that  reciprocity  is  the  only 
true  priiK'iple  of  commercial  intercourse  with  friendly  nations. 

Fourth.  What  can  be  accomplished  by  dijdonmtic  negotiations  in 
exteiuling  the  exiwrt  trade  of  the  United  Stat«'s? 

Answer.  We  believe  diplomatic  channels  are  the  only  means  of 
accomplishing  these  ends. 

Gtt8.  Rkymershoffer,  Chairman. 
Artiiur  B.  Homer, 
B.  1.  Gautter, 

Committee. 


;il 
vv 
n 


I'M 
in- 


Tohacco  Board  of  Trade,  Clarlsville,  Tsnn. 

Your  communication  of  4th  ultimo  was  laid  before  our  board  at  its 
liist  monthly  meeting,  aiul  I  was  instructed  to  reply  to  your  (juestions, 
first,  second,  third,  and  fourth,  giving  as  opinion  of  the  board — 

First.  The  recijuocity  arrangements  with  other  governnuMits  were 
decidedly  favorable  to  our  foreign  conuuerce. 

Second.  The  repeal  of  these  features  by  the  tariff  act  was  unfavorable. 

Third.  It  is  expedient  and  very  advisable  to  apply  the  reciprocity 
l)rinciple  to  future  tariff  legislation,  and  recounnend  a  •,'^ncivi!  law 
authorizing  tins  President  of  these  Uniti'd  States  to  negotiatf  reci- 
procity treaties  with  all  foreign  nations,  and  to  make  it  the  duty  of  our 


176 


BECIPROCITT   STATEMENTS. 


ministers  to  foreign  governments  to  bring  fully  before  them  the  desire 
of  our  Government  to  form  such  treaties  with  them,  believing  that  such 
treaties  are  beneficial  to  both  ])arties  of  same,  in  the  way  of  larger 
exchange  of  the  products  of  the  countries,  and  tend  to  closer  friendly 
relatic.is  between  us  and  the  various  peoples  of  the  globe,  for  the  sails 
of  our  merchant  marine  are  "the  white  wings  of  peace."  Trading 
peoples  do  not  willingly  quarrel  with  their  customers. 

The  board  has  not  felt  it  necessary  to  go  into  the  statistics  to  show 
the  advantages  of  reciprocity  treaties,  as  you  have  no  doubt  those  before 
you.  As  tobacco  is  our  staple,  and  this  is  the  Tobacco  Board  of  Trade,  it 
respectfully  calls  your  attention  to  the  fact  that  Great  Britain  collects 
a  duty  of  76  cents  i)er  pound  on  tobacco  shipped  from  here  to  that 
country,  costing  here  5  cents  per  pound.  Great  Britain  could  reduce 
her  duty  to  40  cents  per  pound  with  gain  to  her  revenue  (as  shown  by 
the  record  of  reduction  of  tobacco  tax  under  our  internal-revenue 
system)  and  great  benefit  to  her  poorer  population,  and  the  increased 
consumption  would  benefit  the  American  tobacco  planter,  now  much 
oppressed  by  the  foreign  duties. 

Fourth.  Great  gvv -1  can  be  accomplished  by  diplomatic  negotiations 
for  the  extension  of  our  foreign  trade. 

Very  truly  yours,  M.  H.  Clark, 

Secretary  Tobacco  Board  of  Trade. 


"i 

I 


The  New  Yoric  Board  of  Trade  and  Transportation. 

At  the  regular  monthly  meeting  of  the  New  York  Board  of  Trade  and 
Transpoitation  held  December  11,  1895,  the  following  resolution  was 
unanimously  adopted: 

THK   EXTI:^   ilON   OF  AMERICAN   EXPORT  TBADB. 

Resolved,  That,  in  the  opinion  of  tlio  New  York  Hoard  of  Trade  find  Tr.vnBportati()n, 
the  present  Y<*"r  miuks  an  opocli  in  coniniercial  history;  that  the  prosont  is  u  time 
worthy  of  the  best  efforts  of  our  producers,  manufacturers,  and  nierclnintri  to  extend 
the  export  trade  of  the  United  States,  a  -I  that  these  efforts  should  lie  s.ipported  bv 
a  wise  and  pro^rescive  policy  on  the  part  of  our  (iovernment.  The  iirinciple  of  reci- 
I»rocity  should  be  recognized  in  our  diplomacy ;  onr  cunsular  service  bo  controlled 
by  civil-service  rules  and  ade.iuatvly  i^ompensatod,  and  our  rnrrviii},'  trade  be  foHlorcd 
as  far  as  possible  by  liberal  p''.y  for  the  carriage  of  nails  on  the  ocean  as  well  as  on 
land. 

T'AJfWiN  K.  Jambs,  President. 


Kew  York  Chamber  of  Commerce. 

Resolved,  That,  in  the  opinion  of  thi#  chamber,  the  present  year  marks 
an  epoch  in  commercial  history ;  that  the  present  is  a  time  worthy  of  the 
best  (fll'ort  of  our  producers,  manufacturers,  Jind  merchants  to  extend  the 
export  trade  of  the  United  States,  and  that  these  efforts  should  be  sup 
ported  by  a  wise  and  progressive  policy  on  the  partof  oiir  Government. 
The  princiii.e  of  reciprocity  should  be  recognized  in  our  diplomacy;  our 
consular  service  be  controlled  by  civil-service  rules  and  adecjuately  com- 
pens«ated,  and  our  carrying  trade  be  fostered  as  far  as  jiossible  by  liberal 
pay  for  the  cairiage  of  mails  ou  the  ocean  as  weU  as  on  laud. 


RECIPROCITY    STATEMENTS. 


177 


>  desire 
fit  such 
larger 
riendly 
lie  sails 
^'fading 

uO  show 
c  before 
'rade,  it 
collects 
to  that 
reduce 
town  by 
revenue 
I  creased 
w  much 

(tiations 
Trade. 


Henry  D.  McOord,  President  New  York  Produce  Exchange. 

In  response  to  the  request  for  an  expression  of  my  views  of  the  ben- 
efits to  be  derived  from  the  reestablishment  of  reciprocity  treaties,  I 
beg  to  say  that  in  my  position  as  president  of  the  New  York  Produce 
Exchange  (a  body  of  3,000  merchants  and  business  men),  I  come  in  con- 
tact daily  with  a  great  number  of  the  representative  members,  and 
understand  their  views  pretty  well  on  questions  of  busiueSiS  importance, 
and  while  no  public  meeting  has  been  held  on  the  subject  of  restoring 
reciprocity,  I  can  safely  say  that  two  thirds  of  the  membership  are  in 
fiivor  of  it. 

The  short  trial  given  reciprocity  produced  satisfactory  results.  Dur- 
ing the  time  tlie  treaties  were  in  force  the  exjmrts  of  produce  and  pro- 
visions increased  more  than  threefold  to  all  the  countries  with  which 
such  airangements  existed,  and  u[)on  the  abrogation  of  tlie  treaties  the 
volume  of  exports  fell  back  to  their  present  small  jyroportions. 

It  is  not  only  to  the  Produce  Exchange  that  the  benefits  of  reciproc 
ity  were  made  manifest.  The  commerce  of  the  ports  in  the  South  and 
those  of  the  Gulf  were  greatly  benefited,  while  the  farmer,  the  miller, 
the  I  acker  reaped  tueir  share  of  its  benefits  through  tlui  large  increase 
in  trade  with  countries  with  which  close  and  friendly  trade  relations 
had  been  established 


ade  and 
ion  was 


lortation, 
is  it  time 

to  (>,xteu(l 
)orte(l  by 

ie  of  reci- 

fontrolled 

fdHlored 

re  11  aH  on 

\ident. 


Ir  marks 
jy  of  the 

lend  the 

sup 

rumen  t. 

2y;  our 

^ly  com- 

iiberal 


Board  of  Trade,  Tupelo,  Miss. 

Dear  Sir  :  In  reply  to  your  circular  letter  of  the  4:th  instant  1  am 
instructed  to  say  briefly: 

That  reciprocity  treaties  are  nothing  but  limited  free  trade,  and  those 
under  the  law  of  1800  were  very  favorable  to  the  foreign  commerce  of  the 
United  States.  That  it  is  due  to  high  i)rotective  tarill's  maintained  by 
our  Government  for  the  last  thirty  years  that  we  have  had  very  little 
trade  with  the  liepublics  in  the  Western  Hemisphere,  when  by  proper 
legislation  we  might  have  had  nearly  the  whole  trade. 

2.  What  was  the  efl'ect,  etc.? 

The  fact  was  to  stay  reciprocity  relations,  and  the  eflPect  was  an  injury 
to  our  trade,  of  course. 

3.  No.  Kecijuocity  trade  relations  are  wrong  in  principle.  Theosten- 
sible  i)urpose  is  for  n  psirtial  free  trade,  but  the  real  puri)ose  is,  when 
our  manufacturers  have  protection  by  a  high  tarill",  for  the  Government, 
in  the  interest  of  these  very  manufacturers,  to  open  the  doors  of  com- 
merce to  them  only. 

4.  Nothing;  absolutely  nothing.  Have  no  protective  tariff;  levy  a 
tariff'  for  revenue  only.  Of  course  we  must  have  revenue.  The  best 
and  about  the  only  diplomacy  that  will  capture  the  trade  of  a  foreign 
state  is  to  admit  as  free  of  duty  and  tonnage  as  i)ossible  the  goods  and 
vessels  of  such  foreign  state  or  nation. 

Very  truly, 

H.  0.  Medford,  Secretary. 


Northern  New  York  Miller a^  Association,  Watertonn,  N.  Y. 

Dbar  Sir:  I  writ«  you  in  order  to  urge  the  necessity  of  jtassing  at 
this  session  of  Congress  H.  K.  bill  31512.  If  this  is  not  done  the  relief 
it  might  afford  the  milling  interests  of  this  country  may  perhaps  be 


-13 


178 


RECIPROCITY    STATEME17TS. 


delayed  two  years  or  more.  It  is  needless  to  remind  you  that,  relying 
upon  an  export  trade,  the  milling  capacity  of  this  country  far  exceeds 
the  requirements  for  home  use.  Owing  to  d'scrimination  of  the  taritf 
of  the  Eastern  Hemisphere  against  flour  an  I  in  favor  of  wheat  much 
of  our  wheat  is  exported  to  be  ground  and  put  in  competition  with  the 
American  m  i  1  led  product. 

Tours,  truly,  E.  W.  Hebei'^k,  Secretary. 


Chamher  of  Commerce,  Pittsburg,  Pa. 

To  the  Ways  and  Means  Committee  of  the  House  of  Representatives, 
Washington,  D.  C: 

The  chamber  of  commerce  in  this  city,  in  response  to  your  courteous 
invitation,  desires  to  stibmit  the  following  as  its  Judgment  in  tiie  mat- 
ter of  establishing  closer  commercial  relations  between  this  country 
and  Mexico  and  the  Central  and  South  American  States,  known  as 
"  reciprocity." 

At  no  time  in  the  history  of  our  country  has  a  commercial  question 
of  equal  importance  presented  itself.  We  have  reached  a  point  in 
both  manufactures  and  agriculture  so  great  that  (call  it  overproduc- 
tion or  whatever  else  you  ]>lease)  we  can  not  consume  our  output,  and 
the  necessity  of  iinding  new  markets  is  an  imperative  one.  At  this 
juncture  of  aftairs  the  acts  of  1890,  providing  for  enlarged  traffic  with 
our  SiJanish-American  Republics,  came  into  existence  most  opportunely 
for  all  parties  in  interest. 

Orders  at  once  began  to  pour  into  this  country  for  supplies  that  had 
for  a  century  or  more  been  ])urchased  in  Euro])e.  Shipments  to  (mr 
neighboring  republics,  which  had  been  merely  incidental,  now  exjianded 
rapidly,  and  promised  ^-^  become  an  integral  part  of  our  commerce. 

At  once  a  large  and  remunerative  tralllc  came  to  our  doors,  reaching 
in  value  some  $25,0(K),000  in  exports  alone  from  our  country,  as  an  ini- 
tial effect  of  the  new  treaties. 

These  treaties  were  no  sooner  abrogated  than  an  almost  total  sus- 
pension of  commercial  relations  followed,  and  have  never  been  revived. 

llecdprocity  legislation,  winch  promised  such  excellent  results,  was 
gulled  up  by  the  roots  before  the  plan  was  fully  in  ojjcration.  No  pos- 
sible excuse  can  be  oH'ercd  for  so  wanton  and  mischievous  a  course. 
It  was  simply  partisan  politics  run  mad. 

From  a  most  reliable  source  we  have  infornuition  that  orders  from 
Central  and  South  America  to  the  city  of  Pittsburg,  in  amount  of  over 
$2()(),000  per  month,  were  canceled  .at  once  on  ''iji'^al  of  the  reciprocity 
laws,  and  a  similar  coridition  of  aftairs,  it  is  fair  to  presume,  prevailed 
in  other  manufacturing  communities. 

It  is  an  in)perafive  necessity  that  we  should  have  new  marketp  for 
our  overgrown  productions,  and  what  customers  are  more  desirable 
than  those  at  home?  None  whatever.  Next  to  our  own,  we  find  our 
America ii  neighbors  bound  ti)  ns  by  political  ties  of  the  closest  charac- 
ter, and,  Tiiore  than  all,  a  stroij'j  desire  on  the  parr  ot  the  peoi)le  to 
become  customers  tlirough  a  system  of  niciprocal  v;  .l*  U>  :\  ^arties. 

To  sum  all  up  briefly  and  not  weary  your  patSi*  ic  ,  w?  l»;»<r  '■  -,  "»mind 
you  iri  this  i)urely  commercial  question  '-that  good  <  .  si'iesf  n  {,  ood 
politico;  "  an;i  to  insure  that  prosperity  to  t'r  busint-i  h  \»n\jr  '-'o  .  the 
country  which  it  requires,  we  most  ur"'M!ti^  request  i..  '~;  this  end 
yoa  reestabliah,  wither',  delay,  such  I^wft  as  will  restOT'    :ei;iprocal 


I 
I 


i 


RECIPROCITY    STATEMENTS. 


179 


trade  relatious  with  all  nations  on  the  continents  of  North  and  South 
America. 

Added  to  this,  cheap  and  continuous  water  transportation  to  the  sea- 
board will  enable  us  to  compete  with  the  world  for  tliis  traffic,  without 
the  necessity  of  compelling  American  workingmen  to  toil  at  the  pauper 
wages  paid  European  labor. 

The  consensus  of  judgment  and  expression  of  all  commercial  bodies 
in  all  sections  throughout  the  land,  without  excei>tion,  ought  to  be  suf- 
ficient to  justify  your  speedy  and  thor<mgh  action  in  restoring  reciproc- 
ity, and  give  to  the  commerce  of  the  United  States  an  even  chance  to 
compete  with  foreign  nations. 


■    ■  hk 


Merchants'  and  Business  Men's  Association  of  Chester,  Pa. 

Whereas  a  bill  is  now  pending  in  the  House  of  Representatives  at 
Washington,  D.  0.,  looking  forward  to  the  establishment  of  reciprocal 
trade  between  this  and  other  nations:  Therefore, 

Resolved,  That  the  Merchants'  and  Business  Men's  Association  ot 
Chester,  Pa.,  do  indorse  and  sustain  the  principle  of  reciprocity. 

D.  W.  Deakyne,  President. 
M.  L.  James,  Secretary. 


IS  for 

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our 

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rties. 

lind 

It.  ood 

the 

t'ud 

rocal 


Semi-Tropic  Fruit  Exchange,  Los  Angeles,  (Ud. 

April  1, 1896. 

We  have  your  favor  of  March  4,  and  submitted  the  same  to  a  meet- 
ing of  our  directors,  held  yesterday,  March  31,  and  think  they  were 
unanimous  in  the  subjects  your  favor  outlines,  as  follows: 

First.  The  effect  of  the  reciprocity  arrangements  negotiated  by  the 
Government  with  certain  foreign  nations  under  authority  of  the  tariff 
act  of  1890  was  favorable. 

Second.  The  eft'ect  of  their  repeal  was  bad. 

Third.  We  believe  that  it  is  expedient  and  advisable  to  apply  the 
reciprocity  principle  to  future  tariff  legislation,  and  to  enact  a  general 
law  authorizing  the  President  to  negotiate  reciprocity  treaties  with 
foreign  nations  so  far  as  possible. 

Fourth.  We  believe  that  a  j)r<)tective  tariff  will  accomplish  more  in 
extending  the  export  trade  of  the  United  States. 
Yours,  truly, 

J.  A.  KEii>,  Secretary. 


The  Chamber  of  Commerce  of  Pensacola. 

PenSACOLA,  FlA-,  April  4,  1896. 

Ron.  A.  J.  Hopkins, 

Washington,  D.  0. 

Sib:  Tour  circular  letter  dated  4th  ultimo,  as  chairman  of  subcom- 
mittw  on  reciprocity  and  eonimercial  treaties,  was  submitted  to  our 
chamber  at  its  monthly  meeting,  held  on  2d  instant,  and  1  was  directed! 
to  reply  to  the  various  queries,  as  follows: 

1.  Yes;  very  favorable. 


in 


180 


RECIPROCITY   STATEMENTS. 


2.  We  think  it  was  injurious. 

3.  Yes. 

4.  If  properly  directed,  muoli  may  be  accomplished. 

Yours,  vwy  truly, 

Thos.  O.  Watson,  Secretary. 


Duluth  Jobbers^  Union,  Buluth,  Minn. 

Dear  Sib  :  Eolative  to  the  circular  of  March  4,  issued  by  the  subcom- 
mittee on  reciprocity  and  commercial  treaties,  our  answers  to  the  differ- 
ent clauses  are  as  follows: 

First.  Favorable. 

Second.  Detrimental. 

Third.  Yes. 

Fourth.  A  judicious  selection  of  consular  agents  to  disseminate  trust- 
worthy information  as  to  the  requirements  of  their  special  locality. 

W.  Buchanan,  Secretary. 


Oommerciat,  Oliib,  Velasco,  Tea. 

The  Velasco  Commercial  Club  unanirnonsly  and  most  heartily  favors 
reciprocity  with  the  South  American  j{e]»ublics,  and  believes  that  this 
would  be  of  incalculable  benetit  to  this  entire  country,  more  than  any- 
thing else  that  can  be  brough '  about,  in  a  commercial  way,  in  \  he  1 1  nited 
States  for  the  next  ftfty  y  i,rs — reciprocity  of  trade  with  the  South 
American  Bepublioe. 

W.  W.  Anderson,  Secretary. 


Armrican  '\per  MakerfC  Association,  yew  York,  N.  Y. 

Dear  Sa® :  R<*%riing  t<>  your  recent  courteous  rtn-aest  as  to  our  views 
upon  the  proposition  now  betnr©  your  honorabJ?  cnmniittee,  looking 
towani  the  T*Ne*iral)lishiaent  of  reciprocal  relations  with  other  couiitries, 
througl  <"«tt«i>  i:il  ♦•  :i  ties,  and  as  to  our  experience  and  views  as  to  tl\« 
prarrii  *>  rt'siik-  stcu  ed  to  this  country  during  the  operation  of  the  for- 
mer re<v!pr«>«ity  treaties,  1.S9L*  to  18i»4,  we  have  to  say  that  we  have  alwa^  s 
felt  th-ir,  reciprocity  comniended  itself  aa^  a  business  ])rincij>le,  and  that 
if  it  were  iriven  a  fair  trial  in  the  administration  of  our  atfairs  and 
pltMHMi  ui«n)  a  sound  basis,  and  adoi=«n«d  as  one  of  the  leading  princi- 
ples «i  tmr  Governmfflit.  it  must  s«H>t  result  in  materially  enlar^iing 
our  f"»«p'  "^  trade,  under  most  favorable  conditions. 

Ti  clearly  shown  by  the  rapad  development  of  o«r  trade  with 

tbe  >t>ii  Anierican  Republics,  whic^h  followed  the  establishinji  of 
reeipiocm  relations  with  these  countnes  in  1891,  thrrwigh  the  able 
efcrts  (rf  Secrrtary  Blaine,  and  which  grew  from  $tH).iHiWjHM),  in  1H92, 
to  $104.«M»().0OC»,  in  1H03,  and  in  which  exteiisitui  of  tr«ce,  the  paper 
industry.  whi«h  we  repre-eut,  was  very  much  benefited :  aud  its  efficacy, 
sm  a  principle,  in  dealing  with  these  countries,  was  shown  specially  by 
the  fact  that,  in  1895,  ati-  c  repeal  of  the  reciprocity  treaties,  our 
*»xportH  t(i  these  same  couuui*ai  fell  off  to  $87,000,000,  the  lowest  point 
veached  foi  many  years. 


RECIPROCITY   STATEMENTS. 


181 


Let  reciprocity  be  established  as  the  governing  policy  of  our  peo])le, 
and  easy  access  to  these  countries  be  established  by  regular  stcainship 
connections  and  proper  banking  facilities,  and  we  aie  confident  our 
trade  with  these  countries  alone  would  soon  reach  $200,(1(10,000. 

All  the  correspondence  and  reports  from  our  consular  service  in  thcvse 
countries  have  made  it  clear  that  the  peoi)]e  of  these  countries  would 
prefer  to  have  close  commercial  relations  with  this  country  rather  than 
with  European  nations. 

It  would  also  serve,  in  a  special  sense,  to  establish  more  cordial  and 
permanent  relations  between  ourselves  and  these  countries,  and  go  very 
far  to  bring  about  a  general  appreciation  of  the  many  strong  qualities 
which  have  made  our  own  country  conspicuous  as  tlie  leading  commer- 
cial Republic  of  thiH  hemisphere. 

We  sincerely  trust  that  early  steps  may  be  taken,  both  to  reestablish 
the  reciprocal  relations  with  all  South  American  Republics,  and  to 
extend  these  relations  to  the  other  great  nations  of  Europe. 

Edw.  H.  Haskell, 
k.  b.  fullkrton, 
A.  G.  Paine,  Jr., 
W.  H.  Ri  SONS,  Jr., 

J.   ^ItED   A«KEBMAN, 

Oommiitee  on  Export,  American  Paper  Makers^  Aisodiation. 


Board  of  Trade,  Ci'lMtnhuf,  OMm. 

On  motion  of  0,  D.  Firestone,  the  following  wag  adopted: 

Whereas  a  subcommittee  oi  the  Ways  aad  Means  muuitte^  of  tkm  Fifty-fenrth 
CouuroBH  has  under  consideratioa  a  bill  to  B«<-are  oMCCer  uiarketn  for  grain,  grain 
protni(;(s,  meats,  and  all  manufactnred  piodn('tB  of  th»  FTnitod  Stat«^;  and 

Where**  it  ie  for  the  best  intorestH  of  the  buHiness  nuin,  farmer,  iiufcnnfaoturer.  and 
wage  earner  to  sell  as  many  of  our  products  in  toreign  countries  as  pussiblo: 
Therefore, 

Be  if  resolved,  Thatiho  Oolnmbns  Board  of  Trade,  repreBentingSOOmombers,  heartily 
indorse  guch  a  measure,  bi]i<!ving  that  tlie  passage  of  hikIi  a  l)ill,  having  the  proper 
safeguards  thrown  around  it,  oni|Miw<'ring  the  President  of  (ho  llnitod  Staten  to 
enter  into  reciprocal  treation  with  countries  from  wliich  we  piuciiiaHc  gctods, enabling 
tliis  country  to  settle  its  balances  in  its  own  products  instead  of  paying  in  gold, 
would  be  infinitely  to  the  Hdvantatje  of  all  our  people,  and  we  earneatly  re(|iic[<f  our 
Senators  and  RepreNentatives  in  (Jongresa  to  use  their  efforts  to  secure  the  passilgi^  of 
such  a  bill. 

Resolved,  further,  That  a  copy  of  these  resolutions  be  forwarded  l)y  tk»  secretary 
of  this  Hoard  of  Trails  to  our  S«uatora  and  Kex>reiieutatives  iu  Co/igresa. 


Nortli  Adams  {Mass.)  Board  of  Trade. 

The  following  resolution  was  adopted  last  night  by  the  North  Adams 
Board  of  Trade  without  a  dissenting  voice: 

VViiereas  during  tlie  jteriod  that  reciprocity  was  practiced  in  this  country  we 
enjoyed  not  oul,y  the  most  marvelous  jnospcrity  that  over  came  to  any  country,  bnt 
our  relations  with  other  countries  were  closer,  more  amicable,  and  gave  promise  of 
broader  and  better  association; 

WhertiM!  since  a  change  of  Adininistiatiou  has  been  the  cause  of  a  suspension  of 
those  [leio^ful  and  prolitable  relations,  the  people  of  this  locality,  with  the  country 
at  large,  haveantfcred  flnanciaily  and  to  the  harm  of  agricultural  and  manufacturing 
pursuits: 

Jistolved,  That  it  is  the  opinion  of  the  N(;rtb  Adams  Hoard  of  Trade  that  Cuugress 


I 


^ 


182 


RECIPROCITY    STATEMENTS. 


i  i'l! 


ilii 


filionld  take  immediato  action  looTting  toward  tlio  rosnniption  of  reciprocity  with  all 
nations  where  mutual  advantage  will  result  most  bcnoficially  to  the  well'tire  of  the 
people. 

It  was  also  the  wish  of  the  Board  of  Trade  that  in  forwarding  the 
resolutions  to  your  committee  mention  should  be  made  of  the  fact  that 
they  were  the  expression  of  the  representative  organization  of  a  locality 
which  is  peculiarly  representative  of  both  manufacturing  and  agricul- 
tural interests.  For  it  is  doubtful  if  there  is  another  spot  in  the  United 
States  where  are  more  conspicuously  combined  a  great  variety  of  man- 
ufacturing industries  (including  the  manufacture  of  cotton  and  woolen 
goods  and  boots  and  shoes)  with  unusually  diversified  and  important 
agricultural  interests  than  this  section  of  western  Massachusetts  and 
southern  Vermont,  of  which  our  city  is  the  central  point. 

We  mention  this  in  the  hope  that  it  may  be  of  service  to  your  com- 
mittee.   A  copy  of  a  paper  containing  a  full  report  of  the  meeting  at 
which  the  resolutions  were  adopted  is  also  sent  to  you. 
Very  respectfully, 

E.  S.  Wilkinson, 
President  North  Adams  Board  of  Trade. 


The  Oommercial  Clnb,  of  Newton,  Kans, 

Sir:  In  response  to  your  inquiry  of  March  4,  we  have  to  say  that  at 
a  meeting  of  the  Commercial  Club  of  this  city,  held  April  16, 189(i,  the 
unanimous  opinion  of  the  club  was — 

1.  The  eflfect  of  the  reciprocity  arrangements  negotiated  by  the  Gov- 
ernment under  the  act  of  1890  was  highly  favorable  to  the  foreign 
commerce  of  the  United  States. 

2.  That  the  eflfect  of  the  repeal  of  the  tariflF  act  of  1894  was  very 
disastrous. 

3.  It  is  certainly  expedient  and  advisable  to  apply  the  reciprocity 
principle  to  future  tariff  legislation. 

4.  That  by  diiilomatic  negotiations  the  export  trade  of  the  United 
States  can  be  greatly  extended  and  the  conditiori  of  our  farmers  greatly 
benefited  thereby. 

J.  0.  Nicholson,  President. 


Kansas  Millers'  Association. 

Dear  Sir:  Tteferring  to  your  communication,  which  has  been  placed 
before  our  executive  committee,  beg  to  advise  as  follows,  questions  in 
order : 

1.  Very  favorable,  as  far  as  we  were  concer/ied, 

2.  Think  it  was  a  detriment  to  the  milling  industry, 

3.  Yes;  by  all  means,  I  think  the  only  and  effectual  improvement 
will  be  through  ie(af>rocity. 

4.  1  think  tliat  we  can  voice  the  sentiment  of  all  the  iissociation  that 
such  a  bill  will  do  more  to  extend  our  export  trade  and  revive  our  old- 
time  prosperity  than  any  action  taken  in  a  long  time. 

Very  respectfully, 

E.  A.  CoLBURN,  President, 


m 


BECIPBOCITT    STATEMENTS. 


183 


city 

ited 
atly 


Philadelphia  Board  of  Trade. 

Sir:  Eeferring  to  your  corninunicatioii  addtessed  to  the  president  of 
the  rhihidelphia  Board  of  Trade  under  date  of  March  4, 189(5,  in  which 
you  asked  for  an  expression  of  views  upon  four  questions  therein  stated 
relating  to  reciprocity  arrangements  and  conuuercial  treaties,  1  am 
instructed  by  tlie  executive  council  of  the  Board  of  Trade  to  answer  tlie 
questions  as  follows: 

1.  Was  the  eifect  of  the  reciprocity  arrangements  negotiated  by  the 
Government  with  certain  foreign  nations  under  the  authority  of  the 
tariff  act  of  1890  favorable  or  unfavorable  to  the  foreign  commerce  of 
the  United  States? 

Answer.  The  statistics  of  tlie  United  States  Government  show  that 
the  reciprocity  legislation  as  enacted  in  the  McKinley  tariff  act  pro- 
duced a  most  favorable  effect  upon  our  foreign  trade. 

2.  What  was  the  effect  of  their  repeal  by  the  tariff  act  of  1894? 
Answer.  Most  disastrous.    Our  export  triule  to  the  countries  which 

had  reciprocal  treaties  has  been  radicially  re( need. 

3.  Is  it  expedient  and  advisable  to  apply  the  reciprocity  principle  to 
future  tariff"  legislation,  and  to  enact  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  foreign  nations,  so  far 
as  possible? 

Answer.  The  reenactment  of  the  McKinley  tariff  act  with  its  reci- 
procity clauses  would  bebenefu-ial  to  the  country. 

4.  What  can  be  accomplished  by  diplomatic  negotiations  in  extend- 
ing the  export  trade  of  the  United  States? 

Answer.  Nothing  desirable  without  such  legislation  as  is  stated  in 
the  foregoing. 

I  remain,  sir,  yours,  truly, 

W.  E.  TucKEE,  Secretary, 


The  Commercial  League,  Fort  Smith,  ArJc. 

Dear  Sir:  At  a  meeting  of  the  Fort  Smith  Commercial  League,  held 
last  night,  your  reciprocity  bill  now  befoie  Congress  was  fully  dis- 
cussed and  unanimously  indorsed.  I  was  directed  to  inform  you  of  the 
action  of  tlie  league,  and  also  to  request  the  Senatr>rs  and  Representa- 
tives in  Congress  from  Arkansas,  in  the  name  of  the  league,  to  aid  you 
all  they  can  in  securing  the  early  passage  of  the  bill. 
Youi'S,  very  truly, 

K.  H.  Adair,  Secretary. 


laced 

ns  in 


iont 

I  that 
dd- 


ht. 


Boston  Chamber  of  Commerce. 

Dear  SiE:  JTour  valued  favor  of  March  4,  requesting  the  opinion  o^ 
this  body  on  the  matter  of  reciprocity  arrangements  and  commercial 
treaties,  has  been  duly  cousidt^red  by  our  board  of  directors,  and  I  am 
instructed  by  them  to  reply  to  your  inquiries  as  follows: 

1.  In  the  opinion  of  the  board,  the  effect  of  the  reciprocity  arrange- 
ments negotiated  by  the  Government  under  the  authority  of  the  act  of 
1890  was  fiivorable  to  the  foreign  commerce  of  the  United  States. 

2.  That  their  repeal  resulted,  in  many  cases,  in  the  severance  of  com- 
mercial relations  that  liad  been  entered  into  under  the  influence  of  the 
reciprocity  treaties,  and  wm,  therefore,  a  diatiuct  injury  to  trade. 


184 


RECIPROCITY    STATEMENTS. 


3.  In  the  opinion  of  the  board  it  is  expedient  and  advisable  to  apply 
the  reciprocity  principle  to  future  tariff  legislation. 

4.  It  is  the  opinion  of  the  board  that  the  foreign  commerce  of  the 
United  States  can  be  greatly  furtheretl  and  extended  through  the 
efforts  of  our  diplomatic  representatives  abroad,  and  that,  when  assisted 
by  reciprocity  arrangements,  our  representatives  can  render  much  more 
efficient  service  in  this  respect  than  when  no  such  arrangements  exist. 


I  am,  sir,  very  respectfully,  yours. 


E.  G.  Preston,  Htcretary. 


I 


The  Minneapolis  Board  of  Trade. 

Whereas  the  Subcommittee  of  the  Committee  on  Ways  and  Means  of 
the  House  of  Representatives  at  Washington,  D.C.,  desires  an  expres- 
sion of  the  views  and  opinions  of  the  commercial  and  industrial  organi- 
zations of  the  United  States  regarding  the  effect  of  the  reciprocity 
arrangements  negotiated  under  authority  of  the  tariff  act  of  1890,  the 
effect  of  its  re])eal  in  1894,  and  the  advisability  of  ai)i)lying  the  reci- 
procity principle  to  future  tariff"  legislation :  Tlierefore,  be  it 

Renolved  by  the  Minneapolis  Board  of  Trade,  That  it  is  the  sense  of 
this  board  that  the  effect  of  the  reciprocity  arrangements  by  the  Gov- 
ernment of  the  United  States  with  foreign  nations  fully  justified  the 
views  of  the  eminent  but  now  lamented  statesman  who  gave  them 
birth. 

That  we  believe  the  reciprocity  principle  may  in  many  cases  be  wisely 
ai)plied  to  further  legislation. 

That,  above  all,  we  believe  a  national  nonpartisan  tariff  commission 
should  be  established  and  constantly  maintained,  whose  duty  it  should 
be  to  make  most  careful,  systeniatic,  and  thorough  study  of  the  whole 
tariff"  question  Avith  a  view  to  the  gathering  of  such  information  as  will 
enable  it  to  recommend  to  Congress  the  enactment  of  tariff"  laws  based 
upon  scientiflc  and  righteous  princiiiles. 

We  also  believe  a  nonpartisan  national  finance  commission  should 
be  established  and  constantly  maintained,  whose  duty  it  should  be  to 
thoroughly  study  the  currency  and  tinance  systems  of  the  different 
nations  with  a  view  to  the  making  of  such  recommendations  to  Con- 
gress as  shall  result  in  the  enactment  of  laws  which  shall  secui-e  to 
this  country  a  thoroughly  sound  but  flexible  currency  and  a  system  of 
tinance  which  shall  not  be  subject  to  manipulation  by  speculators  or  too 
njuch  dependent  upon  the  judgment  of  persons  who  n)ay  be  chosen  or 
ai)pointed  to  Government  offices  for  which  they  may  be  untitted  because 
of  natural  disqualilications  or  previous  inex])evience. 

Furthermore,  we  dei)recate  and  desire  to  strongly  denounce  the  un- 
business-like  an<l  thoroughly  unpatriotic  methods  apparently  pursued 
by  many  members  of  both  Houses  of  late  Congresses  who  have  seemed 
willing  to  make  and  unmake,  almost  at  random,  laws  which  seriously 
affect  the  business  interests  of  the  entire  country — all  in  order  that  the 
interests  of  themselves  or  their  respective  parties  may  be  the  better 
subserved. 

We  believe  the  time  has  come  when  the  people  of  this  country  should 
assert  with  no  uncertain  sound  that  their  representatives  in  Congress 
should  be  less  subservient  to  party  behests  and  more  willing  to  concede 
reasonable  diff'mences,  in  order  that  harmony  may  prevail  and  this 
nation  be  given  such  sound  and  business-like  legislation  as  shall  main- 
tain its  position  at  the  head  of  the  nations  of  the  earth. 


RECIPROCITY    8TATEMEKT8. 


185 


Resolved,  That  a  copy  of  this  resolution  be  sent  to  the  chairman  of 
the  Subcommittee  of  the  Committee  on  Ways  and  Means,  antl  also  to 
the  Senators  and  Congressmen  from  Minnesota,  as  well  as  to  such 
boards  of  trade  or  commercial  bodies  as  the  president  and  secretary  of 
this  board  shall  see  fit. 
EespectfuUy  submitted. 

J.  U.  Barnes,  Chairman. 
J.  T.  Wyman. 

A.  E.  McGiLL. 
O.  E.  Naeole. 

B.  J.  Kelsxy. 


The  National  Live  Stock  Exchange,  Chicago. 

Dear  Sir:  I  have  the  honor  in  behalf  of  the  executive  committee  of 
this  exchange,  in  response  to  your  inquiries  of  March  23,  to  hand  you 
herewith  a  copy  of  the  questions  asked  by  you,  and,  immediately  follow- 
ing, the  answers  of  this  exchange,  as  far  as  possible,  thereto. 

1.  Give,  if  possible,  the  present  total  number  of  beef  cattle  in  the 
United  States  comi)ared  with  that  of  six  years  ago,  and  the  decrease 
and  increase  annually. 

Answer: 


Year. 


Kumber  of 

cattle. 


Inorea8e+ 

or 
deoTMue— . 


1891. 
1892. 
1893. 
1894. 
1895. 
1896. 


86, 876, 048 
37, 651, 230 
3C,  954, 190 
36, 608,  168 
34, 364,  216 
32, 085, 409 


+  V5, 591 
— 1,  697,  043 
+  653, 972 
—2,  24;;,  052 
—2, 278, 897 


2.  What  is  their  value  per  head  compared  with  six  years  ago,  and 
how  has  that  value  on  the  ranch  varied  during  the  last  six  years? 

Answer.  According  to  the  trjide  paper  of  this  market,  The  Daily 
Drovers'  Journal,  export  cattle  weigh  from  1,300  to  1,500  alive  on  an 
average.    Such,  cattle  sold  in  the  Chicago  market  as  follows: 


Per  100  pounds. 

1890 $3.75'®$5.75 

18!)1 3.70®  6.25 

1892 3.90'a>  5.60 


Per  100  pounds. 

1893 $4.00®$5.45 

1894 3.75®  6.25 

1895 3.80®  5.50 


3.  What  causes  t  ther  than  the  disturbance  of  our  foreign  trade  by 
the  repeal  of  the  reciprocity  treaties  and  the  restrictions  imposed  by 
foreign  countries  have  affected  the  profits  and  the  growth  of  the  cattle 
trade? 

Answer.  The  general  depression  which  has  prevailed  in  all  lines  of 
business  during  the  past  two  years  and  the  comparatively  low  prices 
for  other  commodities  has  had  something  to  do  with  the  decline  in 
prices  for  cattle  and  beef,  but  we  attribute  the  main  trouble  to  the 
repeal  of  reciprocal  relations. 

4.  Give,  if  possible,  the  number  of  cattle  annually  exported  on  the 
hoof  during  the  last  six  years  by  countries. 


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186 

Answer: 


EECIPEOCITY   STATEMENTS. 


Ymt. 


1890 
18B1 
1892 
1893 
1894 
1895 


To  Unitad 
Kingdom. 


360, 580 
345, 7P7 
378, 167 
280,990 
346, 734 
305,068 


To  Frano«. 


To  Ger- 
many. 


To  Holland 

and 

Belgiom. 


369 

S,885 

845 

None. 

5,184 

10,538 


3,977 
5,223 
4,643 
419 
3,069 
8,436 


7,263 

7,303 
8,423 
1,440 
1,865 
4,780 


To  other 
conntries. 


22,6^8 
10, 471 
7,529 
i,2Si 
8,426 
4,  £00 


Total. 


394, 836 
874, 679 
394,  607 
287,  094 
359, 278 
331, 722 


5.  Explaiu  the  variations  in  export  prices  for  cattle  on  the  hoof  dur- 
ing the  last  six  years. 

Answer.  The  variations  in  prices  of  export  cattle  was  largely  caused 
by  the  prices  paid  in  Loudon  for  same,  which  were  as  follows: 

1890 ..  Si-®  13  0.  (sinking  offal) 

1891 11    'a  13ic.  ^sinking  offal) 

1892 lei's/  14|o.  (sinking  offal) 

1893 10    'S)  14  0.  (sinking  offal; 

1894 Si®  12Jo.  (Binlnng  oiT  1) 

1895 9   <»  13ic.  (sinking  offal) 

See  also  answer  to  second  interrogatory. 

6.  Has  there  been  any  change  in  the  cost  of  transportation  and  other 
expenses  of  getting  them  to  market?  The  object  of  these  questions  is 
to  ascertain  the  value  of  American  cattle  xn  the  market  of  the  consumer 
today  compared  with  that  of  six  years  ago. 

Answer.  This  is  a  question  that  it  is  impossible  for  us  to  answer  from 
any  data  in  our  possession,  as  there  have  been  numerous  changes  in 
freight  rates  and  undoubtedly  a  great  many  private  contracts  with 
transportation  companies  of  which  we  have  no  definite  knowledge. 

7.  Give,  if  possible,  the  number  of  cattle  annually  slaughtered  in  this 
country,  with  the  proportion  sold  in  the  carcass  and  the  proportion 
cured  and  packed. 

Answer.  The  (Government  reports  for  the  calendar  year  1894  show  that 
there  were  36,608,168  cattle,  other  than  she  cattle,  in  the  United  States. 
The  Cincinnati  Price  Current  for  th-a  same  calendar  year  shows  that 
there  were420,835  head  of  cattle  exported  alive.  It  is  i)roper  to  estimate 
that  other  cattle  besides  beef  cattle  would  be  18,090,000  head,  leaving 
the  total  number  of  beef  'jattle  in  the  United  States  of  18,0!)0,(K)0  head, 
which  were  slaughtered  in  this  country  in  the  calendar  year  of  1894, 
which  at  an  average  of  700 pounds  to  the  carcass  would  give  12,663,000,- 
000  pounds,  of  which  204,314,960  pounds  were  exported  in  the  carcass, 
which  would  leave  12,458,685,040  pounds  of  beef,  of  which  64,645,166 
puands  were  cured,  packed,  and  exported,  and  59,524,794  pounds  were 
canned  and  exported,  leaving  12,334,515,080  pounds  of  fresh,  cured, 
packed,  and  canned  meat  for  home  consumption  for  the  calendar  year 
1894.  In  this  answer  we  have  necessarily  had  to  make  an  estimate  of 
some  of  the  figures  submitted,  hence  only  furnish  figures  for  one  year. 
The  estimates  used  would  hold  equally  good  for  any  other  year,  and  the 
results  of  any  particular  year  could  readily  be  ascertained  by  using  the 
foregoing  estimates  in  connection  with  the  Federal  statistics  for  such 
year. 

8.  The  amount  of  capital  and  number  of  men  employed  and  the 
amount  of  money  disbursed  annually  in  curing  and  packing  beef  and 
other  preserved  meats! 

Answer.  This  question  we  consider  as  being  foreign  to  the  live-stock 
business,  and  we  are  unable  from  data  in  our  possession  to  formulate  a 
comprehensive  answer. 


EECIPROCITY    STATEMENTS. 


187 


9.  The  proportion  of  cured  and  preserved  meats  exported  and  the 
proportion  consumed  in  the  United  States? 

Answer.  Our  answer  to  interrogatory  No.  7  gives  the  figures  for  cured 
and  preserved  meats  exported  We  have  no  statistics  at  hand  show- 
ing the  amount  of  preserved  and  cured  meats  consumed  in  tliis  country. 

10.  The  proportion  of  beef  in  the  carcass  exported  and  die  proi)or- 
tion  consumed  in  the  United  States? 

Answer.  We  respectfully  refer  to  our  answer  to  interrogatory  No.  7 
for  an  answer  to  this  question. 

11.  What  eflfect  did  the  reciprocity  arrangement  have  upon  tlie  export 
trade  in  both  fresh  and  cured  and  packed  beef?  Please  give  this  infor- 
mation by  countries  as  far  as  possible. 

Answer: 

Exporii  of  fresh  beef  to  countriea  indicated,  compiled  from. the  United  States  Treasury 

statistics. 


T-ar. 

To  United 
Kingdom. 

To  France. 

To  Ger- 
many. 

To  Holland 

ai'tl 

Belgium. 

To  othor 
countries. 

Pounds. 

2,202,617 

1,589,180 

1,461,360 

383,  631 

669, 466 

272, 561 

ToUls. 

1890 

Pounds. 
171,032,679 
102.466,458 
ri9,103,267 
206,011,093 
193,331,292 
190, 736, 186 

Povnds. 
Jsone. 

None. 
None. 
None. 
None. 
None. 

Pounds. 
None. 
None. 
None. 
None. 
1,066 
239, 760 

Pounds. 
2,400 
None. 
None. 
None. 
None. 
None. 

Pounds. 
173,  237,  596 
194,045,638 
220,564,617 
206,  294,  724 
19:i,  891,  824 

1891 

1802 

1893       

1894 

1895 

191, 323,  487 

12.  What  was  the  falling  off  in  the  trade  and  the  general  result  of 
the  repeal  ? 

Arswer.  The  falling  off  in  he  trade  is  indicated  in  our  answer  to  the 
preceding  interrogatory,  and  resulted  in  a  demoralizing  efl'ect  upon  our 
industry  by  forcing  our  surplus  on  already  overburdened  markets, 
largely  owing  to  the  prohibitive  edicts  of  certain  foreign  countries 
placed  thereon. 

13.  Please  give  a  brief  summary  of  the  obstacles  that  exist  to  the 
extension  of  our  export  trade  in  both  fresh  and  cured  and  packed  beef 
by  countries.  What  restrictions  are  offered  in  Germany,  in  England, 
in  France,  etc.! 

Answer: 

Oermany. — Imperial  order  prohibiting  the  importation  of  oattU  and  fre$h  beef  from  the 
United  States — Proclamation  of  the  senate — Proclamation  relating  to  the  prohibition 
of  the  importation  from  America  of  living  beef  cattle  and  fresh  beef. 


the 
and 


[TranslAtion.] 

No.  111.]  Saturday,  October  S7,  1894. 

Thi>  imperial  chancellor,  on  the  Btrength  of  paragraph  4,  pa^e  2,  of  the  impoiial 
law  ot  Juno  23,  1880,  cocoerning  protection  against  and  8upi»rc.sMioii  of  cattle  <liH- 
easus,  aftt^r  the  arrival  here  of  two  Hbipiiicnts  of  American  <  attle  containing  Kick 
animals,  and  after  the  certiflcatiou  by  the  imperial  health  ollice  that  the  Bickne.'<.s  is 
"  Texas  I'ever,"  lias  ordered  the  prohibition  of  the  iuiportutiou  fVom  America  of  living 
beef  cattle  and  fresh  meat.  On  the  strength  of  paragru))h  7  of  th(>  said  law  it  is 
therefore  ordered  that — 

The  importation  of  living  beef  cattle  and  fresh  beef  from  AmcricA  in  forbidden. 
The  importation  will,  nevertheless,  be  permitted  of  such  ehipments  as  have  left 
America  bei'ore  and  including  the28t.h  instant.  The  cattle  the  importation  of  which, 
according  to  the  above  provision,  is  still  to  be  permitted  must,  however,  be  slaugh- 
tered at  once  in  the  slaughterhouse  at  this  place. 

Oft'enses  against  this  prohibition  will,  according  to  paragraph  66  of  the  imperial 
law  ooncerniug  protection  ag^iinst  and  suppresion  of  cattle  diseases,  be  puniNh<Ml 
with  •  fine  op  to  150  marka,  or  arrest,  in  so  far  aa  no  greater  penalty  ia  prescribed 


188 


RECIPROCITT    STATEMENTS. 


by  law.    In  addition  to  this  punishment,  the  cattle  or  frosh  meat  imported  in  con 
traveution  to  this  prohibition  will  be  confiscated,  whether  the  cattle  or  meat  belong 
to  the  oflfendfr  or  not. 
Given  at  the  session  of  the  senate,  Hamburg,  October  26, 1894. 

France. — Miniaterial  order  of  February  S4,  1895,  prohibiting  the  importation  of  cattle 

from  the  United  States. 

[From  the  Journal  Officlel  d«  U  RApabliqne  Fran9aiae,  F«bruarj  2fi,  1895,  p.  1074.]      ; 

The  Minister  OP  Agriculture: 

Pursuant  to  the  law  of  July  21,  1881,  on  the  sanitary  polio*  rej^ulations  regarding 
animals,  and  the  decree  of  Jure  22,  1882,  relating  to  the  regulations  for  the  public 
administration  for  tlie  observance  of  the  same; 

In  view  that  there  aie  many  ontagious  diseases  which  do  not  exist  in  France  but 
prevail  among  the  cattle  in  the  United  States  of  America,  coses  having  been  found 
among  animals  imported  from  that  country  into  Europe,  it  is  only  reasonable  that 
ineusureB  be  taken  to  prevent  the  introduction  of  these  diseases  into  our  territory, 
and  having  the  opinion  of  tlie  consultative  committee  on  epizootics,  and  on  the 
report  of  the  counsellor  of  state,  director  of  agriculture — 

Jiesolred: 

AuTiCLK  1.  The  importation  into  France  and  the  transit  of  cattle  coming  from  the 
United  States  of  America  over  our  land  and  sea  frontit-rs  is  interdicted  until  other- 
wise ordered. 

However,  cattle  sent  from  the  United  States  before  February  24,  1895,  shall  be 
admitted  providing  they  be  landed  under  the  conditioufi  prescribed  by  law  for  the 
admission  of  foreign  cattle. 

Art.  2.  Prefects  of  departments  are  charged,  each  aa  it  eoncems  him,  with  the 
execution  of  this  docisiou. 

Done  at  Paris,  F<  l)iuary  24,  1895. 

Gadaud. 


fd 


Belgium, — Miniatertal  order  of  Decemhe.'  i9,  1894,  prohiUting  the  importation  of  oattle 

from  the  United  Statc4. 

IXranslatlon.] 

Ministry  of  Agriculturk,  Industry,  Labor,  and  Public  Works. 
Bovine  auimnls  coming  from  the  United  States  of  America.    Importation  prohibited. 

The  minister  of  agriculture,  industry,  labor,  and  public  works,  considering  the 
law  of  the  30th  of  December,  1882,  on  the  sanitary  police  of  domestic  auinials,  as  well 
as  the  general  administration  regulation  of  the  'JOth  of  September,  1883,  adopted  in 
execution  of  this  law;  considering,  again,  themini8terialorderoftlie2oth  of  August, 
]H!I4,  subjecting  to  a  quarantine  of  forty-five  days  animals  of  the  bovine  species 
shipped  from  the  United  States  of  America,  contagious  pleuro-pneiimonia  having 
been  discovered  among  animals  of  this  origin;  considering  tliat  the  sain«  contagious 
affection  was  discovj'ied  on  the  25th  of  December,  1894,  in  two  animals  shipped  from 
the  aforeflaid  country,  and  disembarked  at  Antwerp  on  the  17tli  day  of  the  same 
month;  consideriim  the  advice  of  the  veterinary  inspection  service,  orders: 

Artici.k  1.  The  importation  and  transit  of  animals  of  the  bovine  species  coming 
from  the  United  States  of  America  are  interdicted  until  ulterior  disposition.  The 
direct  transit  of  these  animals  can  be  made  by  railway  only,  and  in  sealed  wagons, 
and  without  being  unloaded  en  route. 

Art.  2.  Hy  excei)ti(mal  measure  animals  of  the  origin  indicated  in  the  preceding 
article  i:j  course  of  shipment  before  the  2d  day  of  .January,  l^Of),  may  be  disem- 
barked at  Antwerj),  under  the  condition  of  being  subjected  in  the  port  of  that  city 
to  a  fjuarantine  of  lorty-ttve  days  at  least,  or  may  be  directed  toward  a  public 
slaughterhouse,  to  be  there  butchtired  in  the  delay  provided  for  by  the  regulation 
dispo8iti(ms. 

Art.  3.  The  order  above  referred  to  of  the  7th  of  December,  1894,  is  repei-led.       - 

Lkon  UU  liRUYN. 
huVtitiKLB,  Becember  1S9,  1894, 


RECIPEOCITY   STATEMENTS. 


189 


Denmark. — Decree  regarding  the  prohibition  of  the  importation  of  live  cattle  and  fresh 

w«at«  of  the  same  frvm  America. 

[Translation.] 

With  reference  to  the  act  of  April  14,  1893,  No.  14,  regardinpr  contagioua  diseaseH 
amori]^  domestic  animala,  in  order  to  prevent  the  importation  ol  Texas  fever,  which 
is  prevalent  in  America,  it  ia  hereby  prohibited  to  import  into  this  country  from  the 
continent  named  anj  live  cattle  cr  fresh  mesits  of  the  same.  This  decree  does  not 
apply  to  meats  pi.cked  in  hermetically  sealed  cana.    The  decree  of  February  14, 1879, 

Erohibiting  the  importation  of  live  cattle  from  the  United  States  of  America  is 
ereby  abrogated.    These  regulations  to  take  effect  at  once.     Which  is  hereby  pro- 
claimed for  uj»  information  and  guidaao*  of  all  'concerned. 


HOKKING. 


Department  of  tMk  Intebior,  November  19,  1894. 


14.  What  specific  recommendations  have  the  cattle  trade  to  make 
concerning  legislation  or  diplomatic  negotiations  for  the  removal  of  these 
restrictions?  What  can  Congress  and  the  Secretary  of  State  do  to 
extend  your  trade? 

Answer.  If  our  exe(!utive  and  diplomatic  xepartments  have  not  the 
power  to  negotiate  with  foreign  countries  to  remove  unnecessary  restric- 
tions and  place  our  commerce  on  a  reciprocal  basis,  we  do  most  sin- 
cerely urge  that  Congress  at  its  present  session  will  enact  laws  ena- 
bling them  to  nrgotiate  and  inaugurate  such  reciprocal  relations,  or  in 
the  event  of  failure  to  retaliate  in  such  manner  as  to  them  seem  most 
wise  and  expedient. 

15.  The  committee  would  be  very  much  interested  in  knowing,  if 
possible,  how  much  British  capital  is  invested  in  American  beef  and 
pork  industries,  and  whether  such  investors  could  possibly  be  intiuen- 
tial  in  securing  a  removal  of  the  discriminations. 

Answer.  There  is  no  doubo  that  there  is  a  large  amount  of  Euiopean 
capital  invested  in  American  beef  and  pork  and  live-stock  industries, 
and  no  doubt  their  influence  couht  be  secured  in  an  endeavor  to  remove 
any  unm'cessary  restrictions,  but  we  would  consider  it  inadvisable  to 
solicit  their  influence  before  placing  ourselves  in  sach  a  position  through 
reciproc/ity  as  would  commend  our  cause  to  them  an<l  enlist  their 
support. 

Very  respectfully,  0.  W.  Baker, 

Secretary. 


I  'ft 

I I 


Rtt-     -' 


APPENDIX  G^. 


ADDRESSES  BEFORE  THE  COMMITTEE  ON  WAYS  AND  MEANS  BY 
REPRESENTATIVES  OF  THE  LIVE  STOCK  INDUSTRY. 


191 


4.       f    ! 


4  4 


■ft 


Ii.rii 


m 


wtrntm 


s; 


fc  \  ♦  ■  ii.    »    i  '  i'     *  /  . 


i 

THE   LIVE-STOCK   INDUSTRY. 


STATEMENT  OF  MR.  S.  W.  ALLERTON,  OF  CHICAGO. 

Mr.  Chairman  and  Gentlemen  of  the  Committee:  Wo  come 
here  to-day  to  talk  to  you  as  nonpartisans  and  as  business  men  in  the 
interest  of  the  live  stock  growers  and  the  farmers.  IJight  here  it  might 
be  well  to  state  who  we  represent  and  what  business  we  are  in.  Jn 
1800  the  great  stock  yards  of  Chicago  were  organized.  Men  came  there 
from  all  parts  of  the  country  to  sell  live  stock.  Intelligent,  farsighted 
men  readily  saw  that  Chiciigo  was  to  be  the  live-stock  center  of  tlie 
Northwest.  A  live-stock  oxclmnge  was  organized,  to  meet  every  week, 
and  much  cattle  for  foreign  and  other  shipment  came  to  Chicago.  Later 
on  there  was  organized  an  association  called  the  "Xational  Live  Stock 
Exchange,"  with  meetings  once  a  year,  for  the  benelit  and  in  the  inter- 
est of  the  live-stock  growers  of  Chicago,  Kansas  City,  Sioux  City,  IMtts- 
burg,  and  many  other  cities  interested  in  this  industry.  The  member- 
ship was  some  1,800,  and  they  meet  annually  to  discuss  matters  relating 
to  live  stock.  At  the  last  meeting  of  the  exchange,  in  Decendjor,  it 
was  decided  unanimously  that  the  National  Live- Stock  Exchange  should 
appoint  a  committee  to  come  to  Washington  and  talk  to  this  committee 
in  behalf  of  reciprocity  in  the  interest  of  the  live-stock  growers. 


iU 


^1 


I,    n 

1  n 


effect  of  the  reciprocity  arrangements. 

After  reciprocity  was  passed  and  became  a  law  our  shipments  abroad 
were  much  larger  than  they  are  now,  being  distributed  throughout 
England,  Belgium,  Germany,  France,  Sweden,  and  Norway.  After 
reciprocity  was  rei)ealed  our  shipments  steadily  decreased,  and  have 
experienced  a  considerable  falling  off  ever  since. 

After  reciprocity  was  repealed  Germany  and  France  set  uj)  that  our 
cattle  were  diseased,  and  prohibited  us  from  shipping  them  into  theis 
countries.  The  result  w-as  that  we  were  able  to  ship  our  cattle  and 
beef  to  England  only,  the  only  country  of  any  consequence  open  to  us, 
which  nnule  a  lo«s  of  over  two  and  a  half  million,  because  we  were 
obliged  to  sell  in  England  at  2^  cents  per  pound,  which  did  not  ])ay  for 
the  labor,  trouble,  and  expense;  and  our  shi])ments,  also,  to  foreign 
parts  were  (»f  necessity  greatly  reduced.  The  cattle  in  America  were 
also  greatly  reduced  in  price,  and  have  gone  down  $L50;  because,  for 
example,  take  a  country  consuming  10,000  head  of  cattle,  and  force 
11,000  head  of  cattle  u[)on  that  market,  and  you  will  not  got  as  much 
for  your  11,000  as  you  would  have  gotten  for  your  10,000. 

Keciprocity  eiuibled  us  to  work  off  our  surplus  meat  and  find  a  ready 
market  for  our  live  stock.  IJut  now  the  farmers  in  this  country  are  in 
great  distress  in  consequence  of  all  these  things. 

Of  course,  all  of  you  gentlemen  probably  know  more  about  reciproc- 
ity than  we  do,  but  I  will  state  one  argument  just  here  in  favor  of 
having  reciprocity  restored.  You  say  it  will  make  cheai)  sugar.  Can 
you  do  anything  greater  and  better  than  to  have  cheap  sugar  ior  the 
people?    Because  the  bill  of  the  laboring  man  for  groceries  is  one-half 

H.  Kep.  22G3 13  193 


194 


RECIPROCITY    STATEMENTS. 


t!ii 
-  n' 

Ui 


:,^iii  i 


sugar.     (lO  to  any  fanner  iuul  ask  liim  to  give  you  information  about 
his  grocery  bill,  and  lie  will  tell  you  that  one  half  of  it  is  for  sugar. 

Germany  and  Frani;e  prohibited  our  cattle  on  the  pretext  that  they 
were  diseased.  One  of  our  objects  in  coming  here,  gentlemen,  was  to 
convince  you  that  our  cattle  were  healthy  and  thattliis  prohibition  on 
account  of  disease  was  only  a  pretext.  In  line  with  that  object  I  will 
cite  an  example:  I  have  been  shipping  cattle  for  twenty  years.  For 
the  last  three  years  1  have  lost  only  one  steer  from  disease.  I  lost 
twenty  or  more  the  other  day  from  drowning,  but  that  is  not  pertinent. 
The  insurance  on  cattle  used  to  be  $10  ])er  head,  while  the  insurance 
to-day  is  only  G8  cents  per  head,  which  shows  that  our  cattle  are 
healthy.  They  were  never  healthier,  and  oidy  England  is  open  to  us 
now,  because  they  say  our  cattle  are  not  healthy. 

RESTRICTION  AGAINST  AlVIERICAN  CATTLE. 

Mr.  Grosvenor.  Some  time  after  tliis  reciprocity  section  was  adopted 
as  a  law  England  made  some  further  restriction  in  regard  to  cattle. 

Mr.  Allerton.  The  restriction  England  made  originated  from  the 
idea  that  our  cattle  had  pleuropneumonia,  I  was  in  England  at 
the  time,  and  therefore  know  all  about  it.  This  v;as  almost  totally 
confined  to  snuill  places. 

Mr.  Grosvenor.  I  found  it  in  force  at  Glasgow  in  1881.  The  cattle 
must  be  killed  in  ten  days  after  the  time  the  steamer  is  sighted  at  the 
l)ort  of  entry. 

Mr,  Allerton.  I  think  ten  days  is  long  enough.  Keeping  them  after 
ten  days  is  very  ex])ensive.  They  would  run  down  fast.  I  believe  if 
reciprocity  was  restored  and  the  markets  of  the  world  opened  to  Amer- 
ican ])roducts  that  it  would  not  only  relieve  the  Government,  but  would 
also  relieve  the  farmers.  The  farmers  were  never  in  so  bad  a  coiulition 
as  they  are  now,  with  oats  at  15  cents,  corn  at  20  cents,  aiul  other  things 
in  proportion. 

Mr.  Tawney.  What  countries  with  which  we  had  reciprocity  arrange- 
ments did  you  ship  cattle  to  during  the  duration  of  those  arrangements? 

]\lr.  Allerton.  We  shijiped  to  the  countries  of  England,  Germany, 
France,  Switzerland,  Ik'lgium,  and  some  to  Norway  aiid  Sweden. 

Mr.  DoLLiVEK.  Were  there  any  shipped  to  Spanish  countries? 

Mr.  Alli:rton,  Yes,  sir;  some  were  shipped  to  Spain. 

Mr.  DoLLiVER.  What  I  want  to  know  is,  were  any  sent  to  South 
America? 

Mr.  Allerton.  No  dressed  beef;  but  live  stock  was  shipped  from 
New  York  when  we  had  reciprocity. 

Mr.  DoLLiVER.  Do  you  know  anything  about  any  regulations  pro- 
hibiting the  importation  of  our  cattle  into  Cuba? 

INIr.  Allerton.  I  do  not  know.  I  have  not  sold  any  there  since 
reciprocity  was  repealed.  J  uiulerstand,  however,  a  great  many  pur- 
chased cattle  to  go  from  New  York.  What  they  have  done  I  can  not 
tell  you.    I  have  not  been  able  to  sell  any  there  myself. 

ADVANTAGES  OF  RECIPROCITY  TO  THE  FARMERS. 

The  Chairman.  You  started,  when  interrupted,  to  state  something 
about  reciprocity  benefiting  the  farmers.  I  would  like  tp  hear  what 
you  have  to  say  about  that. 

Mr.  Allerton.  About  the  benefit  of  reciprocity  to  the  farmer.  I 
think  we  were  paying  when  reciurocity  was  a  law  about  5^  to  (i  cents 
for  extra  cattle.  We  have  been  paying  since  that  time  from  4  to  4J 
cents  for  cattle  weighing  about  l,.'50b  pounds,  which  was  a  loss  to  the 


« 


UECirUOClTY   STATKMENTS. 


195 


irmaiiy, 
1. 

(? 

South 
}(l  from 


fanner,  bocanso  a  weli-niatnrod  steer  will  cost  the  farmer  more  tliau 
that;  it  will  cost  him  .">  cents,  and  consequently  it  is  a  loss  if  s,,jl(l  for 
less. 

Mr.  DoLLiVER.  Do  you  attribute  this  to  the  falling  otf  in  the  Euro- 
pe'Mi  markets i? 

Mr.  Ali.ebton.  Yes,  sir.  For,  as  I  stated  before,  if  yon  force  11,000 
head  of  cattle  upon  a  market  re(|uirin<;"  only  10,0(10,  the  U,0(>0  nonld 
bring  no  more  and  i)r(>bably  not  as  mucli  as  the  10,000. 

Mr.  DoLLiVER.  Have  you  consitlered  the  nnniber  of  idlers  we  have 
had  in  our  midst  during  the  last  two  or  three  years? 

Mr.  Aller  TON.  That  has  not  had  much  ellect.  1  will  give  you  au 
example,  because  in  New  England  we  sold  very  nearly  as  nniiiy  cattle 
in  1805  as  in  1<S!)2.  You  kimw  it  is  a  fact  that  New  l^^ngland  only  \no- 
duces  enough  to  last  her  people  about  nineteen  days.  They  have 
bought,  1  think,  on  an  average  of  25,000  cattle.  New  r'ngland  has 
been  one  of  the  ;"rreat  markets  for  tlie  i)roducts  of  the  Western  country. 

JVlr.  DoLLiVEU.  What  means  iiave  you  for  ascertaining  this? 

]\Ir.  Allerton.  1  go  to  the  board  of  trade  where  the  reports  are 
made  out.  I  tluiu  add  together  the  foreign  sliipuients  and  deduct  them 
from  the  total  production.  That  is  probably  as  accurate  as  can  be  ob- 
tained and  are  close  rij;ures.  We  take  these  reports  from  the  board  of 
trade  and  we  select  from  them  the  numbers  of  beef  shii)ments  that  go 
to  l^vurope  and  compare  these  shipments  by  years  and  thus  obtain  our 
comparative  results. 

Mr.  Doi.LiVER.  Have  you  any  nieans  of  making  a  statement  of  the 
falling  otf  in  the  domestic  consumption  in  the  American  market? 

Mr.  Alleuton.  We  have  no  means  except  by  taking  the  port 
receipts,  from  which  you  will  find  that  they  were  less  in  1.S95  than  in 
1803-94.  It  has  been  stated  that  the  reason  the  farmers'  products  are 
so  low  is  because  they  have  an  excessive  crop.  This  is  not  true,  as  we 
have  had  no  excessive  crop.  The  great  troul)le  with  the  i)eople  in  the 
country  is  this:  The  farmer  is  obliged  to  ship  his  grain  soon  after  gath- 
ering it,  because  money  is  very  scarce  in  the  country,  and  they  can  not 
carry  it  on  the  ground.  He  is  compelle<l  to  shi])  it  to  center  ])(>ints, 
which  costs  about  15  cents.  If  carried  on  the  farm  they  would  cost 
only  2  cents,  and  it  results  in  the  farmer  having  to  pay  that  15  cents. 
That  is  a  true  comlition  of  the  country  to-day.  There  is  a  great  lack 
of  money  in  the  country,  and  the  farmers  can  imt  borrow  it. 

Mv.  (liiOHVENOR.  What  do  you  mean  by  lack  cf  money? 

Mr.  Allerton.  You  would  understand  if  you  were  a  farmer  in  Illi- 
nois and  had  to  sell  your  crop  because  you  could  not  borrow  money  to 
carry  it,  and  thereibre  have  to  sell  at  a  loss. 

Mr.  Grosvenok.  There  is  more  money  iu  the  country  now  than  ever 
before. 

JNIr.  Allerton.  Not  in  circulation. 

Mr.  Grosvenor.  Probably  not  iu  circulation,  but  in  volume.  » 


V 


mer.    1 

(J  centvS 

4to4i 

8  to  the 


retaliation  from  EUROPEAN  COUNTRIES. 

Mr.  Grosvenor.  What  means  liave  you  of  knowing  that  these  restric- 
tions are  phved  upon  us  iu  consequence  of  the  repeal  of  the  reciprocity 
clause? 

jMr.  Allerton,  Germany  ami  France,  after  Te(;iprocity  was  made  a 
law — I  am  famiiiar  with  this  because  I  have  been  there — (iommenced  to 
engage  in  raising  beets,  because  it  gave  their  surplus  labor  em])loyment 
and  did  not  exhaust  the  soil.  They  said  to  themselves,  we  will  sluip  our 
sugar  to  xVmerica  and  buy  American  products.    Inunediately  after  thi^ 


196 


RECirROCITY    STATEMENTS. 


clanso  was  repealed  they  iiiado  the  cliiiin  that  our  catilo  were  diseased, 
knowiiijj  that  the  rresident  <lid  not  have  it  in  his  power,  exc^ept  throiijjh 
"Conf^ress,  to  prohibit  their  prodiuits.  Tiiat  is  the  reason  they  declared 
oiir  catLlc  siek.  1  stated  to  my  friends  here  to  day.  These  ^entleniiMi 
to  whom  we  are  to  talk  know  more  abont  reciproeity  than  w(^  do,  bnt  the 
:imi)ortant  thing  we  want  to  impress  upon  them  is  the  fact  that  our  cattle 
are  healthy. 

JVFr.  DoLLiVEP.  They  make  the  fullest  pretenses. 

Mr.  Allerton.  They  do  so,  and  Ave  believe  it  is  our  duty  to  present 
that  our  cattle  are  absolutely  healthy.  And  I  believe  they  did  this 
because  they  knew  the  President  had  no  authority  to  retaliate. 

Mr.  McMiLLiN.  Is  it  uot  a  fact  that  at  the  time  when  France  and 
Germany  had  no  products  our  meat  products  were  needed,  since  which 
time  the  status  of  aifairs  has  changed  and  they  do  not? 

JNlr.  Allerton.  No,  sir;  in  this  country  there  are  a  million  cattle 
put  in  cans.  The  larger  iiercentage  of  that  is  extra  aiul  they  can  not 
well  gi't  along  without  it,  but  they  keep  increasing  their  duty  on  them, 
which  depreciates  the  value  of  our  live  stocK.  That  is,  this  is  done  by 
Germany  and  France. 

Mr.  McMiLLiN.  They  destroy  the  profits  by  excessive  dutiest 

]  INFLUENCE  UPON  THE  PRICE  0¥   CATTLE. 

Mr.  Allerton.  Yes,  sir.  That,  you  see,  induences  the  price  of  our 
cattle,  because  a  million  or  more  are  put  in  cans  each  year,  aiul  as  the 
duty  is  increased  the  value  depreciates.  If  our  cattle  were  sick  you 
see  they  would  have  as  good  a  right  to  reject  our  canned  goods,  but  they 
do  not. 

Mr.  McMillin.  Haa  not  our  beef  brought  better  i)rices  than  usual 
for  the  last  few  nu)nths? 

Mr.  Allerton.  Our  cattle  are  $1.50  lower  than  wheu  we  had  reci- 
procity with  (i()(),000  less  cattle. 

Mr.  McMillin.  Can  you  give  these  prices? 

Mr.  Allerton.  I  cau  uot  tell  from  memory.  But  I  think  from  5  to  G 
cents. 

Mr.  McjVLillin.  What  we  want  is  deiinite  information.  We  could 
then  compare  those  prices  with  the  prices  of  the  ])resent  time. 

The  Chairman.  Before  you  came  in  JMr.  Allerton  had  gone  over  that 
subject  and  given  the  committee  figures. 

Mr.  Allerton.  1  nuvy  not  be  able  to  give  them  accurately,  ordy  as 
thej'  run  in  my  mind.  It  was  ranging  from  5  to  5^  and  0  cents,  while 
we  are  now  j)aying  about  4;^  cents. 

Mr.  McMillin.  Can  you  not  give  me  the  dates  on  which  those  prices 
prevailed  1! 

Mr.  Allerton.  The  cattle  market  varies.  Last  si)ring  it  was  good 
aiul  at  other  times  it  is  not  so  good.  The  Secretary  let  in  Mexican  cat- 
tle and  that  dei)reclated  the  value  81.  If  you  rexiuest  it,  our  i)resi- 
dent  will  go  home  and  lind  out  extictly  what  the  ligures  are. 

Mr.  Tawney.  It  would  be  more  satisfactory  to  have  this  information 
deiinite. 

Mr.  Allerton.  You  have  the  report  of  our  board  of  trade  which 
gives  it. 

The  Chairman.  I  would  be  glad  to  have  you  bring  that  forward  and 
introduce  it,  Mr.  Allerton. 

Mr.  Allerton.  You  want  to  remember  that  the  market  is  fluctuat- 
ing. It  depends  upon  whether  the  grain  crop  is  excessive  or  not.  Cat- 
tle the  sijring  of  hist  year  were  high  because  of  the  great  shortage  in 


■ 


ftECIPROCITY    STATEMENTS. 


197 


tiie  lioino,  (teniand,  siiid  bpciiiiso  thvni  was  not  iimcli  f"!'!!)!!  up  to  ()(•((>• 
l»:>i-.     Our  croi)  of  ;ir;uii  in  1S!»4  was  lost  Iroin  the  lack  of  rain,  and  our 
(•little  receipts  went  down  very  niucli  because  the  ])eoi)le  did  nctt  have- 
tlie  ji'rjiin  with  whi<;h  to  l'v(n\  Iheni. 

]\lr.  Tawney.  What  lias  hern  the  restriction  imposed  by  France? 

Mr,  Ai.LKUTON.  >.'othin};'  but  disease.  No  other  pretext.  And  as  I 
stated  to  the  nuunbers  «.f  our  liive  Htock  lOxchanjje  I  thou;;ht  the  thinj; 
we  wanted  to  i)ieseut  to  you  clearly  and  distinctly  was  that  our  eattlc' 
were  nevrr  healthier. 

JMV.  (liiosvE>;(>ii.  1  think  you  said  in  your  ntatenuMit  that  you  had 
lost  only  one  steer. 

Mr.  Allek'Ton.  Yes,  sir.  I  think  the  veiy  best  evidence  we  can  pre- 
sent to  you  is  the  fact  that  when  we  (u)ninuMiced  to  ship  cattle  we  paid 
fro.n  $5  to  $10  per  head  insurance  on  live  cattle.  We  now  j^vX  tlieso 
cattle  insured  for  (W  cents  per  head. 

Mr.  Tawney,  What  is  the  obligation  of  the  insurance  couii>anie8? 

IMr.  ALLEifTON.  To  i)ay  the  loss  on  cattle  in  transit  if  they  get 
drowned  or  die. 

Mr,  Tawney',  If  they  die  in  transit  the  insurance  company  has  to 
pay  what  they  cost? 

l\Ir,  Alt.erton.  Yes,  sir.  1  think  t'lis  is  a  most  conclusive  argnnientj 
as  the  insurance  people  are  some  of  the  shrewdest  business  i)eoi)le  in  the 
country,  and  they  would  not  nud^e  such  a  reduction  in  the  rate  W  our 
cattle  were  unhealthy  and  the  insurance  comi)anies  ran  great  risk.  I 
don't  know,  gentlemen,  that  there  is  anything  further  that  I  can  say  on 
this  subject. 

INSPECTION   OF  CATTLE, 


ictuat- 

Cat- 
iage  in 


Mr.  DoLLiVETi.  Is  there  any  inspection? 

Mr.  Allekton.  Y'es,  sir;  all  cattle  must  be  inspected  and  tagged. 
When  shipped  from  New  York  they  are  ins])ected  in  New  York  a-.u 
tagged  by  the  Government  inspectors.     Dressed  meat  is  also  insi)eeted. 

Mr.  DoLLiVElt.  1  have  heard  it  stated  that  the  ollicials  who  carry  ou 
this  inspection  are  careless,  and  that  the  insjiection  was  not  thorough. 

Mr.  Allerton.  J  think  it  just  as  thorough  as  possible.  The  cattle 
in  Chicago  have  to  go  through  a  ])en  and  be  inspected  one  by  one,  and 
be  tagged  in  the  ear.  But  when  the  cattle  come  from  Kentucky  and 
this  side  of  New  Y^ork  they  have  a  rigid  inspection  there  and  nuist  cany 
the  Government  tag.  1  think  the  inspection  is  as  good  and  thorough  as- 
it  is  jiossible  to  make  it. 

^Ir.  floiiNSON.  We  hav(^  spent  a  good  deal  of  money  through  the 
Agricultural  Department  for  stami)ing  out  diseases  among  cattle,  esjje- 
cially  pleuropneumonia  and  Texas  fever,  and  the  Department  attributes 
the  health  of  our  cattle  verj  much  to  that  work.  How  do  you  regard 
that? 

Mr.  Allerton.  I  regard  it  this  way,  there  never  was  any  pleuropneu- 
monia in  this  country. 

Mr.  Johnson.  How  about  Texas  fever? 

Mr.  Allerton.  We  have  had  Texas  fever,  and  I  think  I  can  explain 
Texas  fever  to  you.  Texas  fever  comes,  in  my  opinion,  from  this  cause, 
that  the  cattle  are  covered  in  spring  with  large  ticks.  If  you  buy  these 
cattle  with  these  ticks  on  them  and  put  them  in  a  pasture  field  and 
keej)  them  separate  you  can  have  the  native  cattle  around  them;  but  if 
y<m  turn  the  native  steer  into  that  iield  the  native  steer  will  die  in 
three  days,  and  it  all  originates  Worn  the  ticks;  but  Texas  cattle  under 
certain  conditions  are  as  healthy,  in  my  opinion,  as  any  cattle  in  the 


198 


RECIPKOCITY    STATEMENTS. 


MSH 


world.  I  have  e::periniente(l  on  them  to  find  out  for  myself.  I  have 
bought  Texas  cattle  with  ticks  and  kept  thorn  in  a  field  and  kept  the 
other  cattle  sepaiate  and  never  lost  any,  but  if  you  turn  in  a  steer  and 
he  eat?  these  little  ticks  he  will  die  in  three  days.  1  think  the  cattle  in 
northern  Texas  never  were  in  any  hefvlthier  condition  than  they  are 
to-day,  and  I  think  Texas  cattle  are  all  right  and  healthy  except  when 
they  l:ave  these  ticks  on  them,  and  that  is  my  judgment.  Are  there 
any  other  quest: ons  you  would  like  to  ask  nief 

INSPECTION  BY  GERMANY. 

Mr.  DoLLiVER.  I  would  like  to  know  the  view  the  German  Govern- 
ment takes,  for  instance,  with  respect  to  our  inspection  of  these  cattle 
and  dressed  meat — whether  they  regard  that  inspection  important  or 
valuable,  or  whether  their  action  is  a  protest  against  the  inefficiency  of 
that  inspection. 

Mr.  Allerton.  The  evidence  that  they  will  not  receive  our  cattle  is 
clearly  indicative  that  they  do  not  pay  any  attention  to  the  inspection. 
I  think  other  gci't'emen  liere  can  explain  about  the  inspection,  espe- 
cially Mr.  Doud,  Avho  is  in  the  business,  and  he  can  tell  you  the  inspec- 
tion by  the  Government  is  thorough  and  rigid. 

The  Chairman.  Mr.  Allerton,  is  it  not  a  fjict  in  Germary  they  have 
an  inspection  there  and  instead  of  taking  the  certificate  of  the  Ameri- 
can inspector  as  prima  facie  they  ignore  that  almost  entirely  and  send 
tlieir  own  inspectors  into  the  flock  of  cattle  and  they  determine  whether 
they  must  be  received  or  not? 

Mr.  Allerton.  I  think  t!:"y  do.  We  can  ship  the  cattlo  there  and 
i;hey  refuse  them  and  say  the  «.  ;  iile  are  diseased. 

Mr.  Tawney.  Have  you  been  in  Germany  since  they  have  commenced 
discrimination  against  our  cattle  or  beef  profHicts? 

Mr.  Allerton.  No;  I  have  not, but  I  have  some  friends  and  partners 
who  have  been. 

Mr.  Tawney.  Car  you  state  to  the  committee  what  method  the  peo- 
ple of  Germany  employ  for  the  purpose  of  discriminating  against  our 
beef  and  beef  products  over  there  ? 

Mr.  Allerton.  They  simply  declare  our  cattle  are  diseased. 

Mr.  Tawney.  Do  the  retail  dealers  use  any  signs  or  anything  of  that 
kind  in  their  shops  to  indicate  such  discrimination? 

BRITISH  discrimination    \GAINST  AMERICAN  BEEF. 

Mr.  Allerton.  They  do  in  England.  England  divscri»ninates  against 
Americaii  beef.  I  will  explain  that  to  you.  You  can  ship  the  quarfors 
of  a  steer  to  England  for  one  third  of  what  you  can  sliip  a  live  steer 
for,  and  the  English  iieojde  will  pay  $2  a  hundred  more  on  a  live  steer, 
because  that  is  sold  as  English  beef,  and  the  dressed  beef  is  sold  as 
American  beef.  Of  course  our  citizens  who  go  to  England  want  to  Ccit 
English  beef,  and  would  not  eat  American  beef,  so  they  sell  our  live 
cattle  as  English  beef  for  them  to  eat,  and  it  costs,  say,  50  shilliiigs  a 
head,  or  $12,  to  ship  a  live  steer,  whereas  you  can  ship  the  quarters  of 
that  sveer  for  $5  or  $0,  and  they  always  pay  about  $.'*  more  a  hundred 
for  beef  out  of  a  live  steer  than  that  brought  over  in  a  refrigerator, 
aKliough  our  dressed  beef  goes  over  in  i)erfect  condition,  and  the  sys- 
tem of  refrigerating  is  absolutely  i)erfect;  and  there  is  where  they  dis- 
criminate, and  1  think  that  is  virtually  due  to  a  good  many  of  our 
people  who  g*^  over  there,  because  they  do  not  want  to  go  over  there 
and  eat  An»erican  beef.  Are  th.ere  any  other  questions,  gentlemen, 
you  would  like  to  ask  f 


RECIPROCITY    >STATEMENTS. 


199 


I  have 
kept  the 
teer  and 
eatth^iu 
they  are 
pt  v.iien 
re  tljere 


Govern- 
se  cattle 
rtant  or 
uiency  of 

cattle  i« 
?pection. 
[)ii,  espe- 
B  inppec- 

icy  hava 
e  Anieri- 
iTul  send 
whether 

liere  ai'.d 

linen  cod 

partners 

the  peo- 
jnst  our 


of  that 


a  gainst 
uartora 
ve  steer 
e  steer, 
sold  as 
t  to  cat 
t)ur  live 
li<ij[>'s  a 
rtera  of 
luiidred 
icrator, 
the  ;»ys- 

ley  <liH- 

of  our 

r  there 

tlemeu, 


The  Chairman.  Do  any  of  your  friends  desire  to  be  heard  this 
nio'-niiij:,'? 

Mr.  yiLLERTON.  Mr.  Thoinjtson  i^  i)r(\sident  of  the  National  Live 
Stock  Exchange,  and  he  would  like  to  speak  a  few  words. 


STATEMENT  OF  MR.  W.  H.  THOMPSOIi,  JR.,  OF  CHICAGO. 

Mr,  Thompson  said : 

Mr.  Chairman  and  Gentlemen  of  the  Committee:  I  have  very 
little  to  say,  as  I  could  not  ndd  niuch  to  wliat  IMr.  Ailerton  has  stated, 
only  to  say  a  word  in  behalf  of  the  Natioiiul  Live  Stock  riXi'hnnf;e, 
whJ.  we  rejiresent.  Wo  thank  you  for  your  courtesy  in  listeiiinj'-  to 
our .  peeches,  and  we  do  most  assuredly  come  before  you  with  a  petition 
direct  from  the  ])roducers.  Those  are  vour  constituents  and  those  are 
the  men  who  .iflord  us  an  oi)portuiiity  to  make  a  lixin^i-,  because  we  are 
in  the  live-stock  business,  lint  1  Nvould  like  to  add  one  thinii'  with  ref- 
ereiK  e  to  the  inspection  which  you  asked  Mr.  Ailerton,  and  that  is  it  is 
a  rigid  inspection.  The  inspection  of  live  cattle  most  assuredly  is,  as 
Mr.  Allerion  has  stated,  very  rigid  and  vciy  strict.  There  is  not  a  quar- 
ter of  beef,  I  may  say,  that  is  exported  but  what  has  tlic  (xovcriiment 
stamp.    Therefore,  that  indicates  a  rigid  inspection  of  the  post-mortem. 

Mr.  Johnson.  Dees  this  inspection  extend  to  a  microscopic  iiispec- 
thm? 

Mr.  Thompson.  Yes,  ■:'/(•;  if  the  veterinary  has  any  doubt,  but  not 
unless  he  has  a  doubt;  this  is  ditterent  from  tlie  hog  product;  of  course 
that  has  to  go  tlirough  that  kind  of  an  inspection.  Now,  1  would  say 
that  if  there  is  a  question  that  you  gentlemen  wouhi  like  any  informa- 
tion upon  and  we  can  give  it,  I  guess  \k'e  can  answer  almost  any  «!ucstion 
tliat  yor  will  put  in  writing,  and  we  will  hunt  up  the  inf  )rmation  and 
give  you  all  the  informatio;i. 

Mr.  DoLLiVEii.  That  enables  me  to  ask  a  question  which  1  asked  of 
Mr.  Ailerton.  It  is  stated  that  the  product  of  live  cattle  is  (JOl>,(l()(>  less 
this  year  than  it  was  in  previous  years,  and  that  th»re  iias  been  a  loss 
in  sales  by  reason  of  the  discriinini;tion  of  (lermany  and  h'rance  against 
them  ('f  17,000  head  a  week,  or  about  800,00()  a  year.  Now,  I  want  to 
know  if  the  Live  Stock  Exchange  has  any  figures  to  show  the  falling 
oft"  in  the  domestic  consumption  of  meats,  especially  cattle,  since  18i>2, 
hy  reason  of  the  idleness  and  reduction  of  wages  of  the  people  of  our 
own  country. 

Mr.  Thompson.  P>y  giving  us  time  w<!  will  answer  all  those  questions 
as  nearly  correct  as  it  is  possible  to  obtain. 

Mr.  DoLLiVER.  1  v.'ould  be  obliged  if  we  could  have  reliable  figures 
as  to  how  much  less  meat  has  been  eaten  in  the  United  States  in  the 
last  few  years. 

Mr.  Thompson.  We  can  show  it;  but  as  to  the  production,  the  Gov- 
ernment report  on  the  1st  day  of  Januarv  last  states  the  ])roduction 
of  cattle  at  ;U)0,00(>  less  tlmn  it  was  in  1805. 

Mr.  DoLLiVEii.  And  you  state  the  price  is  $1.50  less! 

Mr.  Thompson.  Yes,  sir. 

Mr.  DoLLivi^R.  We  want  that  state  of  facts  with  reference  to  the 
consumption  in  the  United  States. 

Mr.  TiiorviPSON.  We  will  m-ike  it  jdain  to  you,  sir,  and  I  would  still 
further  say  that  Government  rejiort  also  states  that  the  year  of  1805 
was  the  smallest  product  ion  of  cattle  since  188U. 


51 'f 


'I.' 


'.3 


% 


200 


RECIPROCITY    STATP]MENT8. 


Mr.  Johnson.  Iu  getting  the  exact  flguies  it  will  serve  the  purpose 
just  as  well  if  you  send  tliem  within  a  reasonable  time  as  if  you  had  it 
to-day,  so  that  we  can  get  it  in  the  hearing. 

Mr,  Thompson.  If  you  would  make  those  questions  iu  writing  we  will 
answer  you  in  writing  witli  any  information  possible  for  lis  to  obtain, 
and  I  guess  we  can  answer  any  questions  that  are  propounded;  but,  of 
course,  wo  have  got  to  go  home  and  look  up  the  figures. 

Mr.  DoLLiVEK.  I  think  the  question  1  asked  will  cover  whai  we 
desire. 

The  Chairman.  Would  it  not  be  well  for  the  subcommittee,  in  view  of 
the  fact  that  we  have  not  the  exact  infoi-mation,  to  formulate  a  series 
of  questions  and  submit  them  to  the  president  of  this  association? 

Mr.  DoLLiVER.  I  think  so. 

The  Chairman.  We  will  send  to  your  address  a  series  of  questions 
that  Avill  call  for  the  exact  information  suggested  by  Mr.  Dolliver's 
questions  and  those  of  the  other  members  of  the  committee. 

Mr.  Tho^'^pson.  There  is  no  doubt,  sii,  we  can  answer  all  the  ques- 
tions satisfactorily;  and,  as  I  say,  we  are  in  i;he  interest  ot  the  producer, 
and  we  will  do  anything  possible,  and  we  do  lay  this  petition  before 
you  for  reciprocity. 


i; 


V  ' 


* 

1 

1 

i 

government  inspection  in  the  united  states. 

Mr.  Johnson.  Just  one  more  question  that  you  brought  out,  and 
perhaps  you  can  make  it  a  little  more  distinct,  and  that  is  on  this  sub- 
ject of  the  signiricance  of  the  tag  which  represents  the  Government 
inspection  here.  I  thought  you  stated  that  in  the  hog  product  the 
inspection  actually  went  into  a  minute  microscopic  inspection,  and  that 
beef  or  steers  had  to  have  a  tag  on  when  shipped  abroad? 

Mr.  Thompson.  Understand  me,  the  product  of  the  hog  has  to  be 
cured  and  of  course  the  Government  inspector  can  not  examine  every 
piece  of  meat  that  is  exported — that  is,  of  the  hog;  but  of  the  cattle  he 
sees  every  pound  of  meat  and  places  on  every  quarter  of  dressed  beef 
the  United  States  stamp,  the  insi)ector8'  stamp,  and  on  every  animal 
tliJit  is  exported  alive — that  is,  every  steer — he  bears  a  tag,  which  is  a 
])ass  tag,  and  without  that  pass  tag  he  certainly  could  not  be  shipped. 
If  that  tiig  was  ])ut  on  the  steer  in  Chicago,  and  before  he  arrived  in  New 
York  in  transit  he  should  lose  that  tag,  the  inspector  in  New  York 
would  inspect  that  animal  and  place  a  tag  on  him — that  is,  if  he  was 
a  sound  animal. 

(ientlemen  of  the  committee,  I  thank  you. 

The  Chairman.  Just  leave  your  address  with  the  reporter  and  wo 
will  send  some  questions  to  you  to  be  answered. 

Mr.  Thompson.  My  name  is  W.  H.  Thompson,  jr.,  and  my  address 
is  United  States  Yards,  Chicago,  111.,  room  7. 

Mr.  L.  B.  ])0UD.  Mr.  Chairman,  before  you  adjourn,  I  think  Mr. 
Thompson  did  not  appear  to  be  positive  that  all  pork  products  went 
through  a  rigid  inspection  by  the  Government.  My  understanding  is 
that  every  piece  of  pork  product  that  is  shipped  abroad  is  inspected 
by  the  Government  under  the  microscoi)e. 

The  Chairman.  That  is  my  understanding,  as  I  looked  up  the  matter 
a  couple  of  years  ago,  when  the  Wilson  bill  was  under  consideration,  and 
I  got  from  the  Secrettary  of  Agri(!ulture  the  exact  work  that  was  being 
done  by  the  Government.  If  there  are  no  other  gentlemen  who  desire 
to  be  heard,  I  will  declare  this  meeting  adjourned,  and  we  will  then 
communicate  with  you  as  we  have  intimated. 


APPENDIX    II. 


ADDRESSES  BEFORE  THE  COMMITTEE  ON  WAYS  AND  MEANS  BY 
REPRESENTATIVES  OF  THE  FLOUR  INDUSTRY. 


201 


ri 


m 


T  in 


H 


i 

I 


THE  FLOUR   INDUSTRY. 


STATEMENT  OF  MR.  C.  G.  JONES,  PRESIDENT  OF  THE  SOUTHWEST- 
ERN WINTER  WHEAT  MILLERS'  ASSOCIATION,  OKLAHOMA  CITY. 

Mr.  CllATHAIAN   AND    CiKNTLEAIEN   OF    THE   COMMITTEE:  The    lil'St 

duty  tliat  I  wisli  to  perform  is  to  tliaiik  you  for  tlie  kindness  and  the 
attention  tUat  you  liave  paid  to  nie  and  my  associates.  It  is  not  my 
]>uri)ose  to  take  up  more  tlian  a  few  minutes  of  your  valuable  time  in 
further  dis<'ussin<>this  very  important  question,  which  has  already  been 
soably  ])resented  to  you. 

Tlie  American  Hour  millinj^j  indnstry  is  greatly  in  need  of  legislation 
that  will  authorize  Ihe  United  States  Government  to  enter  into  recip- 
rocal commeicial  treaties  Avith  other  Governments  and  grant  authority 
for  retaliation  by  oui-  Government  against  the  commerce  of  nations 
that  ])ersistently  discriminate  against  American  Hour  and  other  agri- 
cultural ])roducts.  Tiie  need  of  such  a  law  has  been  keenly  felt  ever 
since  the  abrogation  of  former  recij)rocal  treaties  between  this  and  other 
Governments,  but  the  opportunity  for  procuring  the  enactment  of  a  bill 
l)romising  the  desired  remedy  has  only  recently  been  presented. 

The  losses  of  the  American  Hour  trade  during  the  past  year  caused 
the  witiidrawal  of  more  than  $l(),l)0(),()00  gold  from  the  United  States 
Treasnry  that  need  never  have  been  shipped  abroad  had  the  last  Con- 
gress been  as  solicitous  for  the  commercial  welfare  of  the  nation  as  it 
AVi's  zealous  in  the  interest  of  S])oilsnien.  We  know  to  our  sorrow  the 
ellects  of  commercial  warfare  with  nations  grown  so  "  wise"  and  so  solic- 
itous for  the  welfare  of  their  native  producers  as  to  tax  to  the  highest 
limit  of  peaceful  human  endurance  ever  mouthful  of  bread  their  ])eople 
eat,  in  order  to  **  juotect"  them  against  the  competition  of  the  fraction 
of  their  sujiplies  they  must  buy  abroad.  We  have  too  long  submitted 
to  the  arrogant  an(l  aibitrary  discrimination  as  practiced  by  nations 
that  only  develo])  a  neigld)()ily  spirit  when  seeking  American  gold  in 
exchange  for  their  ])roducts.  We  want  no  class  legislation  in  favor  of 
ll(»ur  juillers  or  any  other  class  of  American  bread  or  food  stuff  export- 
ers; we  seek  no  protection,  hence  we  can  ailord  to 

NOT   ONLY  REQUEST  HUT  DEMAND   FAIR   PLAY. 

That  is  the  business  on  which  the  three  leading  millers'  associations 
of  the  United  States — the  JMillers'  National  Association,  the  Winter 
AVheat  INIillers'  League,  and  the  Southwestern  Winter  Wheat  Millers' 
Association — are  now  bent.  We  want  reciprocity  with  the  nations  that 
wish  it  with  us,  and  statutory  authority  for  prompt  and  effective  retal- 
iation agai!ist  Ihose  that  rear  insurmountable  barriers  against  our  com- 
merce. The  merits  of  our  i)i()ducts,  our  ability  to  place  them  in  the 
markets  of  the  world  better  and  cheaper  than  tlie  breadstutf  producers 
abroad  do  or  can,  and  the  fundamental  laws  of  trade  entitle  us  to  all  we 

908 


^1 


M' 


III 


204 


RECIPROCITY    STATEMENTS. 


as]c.  It  is  moroly  a  question  of  estiiblisliiug  our  claims  by  lo^islative 
recoii'iiition.  Tlic  o])i)ortunity  is  at  hand;  will  we  embrac-e  it  and  win, 
or  neglect  it  and  jierniit  our  foroigu  trade  to  languish  and  go  into 
untimely  decline  at  the  caprice  of  Governments  that  owe  their  own  sub- 
jects, aside  from  our  rights,  better  treatment? 

The  evil  effects  resulting  from  the  abrogation  of  our  reciprocity 
treaties  with  several  nations  have  impressed  upon  the  breadstuff  export- 
ers of  the  United  States  very  forcibly  tlio  folly  of  abandoning  a  system 
that  admits  of  profitable  interchange  of  products  between  this  and 
other  countries  in  lieu  of  a  system  that  has  most  seriously  interrupted 
international  traffic  without  any  promise  of  future  gain  in  any  direction. 
The  interest  that  prompts  inquiry  and  suggests  a  remedy  in  this  instance 
is  higher  than  political  concern,  and  the  cause  involved  is  far  more  holy 
than  the  welfare  of  any  political  i)arty. 

If  it  were  practicable  to  ignore  politics  entirely  in  the  discussion  of 
trade  questicms  we  would  be  much  pleased,  for  there  is  that  indelinablc 
something  in  party  allegiance  that  at  times  halts  even  sturdy  business 
men  short  of  their  full  duty  to  the  commercial  world,  society,  and  the 
State.  By  this  we  mean  it  is  for  ])()liticians,  not  business  men,  to  inquire 
what  party  is  responsible  for  a  condition  resulting  from  unwise  legisla- 
tion. The  great  commerce  destroyers  of  this  generation  are  not  the 
war  slii])s,  but  the  impotent  bunglers  in  charge  of  the  affairs  of  States, 
who  prefer  to  wrangle  over  the  causes  of  disaster  from  a.  political  point 
of  view,  rather  than  to  apidy  the  remedy  suggested  by  plain  and  simi)lo 
commercial  usage.  It  is  reserved  for  trade  winners,  the  commerce 
builders  of  the  world,  to  overcome  the  baneful  inliuence  of  the  enemies 
of  unrestricted  trade,  and  when  these  fail  in  their  duty  the  world  nnist 
suffer  in  consequence.  Ill-faring  commerce  does  not  alone  aflect  its 
directly  related  interests,  but  radiates  its  influence,  apportioning  its  mis- 
fortunes throughout  the  land  so  misruled.     It  is  therefore  plain  that 


THE  DUTY  OF  EVERY  PTIODUCTIVE  AND  MANUFACTUillNa  INTEREST 

in  America  is  to  aid  in  the  extension  of  the  foreign  markets  we  may 
have  a  natural  and  reasonable  right  to  enter  Avith  our  surplus  on  a  com- 
l)etitive  basis.  In  the  matter  of  ai)plying  remedies,  we  need  not  bother 
our  heads  about  who,  or  what  party,  is  to  blame  for  mistakes,  nor  need 
we  for  life  bind  ourselves  to  the  party  that  gives  relief.  All  that  is 
asked  of  Congress  is  due  the  people,  and  it  should  be  the  pleasure  of 
the  i)eople's  representatives  to  cheerfully  render  the  service  most 
desired. 

Viewing  the  question  thus,  it  seems  the  duty  of  every  farmer,  grain 
merchant,  miller,  and  breadstuff  exjorter  in  the  United  States,  wliethcr 
])rotectionist,  free  trader,  or  tariff- for-revenueonly  adherent,  to  lift  up 
his  voice  in  support  of  the  bill  above  referred  to,  now  i^ending  in 
Congress. 

Many  reasons  may  be  given  why  their  duty  is  as  stated,  the  best  of 
them  all  being  that  the  Kerr  bill  is  the  oidy  promising  remedy  for  the 
existing  state  of  affairs,  i)roposed.  We  have  no  expectation  of  free 
trade,  nor  have  we  need  of  liigher  protective  tariff"  laws,  except  to 
employ  in  defending  national  interests  by  means  of  retaliation,  and 
this  the  Kerr  bill  promises,  in  addition  to  its  reciprocal  feature.  It  may 
not  be  all  that  could  be  desired  in  a  tariff-reform  bill,  nor  need  we  ever 
expect  a  bill  that  is  all  of  that  to  reach  enactment,  but  we  can  all  rest 
assured  tlnit  it  constitutes  a  vigorous  movement  in  the  right  direction, 
and  will  form,  if  made  a  law,  a  firm  foundation  on  which  to  build  in 
the  future. 


RECIPROCITY   STATEMENTS. 


205 


At  this  time  we  .are  concerned  with  the  promise  of  early  relief,  and 
until  we  have  wrought  that  we  should  have  no  efforts  to  bestow  upon 
plans  for  the  distant  future.  We  must,  as  a  commerci  '1  nation,  decline 
to  theorize;  we  must  resolve  to  meet  and  master  conditions  as  we  find 
them.  That  is  why  we  can  not  afford  to  view  questions  beariiifif  directly 
upon  our  commercial  interests  as  a  nation  through  ])olitical  spectacles, 
and  also  why  we  can  not  afford  to  rely  upon  promises  for  future  relief 
when  we  have  a  fighting  chance,  at  least,  for  success  at  present. 

OBSTACLES  IN  THE  WAY  OF  TRADE. 


may 
conj- 
ifher 
need 
at  is 
'c  of 
most 


ist  of 

the 

free 

)t  to 

and 

may 

ever 

rest 

tion, 

d  iu 


1 

n 


We  are  all  interested  iu  increasirg  the  demands  for  the  product  of 
our  great  and  leading  industry,  so  ably  represented  on  this  occasion. 
There  are  three  principal  obstacles  in  the  way  of  stimulating  the  demand 
for  our  home-produced  flour: 

First,  our  incomplete  trade  relations  with  the  other  American  coun- 
tries and  colonies,  which  are  our  natural  patrons; 

Second,  the  unjustifiably  high  rates  of  transportation  from  points  of 
production  in  this  country  to  our  seaports,  and 

Third,  the  increasing  comi)etition  with  some  of  the  South  American 
countries  actively  enlarging  the  i)roduction  of  wheat  there. 

Third.  The  increasing  comi)etition  with  some  of  the  South  American 
countries  actively  enlarging  the  production  of  wheat  there. 

The  matter  of  excessive  and  extortionate  rates  of  transportation  is 
also  a  very  proper  subject  for  immediate  legislative  attention  and  affects 
every  wheat  and  flour  producer. 

I  consider  it  appropriate  at  this  time  to  briefly  discuss  the  first  obstacle 
suggested,  to  wit:  Our  incomplete  trade  relations  with  the  other  coun- 
tries and  colonies  of  the  American  continent,  and  I  shall  aim  to  express 
myself  without  any  partisan  feeling.  I  therefore  desire  to  call  your 
attention  in  this  regard,  first,  to  the  situation  existing  in  this  country, 
as  I  observe  I*";  and  second,  to  a  hopeful  remedy,  as  1  conceive  it. 

This  country  is  producing,  on  the  average,  about  400,000,000  bushels 
of  wheat  per  year,  41  per  cent  of  whi^'.h,  or  more,  is  exported  to  foreign 
nations.  It  is  the  aim  of  the  industrial  world  here  to  deveh)))  the 
products  of  our  labor  and  capital  into  the  most  advanced  conditions 
for  the  export  trade.  For  instance,  our  crude  iron  is  converted  into 
machinery,  cutlery,  and  agricuiltural  implements  of  the  very  highest 
order  for  this  particular  trade.  It  is  the  same  with  our  timber  and 
many  other  products  of  our  gieat  and  still  growing  country.  As  I 
view  it,  the  same  rule  should  be  pursued  with  and  apply  to  our  export 
of  wheat,  which  should  be  converted  into  flour  and  rendered  a  finished 
product  before  it  is  shij)ped  abroad  for  consumption  by  the  people  of 
other  nations.  If  this  could  be  accomplished  more  capitil  would  bo 
invested  in  flour  milling  in  this  country,  more  of  our  idle  labor  employed, 
substantially  a  larger  amount  of  business  transacted  here,  and  a  new 
thrill  given  to  the  great  enterprise  of  milling,  now  lagging  in  our  midst 
and  seeking  business  in  a  land  of  plenty.  Besides  this,  those  gentle- 
men of  i)ush  and  courage  now  engaged  in  the  manufacture  of  n\ill 
machinery  in  our  own  country  would  be  provided  with  a  larger  and 
better  unirket  in  which  to  sell  the  product  of  their  would-be  busy  fa*;- 
tories.  Under  the  iulvanced  system  of  production  and  classification  of 
labor  now  prevailing  throughout  the  civilized  world,  the  individual 
produces  but  a  small  part  of  what  he  consumes.  Likewise,  the  nation, 
with  but  few  exceptions,  is  obliged  to  rely,  in  part  at  least,  upon  its 
exchange  of  products  with  its  sister  nations  lor  tl>e  perfect  subsistence 


206 


RECIPROCITY    STATEMENTS. 


1     ! 

I  I 


of  its  citizens.  However,  I  am  very  lini)i)y  to  siipge.st  tliat  the  [Jiiitcd 
States  of  America  lias  accinired  comparatively  the  highest  dejjroe  of 
independence  in  this  regard. 

Up  to  the  i)reseiit  time  this  country  has  not  produced  any  substantial 
part  of  the  sugars,  coffees,  and  a  few  other  arti(;les  commonly  consumed 
here,  but  they  are  imported  largely  from  other  American  countries, 
which  ought,  from  geograi)hical  and  political  reasons,  to  be  mutually 
interested  with  us  in  the  development  of  this  gi-eat  American  hemi- 
sphere; and,  if  I  mistake  not,  recent  events  indi(!ate  that  the  natural 
sympathies  and  friendly  relations  between  the  countries  of  this  conti- 
nent will  soon  be  crystallized  into  a  strong,  international  league,  of  a 
character,  jwwer,  and  resulting  benefit  never  before  witnessed  in  the 
world's  history. 

The  natural  relations  and  sympathies  between  these  countries  and 
ours  are  indisputably  stronger  than  with  Euioj)ean  nations,  from  the 
tyrannical  power  of  which  their  citizens  and  forefathers  have  com- 
mendably  escaped.  If  there  are  tropical  barriers  in  the  way  of  domestic 
production  of  these  necessary  articles  of  food,  imported  from  a  climate 
favorable  to  their  growth  upon  the  American  continent,  then  it  occurs 
to  me  that  it  would  be  good  business  sagacity  to  arrange,  if  possible, 
to  ])ay  for  such  necessary  imported  aiticles  of  food  out  of  or  with  the 
unused  surplus  of  this  country,  which  is  made  ui)  in  ])art  from  the  very 
product  of  the  great  farms  and  iiouring  mills  maintained  and  operated 
here. 

OUR  FLOUR  TRADE  WITH  BRAZIL. 

I  find,  upon  a  careful  research,  that,  uiuler  a  certain  agreement  for 
the  interchange  of  trade  and  commerce,  taking  etfect  A]m\  1,  1801, 
made  and  entered  into  by  and  between  the  United  States  of  America 
on  the  one  side  and  Brazil  on  the  other,  our  expoits  of  tlour  to  the 
latter  country  were  by  it  ])laced  upon  the  nondutiable  list,  and  increased 
as  follows,  the  years  named  in  each  instancie  terminating  on  the  .'idth 
day  of  June:  1891,  72L»,3()7  barrels;  1892,  918,447  barrels;  1893,  837,039 
barrels;  1894,  920,809  barrels. 

These  otilcial  figures  show  that  in  three  years,  and  during  the  con- 
tinuance of  our  commercial  reciprocity  with  Brazil,  our  tlour  exports  to 
that  country  were  enlarged  nearly  30  per  cent,  while  they  fell  off  for 
the  ye.ir  ending  June  30, 1895, 145,000  barrels,  or  more  than  15  per  cent, 
which  loss,  in  my  judgment,  can  be  safely  attributed  to  the  abrogation 
of  the  agreement  under  which  our  merchant  millers  were  justly  antici- 
I)ating  a  prosperous  future. 

Trade  is  a  matter  of  slow  growth,  but  during  our  commercial  recii>roc- 
ity  with  Jirazil  our  gross  exports  to  that  country  were  substantially 
increased  and  the  gioss  exports  from  Great  Britain  to  Brazil  were  cor- 
respondingly reduced,  being  $4,341,020  less  in  1892  than  in  1891,  a  loss 
to  Great  Britain  of  about  14  per  cent,  although  steamship  lines  from 
Europe  cut  rates  of  transportation  so  that  it  could  not  be  conducted 
with  profit  from  European  points. 

OUR  FLOUR  TRADE  WITH   CUBA  AND  PUERTO   RICO. 

Our  commercial  treaty  with  Spain  for  Cuba  and  Puerto  Kico  became 
operative  September  1,  1891,  under  which  our  flour  was  juactically 
admitted  free- to  those  islands.  It  is  well  to  consider  the  growth  of  our 
flour  trade  with  Cuba  and  Puerto  Bico  during  the  continuance  of  this 
agreement,  the  exports  of  which  to  Cuba  for  the  years  named  having 


RECIPROCITY    STATEMENTS. 


207 


the 


been  as  follows:  181)1,  11I,4U  biurels;  18!)2,  ^5()r),175  barrels;  189;{, 
G1<),4{M»  biinols;  185)1,  «I(>2,LM8  biiiiels,  \viii(;li  shows  si  growth  of  more 
than  480  per  eeiit,  while  oiir  export  Hour  to  Cuba  for  the  year  ending 
June  30,  18{)5,  the  year  after  the  annulment  of  our  reciprocity  treaty, 
fell  off  to  .'i79,85()  barrels,  a  loss  of  more  than  42  per  cent.  This  increase 
of  Hour  trade  with  Cuba  was  not  enjoyed  by  any  other  countries,  as  the 
exports  of  Hour  to  Havana,  the  metropolis  of  that  islaiul,from  Europe, 
fell  from  8(5,51!)  bags  during  the  months  of  January,  February,  March, 
and  April,  in  1891,  to  4,2(!8  bags  during  the  same  months  in  1892.  As 
I  understand  it,  these  bags  are  figured  at  140  pounds  each. 

Under  this  arrangement  similar  advancementsinour  flour  trade  with 
Puerto  Kico  were  achieved,  having  been  as  follows:  1891,  127,983  bar- 
rels; 1892,  102,147  barrels;  1893,  107,053  barrels;  1894,  200,813  barrels, 
which  shows  a  gain  of  about  60  per  cer.t;  while  our  flour  export  to 
I'uerto  Kico  for  the  year  en  'ng  June  30,  1895,  fell  to  118,017  barrels, 
or  a  loss  of  about  40  per  cent. 

OUR   TllADE   IN  BllEADSTUFFS  WITH   GKKMANY. 

Our  reciprocal  agreement  with  the  German  Empire  went  into  effect 
February  1,  1892,  under  which  our  Hour  was  adnntted  to  that  country 
at  the  reduced  rate  of  7.3  marks  per  100  kilograms,  or  -'i'l.ol  per  barrel, 
jind  our  exports  of  that  finished  jnoduct  to  Gernuiny  for  the  ye.ars 
named  were  as  follows:  1891,  8,804  barrels;  1892,  54,277  barrels;  'l893, 
200,719  barrels;  1894,280,229  barrels,  which  shows  a  gain  of  more  than 
3,127  per  cent,  while  for  the  year  ending  June  30,  1895,  and  after  the 
al»rogation  of  our  recij)rocal  agreement  with  (Jciniany,  our  exports  of 
Hour  to  that  country  fell  250,050  barrels,  or  a  loss  of  more  than  10 
])cr  cent. 

During  tlie  existence  of  and  under  these  reciprocal  agreements  aiul 
sundry  others  not  speciHcally  mentioned  between  our  country  and  the 
Central  and  South  American  countries  and  the  West  Indies,  as  well  as 
with  the  German  l^^mpire,  we  enjoyed  a  morc^  piosperous  export  trade 
than  ever  beibre,  while  our  olllcial  reports  (beginning  at  pag«',  94  of  one 
of  the  United  States  Treasury  reports,  entitled  "Comitierce  and  Navi- 
gation of  the  United  States  of  1893")  show  that  European  exports  to 
these  same  American  countries  and  islatuls  were  abated  in  about  the 
ratio  of  our  gain. 

The  bencHcial  results  accruing  to  us  from  the  ^e  reciprocal  treaties 
could  be  elaborated  upon  indefinitely.  It  is  suHicient  for  me  to  suggest 
that  the  loss  to  the  merchant  millers  of  this  country,  occasioned  by  the 
abr()j,ation  of  our  late  recii)roca]  commercial  relation  with  the  other 
American  countries,  islands,  and  the  German  Empire,  is  authentically 
estimated  at  the  large  sum  of  $10,000,000  i)er  year,  or  4,000,000  barrels 
of  flour,  to  produce  which  in  one  year  would  require  133  flouring  mills 
with  a  capacity  of  100  barrels  each  per  day. 

THE  OTHER  EUROPEAN  COUNTRIES. 

France  has  been  more  than  self  supporting  in  the  i)roduction  of  wheat 
and  flour,  her  gross  annual  ju-oduction  being  relatively  about  three- 
fourths  of  ours.  The  United  Kingdom  will  soon  rely  exclusively  upon 
other  fields  than  ours  for  nuiterial  for  her  breadstuffs,  as  our  Hour 
exports  to  that  country  are  falling  off  at  the  rate  of  1,000,000  barrels 
l)er  year,  and  it  behooves  us  as  a  Government  to  establish  and  main- 
tain such  trade  relations  with  the  50,000,(!;iO  people  of  the  other  Ameri- 
can countries  and  colonies,  also  with  dw  CJerman  Empire,  as  will 
provide  us  a  steady  nuirket  for  our  surpluhi  uour.  • 


,  s 


'i 

1 

V 

1 

\ 

I  fi 


208 


RECIPROCITY   STATEMENTS. 


Tlie  pfravity  of  the  situation  is  apparent  and  alarming.  Tho  total 
jirodnction  ot  wheat  in  tho  UnitcMl  States  for  tho  year  1<S!)5  shows  an 
increase  cf  (»7,()0(),()(H)  bnsliels  over  tiie  previous  year,  still  this  crojt 
year,  from  July  1  to  November  30,  we  exported  8,17r),00()  bushels  of 
wheiit  and  820,000  barrels  of  Hour  less  than  in  this  ('orresi)ondin<;  months 
of  1894.  The  mills  of  this  country  are  not  runninj;-  to  tlieir  tail  capac- 
ity. As  I  have  already  stated,  we  have  each  year  a  j^wat  suri)lus  of 
wheat  sold  abroad.  Why  not  convert  this  surplus  into  ilour  here  and 
export  the  Hour  instead  of  the  wheat?  We  iiave  abundant  millinj;' 
facilities,  ample  capital,  and  a  skill  and  genius  unecpmh'd  anywhere  in 
the  mannfacturiuf,'  world.  How  shall  wo  accomplish  this  end?  The 
remedy  is  comparatively  adequate. 


i 


WHAT  CONGRESS  CAN  DO. 

Our  national  Congress  can  pursue  a  policy  and  provide  a  machinery 
hy  which  our  ibrmer  export  flour  trade  can  be  restored  and  enlarged. 
\Vhocau  more  appropriately  i)ctition  Congress  for  a  redress  of  this 
grievance  than  we  who  are  now  primarily  compelled  to  sutler.  Tho 
merchant  millers,  nuinuficturers,  and  all  patriotic  citizens  of  this  whole 
country,  ])resentiiig  this  most  important  subject  to  Congress,  urge  tho 
vast  necessity  of  si)eedy  and  favorable  legislative  action  by  restoring  and 
enlarging  our  fornu'r  international  reciprocal  agreements,  aiul  thereby 
secure  the  trade  which  we  justly  claim  belongs  to  us. 

Brazil  finds  in  our  country  a  market  for  its  principal  ex])orts,  shipping 
to  us  over  $80,0(10,000  i)er  year  of  its  products,  while  we  in  turn  export 
to  Brazil  less  than  $11,000,000  of  our  products  i)er  year.  The  gross 
exjjorts  from  Cuba  are  valued  at  about  $100,000,000  per  year,  three- 
fourths  of  which  are  sent  to  this  country  and  consumed  here.  The 
gross  imports  into  Cuba  amount  to  $53,000,000  per  year,  three-eighths 
of  which  are  only  produced  in  and  shipped  from  the  United  States.  It 
will  be  observed  that  wo  furnish  a  market  for  75  x^er  cent  of  the  total 
ex])orts  of  Cuba,  and  we  su])ply  but  a  minor  part^of  the  imports  into 
Cuba,  while  i'^ngland  and  Spain  enjoy  the  principal  i)ortion  of  that 
trade.  And  the  same  is  true  of  a  large  number  of  the  other  American 
countries  and  colonies.  Our  markets  are  particularly  valuable  to  them 
all.  They  are  noncompeting  with  us  so  far  as  the  use  and  consumption 
of  their  products  here  are  concerned.  Why  should  we  afford  such  val- 
uable markets  to  these  con  ntries  and  colonies  without  reciprocal  benefits 
granted  us  in  their  markets?  Our  profitable  markets  should  not  be 
available  to  any  nation  without  giving  to  us  an  equivalent  therefor. 

Our  Hour  is  recognized  in  every  market  as  wholesome.  Its  superior 
quality  is  never  (luestioned.  It  seems  to  me,  gentlemen,  that  our  situ- 
ation demands  your  serious  and  favorable  attention  if  you  would  enlarge 
our  foreign  trade,  which  is  indispensable  to  our  perfect  i)rosperity  and 


TUB  COMPLETE  WELFARE  OP  OUR  COUNTRY. 


Jt  is  true  that  our  industries  are  classified  and  operated  under  sepa- 
rate and  distinct  mnnagenuMits,  but  the  iidluence  and  effect  of  the 
success  of  any  one  industry  are  incapable  of  confinement  Avithin  it. 
There  is  no  perfectly  independent,  exclusive  industry.  In  fact,  the 
financial  success  of  any  enterprise  affects  and  ameliorates  the  condition 
of  all  lateral  employments  and  occupations.  The  establislnnent  of  a 
newMudustry  in  any  locality  is  hailed  with  joy  by  all  the  citizens  of 
that  community.    Improvement  companies  are  organized  in  nearly 


RECIPROCITY    STATEMENTS. 


209 


every  modern  Western  city  to  induce  the  investment  of  foreipn  cnpitiil 
therein,  becauvse  of  the  benefits  which  jiccrue  therefrom  to  the  {jrewt 
aj^gregiite  of  the  people.  If  new  industries  are  sought  and  (sonsidered 
for  the  best  interests  of  all  the  people,  then  established  industries 
should  be  encoura^jcd  and  maintained  to  serve  the  same  purjmse  and 
ac(oni])li8h  t  he  same  end.  Prospective  industries  brif^hten  hojjo ;  estab- 
lished indus  lies  lighten  burdens.  The  one  stimulates  confulence  in 
the  iuture,  the  other  provides  bread  for  the  present.  It  is  the  enliglit- 
ened  duty  of  this  great  nation  to  expand  the  market  for  our  domestic 
Hour,  to  the  extent,  if  possible,  of  perfect  utilization  of  every  flouring  mill 
in  this  country. 

This  great  battle  should  not  and  can  not  be  fought  clone  by  iner- 
chant  millers  and  mill  nuiiiufacturers.  It  is  a  question  of  patriotism 
which  deeply  concerns  every  loyal  citizen  of  our  land,  who  should 
exert  his  full  power,  intelligence,  a'ld  influence  for  the  restoration  and 
enlargement  of  that  policy  under  which  that  great  industry  was  promoted 
and  prospered. 

Mr.  Chairman,  rising  al  ove  the  prejudices  of  partisanship,  let  us  all 
be  true  Americans,  wage  a  noble,  conscientious  fight  to  promote  a  dis- 
tinctively American  policy,  and  thereby  assist  in  working  out  the  highest 
destiny  of  a  great  people. 


STATEMENT  OF  MR.  M.  H.  DAVIS,  OF  SHELBY,  OHIO,  PRESIDENT 
OF  THE  WINTER  WHEAT  MILLERS'  LEAGUE. 

The  Chairman.  We  will  resume  the  hearing  this  morning  on  the 
question  raised  by  the  millers  of  this  country,  and  will  now  listen  to 
Mr.  Davis,  president  of  the  Winter  Wheat  Millers'  League. 

Mr.  Davis  said: 

Mr.  Chairman  and  Gentlemen  of  the  Committee:  What  I 
shall  say  to  you  is  at  the  direct  instigation  of  the  Winter  Wheat 
Millers'  League,  of  which  I  happen  to  be  president.  My  friend  Mr. 
Perry,  of  Indianapolis,  is  present  as  secretary  of  this  league.  This 
organization  is  composed  of  the  merchant  millers  of  Ohio,  Indiana, 
Michigan,  Illinois,  Kentucky,  Tennessee,  and  has  a  considerable  rep- 
resentation in  the  State  of  Missouri.  The  league  covers  what  is  known 
as  the  winter  wheat  producing  belt  of  the  country,  that  is,  the  Central 
States,  which  produce  more  winter  wheat  than  any  other  section  of  the 
country.  I  may  say  to  you  that  while  acting  as  the  direct  representative 
of  this  organization,  I  also  know  that  we  represent  not  only  the  interest 
but  the  sentiment  of  the  entire  milling  fraternity  of  the  country.  I  am 
further  assured  of  that  from  my  connection  with  the  Millers'  National 
Association  of  which  I  am  chairman  of  the  executive  committee,  and  of 
which  Mr.  C.  A.  Pillsbury,  of  Minnea])oli8,  is  president.  I  mention 
these  things  to  show  you  that  we  have  thoroughly  organized  ourselves 
for  the  purpose  of  the  presentation  of  our  ideas  and  our  wants. 


,t         EXTENT  op  the  MILLINa  INDUSTRY. 

Extent  of  the  flour-milling  induitry  in  the  United  States,  as  ahown  by  Eleventh  Cenaus. 

Capital $208,473,500 

Annual  wages  paid 27,035,742 

Value  of  annual  product 573,971,474 

H.  Eep.  2263 U 


IIP 


I  .-! 


210 


RECIPROCITY   STATEMENTS. 


The  value  of  the  annual  flour  ontimt  exceeds  tlie  annual  value  of  any 
other  product  from  the  raw  material  manufactured  in  the  United  States, 
as  follows: 

ExcoedB  iroo  and  steel  by $S3, 000,  000 

Exceeds  lumber-raill  prodaote  by 110,  300,  noO 

Exceeds  cotton  ifoodfl  by 846,  000,000 

Exceeds  woolen  t^oous  by 880,000,000 

Exceeds  boots  and  shoes  by 293, 800, 000 

The  millfi  of  the  United  States  have  capacity  to  manufacture  400,000 
barrels  of  flour  daily,  which,  in  250  operating  days,  would  amount  to 
]0(),()0(),000  barrels  of  flour  as  the  probable  annual  outjmt  under  favor- 
able conditions,  while  300  working  days  would  swell  the  aggregate  to 
120,000,000.  Thus  the  mills  have,  at  present,  cai)a('ity  to  annually  con- 
vert into  flour  from  450,000,000  to  540,000,000  bushels  of  wheat. 

The  actual  average  annual  output  of  flour  by  the  mills  of  the  United 
States  does  not  exceed  55,000,000  barrels,  and  proves,  what  all  in  the 
business  admit,  that  the  mills  are  not  employed  over  one-half  time. 
Figures  showing  the  dispo.sition  of  our  wheat  crop  substantiate  the 
above  statement,  viz : 

Basbels. 
Average  wheat  crop,  about 460,000,000 

Eeqnired  for  seed  and  to  feed  stock 110,  (X)0,  000 

Aveiii{i;e  export  ot  wheat 100,000,000 

55,000,000  barrels  flour  require 247,500,000 

Total 457,500,000 

EXPORTS   OP  WHEAT. 

There  are  100,000,000  bushels  of  wheat  exported  annually,  and  that 
to  us  means  that  our  mills  must  lie  idle  the  time  that  would  be  required 
to  uuiMuracture  this  vast  quantity  into  flour.  Why  does  that  condition 
existt  It  is  because  of  the  discriminating  tarilfs  of  other  countries 
against  American  flour,  or  against  flour  and  in  favor  of  wheat.  The 
extent  of  that  discrimination  is  ascertained  from  the  Government  rec- 
ords. I  will  say  here,  that  the  average  proflt  in  milling  would  be  C(m- 
sidered  extraordinary  at  10  cents  per  barrel.  If  a  mill  can  make  10 
cents  on  the  i)roduct  it  would  be  considered  as  doing  an  extraordinarily 
good  business.  The  ])r<)tit  ranges  from  nothing  to  a  few  cents  a  barrel, 
and  in  many  cases  for  the  last  two  years  mills  have  been  running  at  a 
loss  or  have  been  forced  into  assignment. 

European  taritts  are  as  follows: 


Country. 

Wheat,  per 
bushel. 

Flonr,  per 
barrol. 

Free, 
Free. 
•    Free. 
♦0.29 
.42 
.058 
.82 
.47 
.37 
.24 

$0,886 
Free. 

HulTand 

Xiv.u  mark 

Free. 

Italy 

1.49 

2.26 

.380 

2.21 

Portugal* 

2.18 

France 

11.88  to  2. 73 

Sweden  

T 


'Prohibited,  except  under  conditiona  preaerihed  by  the  Oovenunent. 


RECIPROCITY    STATEMENTS. 


211 


ue  of  any 

d  States, 


83,000,000 
10, 300, 000 
146,  000, 000 
wo,  000, 000 
t93, 800,  000 

«  400,000 
monnt  to 
ler  favor- 
rofjate  to 
lally  con- 

le  United 
ill  in  the 
lalf  time, 
tiate  the 

BanbelB. 
.60, 000, 000 

1M00,000 
.00, 000,  000 
147, 500,  000 

157, 500, 000 


md  that 
required 
johdition 
jouiitries 
at.  The 
tient  rec- 
be  con- 
make  10 
^•diiiarily 
a  biurel, 
iiig  at  a 


Flonr,  por 
barrel. 


$0. 386 
Free. 
Free. 
1.49 
2.26 
.38(5 
2.21 
2.18 
1. 88  to  2. 73 
1.M 


It  is  thus  seen  that  there  Is  no  continental  country  which  serves  as 
a  market  for  our  product  if  you  except  Ilollaiid  and  Denmark,  and 
these  may  soon  be  closed.  There  is  no  other  place  on  which  we  are 
received  on  equal  terms. 

Mr.  Tawnky.  ilow  is  it  with  respect  to  the  imports  of  the  other 
countries  1 

Mr.  Davis.  That  is  true  of  flour  from  all  countries. 

The  Chairman.  They  do  not  discriminate  against  American  impor- 
tations any  more  than  any  others? 

Mr.  Davis.  I  think  that  is  true.  In  the  continental  countries  the 
milling  interest  has  brought  its  intiuenc^e  to  bear.  France  has  a  niillors' 
association  of  3,500  members.  If  you  turn  to  the  consular  reports  upon 
the  subject  you  will  find  the  veriticatlon  of  what  I  say.  We  have  the 
documents  to  prove  it.  In  Germany  there  is  an  association  of  millers  of 
2,800  members.  These  associations  embrace  all  the  large  mills  in  those 
countries,  and  they  have  been  enabled  to  hav«  Irws  i)a88ed  enabling 
them  to  make  these  discriminations  at  the  expense  of  the  consumers  of 
flour.  Now,  we  maintain  with  such  a  treaty  as  is  contemplated  by  the 
Kerr  bill — and  that  is  the  subject  upon  which  we  are  talking — that 
American  flour,  which  is  better  than  any  made  anywhere  in  the  world, 
will,  by  virtue  of  its  merits,  win  its  way  into  the  markets  of  tiiose 
countries;  but  to  undertake  to  introduce  it  against  those  discriminating 
duties  would  be  out  of  the  question,  and  no  miller  would  undertake  to  do 
business  against  those  discriminating  duties  of  20  cents  to  $1.50  per  bar- 
rel merely  for  the  sake  of  introducing  his  flour  abroad.  It  seems  strange 
to  a  man  in  the  milling  business  that  with  the  capacity  to  manufacture  into 
Hour  all  the  wheat  produced  in  this  country — and  we  could  manufacture 
it  all  in  the  period  of  eight  months  with  our  ])resent  capacity — there 
should  be  exported  100,000,000  bushels  of  wheat.  That  exportation  means 
the  people  of  this  country  must  forego  a  possible  profit  that  would  be 
derived  from  th^  manufacture  as  well  as  the  distribution  of  the  cost  of 
such  manufacture,  which  has  been  variously  estimated  at  from  $50,00<l,000 
to  $80,000,000  per  year;  and  not  only  is  the  flour-milling  interest  itself 
directly  influenced,  but  the  trade  in  its  various  ramifications  is  also 
influenced.  Of  course  the  raising  of  wheat  is  the  great  feature,  but 
the  manufacture  of  staves,  headings,  and  the  cooperage  necessary  for 
packages  is  affected,  and  also  the  manufacture  of  paper  sacks  and 
cotton  sacks.  All  those  people  are  deprived  of  a  possible  business  by 
the  restrictions  placed  upon  our  business.  This  can  be  carried  farther 
to  the  manufacture  of  milling  machinery,  which  is  also  atfected.  The 
business  of  manufacturing  milling  machinery,  with  the  growth  of  the 
industry  in  this  country  for  twenty  yeara,  is  one  of  great  magnitude. 

TAEIIFS  OF  THE  AMBEIOAN  COUNTRIES. 

In  regard  to  the  tariffs  of  the  countries  of  the  Western  Hemisphere, 
you  will  find  that  we  have  been  discriminated  against,  and  hfid  been 
for  many  years,  until  the  passage  of  the  McKinle}^  bill,  because  we 
have  to  contend  with  the  superior  banking,  transi)ortation,  and  other 
facilities  of  countries  of  Europe.  I  have  a  table  here  showing  the  com- 
parative results  of  exports  of  breadstuff  and  flour,  before  the  operation 
of  the  reciprocal  treaties  with  South  American  countries,  during  the 


212 


BECIPROCITY    STATEMENTS. 


il 


existence  of  the  treaties,  and  since  the  al)rogntion  of  the  same,  that  I 
would  like  to  file  with  the  committee.    Tlie  table  is  as  follows : 

Table  I. — Showing  comparative  results  of  expoi-ts  of  brcadstuffa  andflov  before  the  opera- 
tion of  reciprocal  treaties,  during  the  existence  of  such  treaties,  and  since  the  abrogation 
of  same. 


Country. 


Breadsta£fs. 


Tlonv. 


1885. 


Br«il $3,419,448 

Haiti 462,651 

Sauto  Domingo Kio,  8 17 

Cuba 1,077,019 

Venezuela 964, 981 

Colombia i  301,697 

Costa  Kica l  88,940 

Guatemala ." !  159, 725 

Puerto  Rico '  894,165 

British  West  Indies 2, 721, 600 

British  Qui-;aa 647,747 


XoUl 10,899,290 


1891. 


$4,  388, 121 

1, 223,  671 

222,  001 

874,979 

1, 323, 773 

836, 935 

210,  771 

4«5,  675 

748,  875 

3,  S87, 175 

784, 739 


14, 470, 716 


1891. 


Barrels. 

722,  369 

224, 938 

38,431 

114,447 

194,  015 

56,  696 

39,131 

V>.,  528 

127,  983 

523,216 

147, 002 

2, 250,  766 


1894. 


Barrele. 

920, 869 

196, 08t 

44,171 

«62, 248 

215,412 

1.08, 465 

48,  843 

87,597 

200, 813 

649,  824 

218, 847 


1895. 


Lariels- 
775,  <25 
231, 817 

41,  836 
379,  856 
204, 178 
113, 020 

34,  937 
110,  613 
118,  617 
520,  938 
195,  323 


3, 253, 176 


2,  726,  558 


VoTK. — The  showing  for  1895,  while  exhibiting  a  great  falling  off  In  exporta  of  flour  for  the  year, 
does  not  fairly  represent  tho  loss  of  trade  jonsoquei, ,  upon  withdrawal  of  reciprocal  relations.  It 
covers  from  July  1,  1804,  to  .Tuly  1,  )895,  The  Hbipments  oi  flour  Immediately  after  the  enactment  of 
tlie  '".WB  of  1894  were  largely  in  excess  o{  natural  requirements  for  the  last  six  months  of  that  year, 
tbe  increase  being  iat  to  the  likelihood  of  higher  duties  following  tho  change  of  status. 

These  figures  are  compiled  from  the  message  of  the  President  of  the 
United  States  in  reKponse  to  a  resolution  of  tbe  Senate,  April  16,  1892, 
relative  to  the  commercial  agreements  made  with  other  countries.  It 
is  No.  119,  Fifty-second  Congress,  first  session,  Senate.  This,  Mi-. 
Smith  (superintendent  of  the  Senate  document  room)  informs  me,  is 
the  only  copy  he  has  on  file,  and  I  am  obliged  to  return  it,  but  tlie 
information  has  been  carried  over  to  another  report. 

Mr.  Tawttey.  I  will  ask  you  whether  the  tariffs  in  these  South  Amer- 
ican countries  to  which  you  have  referred  treat  American  tiour  differ- 
ent from  flour  imported  to  those  countries  from  other  places  than  the 
United  States  1 


SUOOESS  OF  THE  JlECIPROniTY  AnXlANOEMEITTS. 

Mr.  DAV3.  No,  sir;  and  I  consider  that  a  strong  argument  in  favor 
of  this  bill.  Because  we  have  practiced  this  species  of  recipro(;ity  with 
the  South  American  countries  with  success  I  think  is  due  acknowl- 
edgement that  justice  has  been  done  to  those  countries,  and  if  the  same 
sort  of  legi.slation  which  will  bring  about  the  Fame  kind  of  treaties  can 
be  put  in  f<»  ce,  we  can  be  put  on  an  equal  footing  with  the  countries 
of  Continental  Europe. 

Mr.  Tawne\.  Are  you  exactly  correct  in  regard  to  Cuba? 

Mr.  Davis.  Before  the  passage  of  the  McKinley  law  the  duty  was 
the  same  to  all  countries. 

The  Chairman.  The  dutieb  of  these  South  American  countries  w.as 
the  same! 

Mr.  Davis.  The  duty  in  Cuba  is  applied  to  flour  fiom  all  countries, 
and  at  the  present  time  our  flour  comes  under  the  second  column  or 
favored -nations  clause  in  Spain's  tarift",  and  is  now  paying  a  duty  of 
about  $4. Ki  per  barrel.  During  the  continuance  of  the  relations  brought 
about  by  tlie  treaty  of  1891-92,  subsecjuent  to  the  passage  of  the  McKin- 
ley law,  that  duty  was  but  88  cents  a  barrel.  Previous  to  the  adoption 
of  the  McKiuley  law  it  was  in  the  neighborhood  of  $4. 


r 


RECIPROCITY   STATEMENTS. 


213 


le,  that  I 
3: 


re  the  opera- 
s  abrooalion 


1895. 

c. 

U^rielg. 

69 

77b,  125 

8f 

231, 817 

71 

41,  sue 

48 

379,  856 

12 

204, 178 

65 

113, 020 

43 

34,  937 

W 

110,613 

13 

118,  617 

J4 

520,  936 

47 

195,  323 

76     2,  726, 558 

for  the  year, 
relations.  It 
enactment  of 
of  that  year, 

lit  of  the 
16,  1892, 
tries.  It 
L'his,  Mr. 
m  me,  is 
but  the 

fch  A I  lie  r- 
ir  differ- 
tban  the 


ill  favor 
ity  with 
cknowl- 
le  same 
ties  can 
juntries 


II  ty  was 
•ies  was 

III  tries, 
umii  or 
duty  of 
)roiif^ht 
McKiii 
loptiou 


The  Chairman.  You  started  to  say,  when  interrupted  by  my  col- 
league, that  this  executive  document.  Senate  No.  119,  had  been  carried 
o\  er  and  published  in  some  other  publication? 

Mr.  Datis.  Yes,  sir;  I  have  it  heie.  This  publication  which  shows 
tlie  increase  in  the  amount  of  our  exports  under  the  law  of  1890. 

Mr.  Tawney.  Can  yoa  state  whether  or  not  it  shows  what  our  trade 
has  been  with  the  South  American  countries,  as  compared  with  the 
trade  of  European  countries  with  those  countries,  prior  to  the  enact- 
ment of  the  reciprocal  clause  of  the  act  of  1890? 

Mr.  Davis.  I  can  not  say;  it  may  do  that. 

Mr.  Tawney.  Do  jou  know  whether  or  not  that  h&a  been  investi- 
gated with  a  view  of  showing  whether  or  not  we  are  getting  our  sh  ire 
of  that  trade? 

Mr.  Davis.  I  am  satisfied  that  it  does  cover  that  feature.  I  have 
taken  this  statement  from  "No.  6  of  Imports  and  l^^xports  of  the  United 
States  in  its  Trade  with  Foreign  Countries  During  the  Years  Ending 
June  30, 1890  and  1894,"  and  "No.  4,  Exports  ox  Domestic  JVIerchandise 
During  the  Year  Ending  June  30, 1895,"  and  these,  together  with  this 
Executive  Document  No.  119,  Senate,  give  me  the  basis  for  making  this 
table,  to  which  I  referred  a  short  time  since,  showing  the  comparative 
results  of  exports  of  breadstaffs  and  flour  before  the  oi)eration  of  the 
treaties,  and  during  their  existence,  and  since  the  abrogation  of  the 
same.    Those  three  features  I  thought  would  be  of  interest. 

Mr.  Tawney.  Does  your  statement  show  the  countries,  or  just  the 
aggregate  of  our  exports? 

Mr.  Davis.  It  is  the  exports  to  each  country  during  these  years  and 
the  agg'^egate,  and  includes  Brazil. 

The  Chairman.  File  that  and  it  will  be  made  a  part  of  your  remarks. 

capital  invested  upon  legislation. 

Mr.  Davis.  The  point  in  this  table,  as  I  see  it,  is  that  the  reciprocity 
policy,  which  had  done  so  much  for  the  millers  and  which  had  caused 
them  to  increase  their  capacity  and  had  built  up  hopes  of  increase  of 
business  to  an  extent  it  had  never  before  reached,  was  suddenly  wiped 
out,  ajid  since  that  time  the  business  has  been  practically  prostrated. 
True,  the  mills  are  running,  because  people  must  have  Hour,  but  there 
is  a  great  deal  of  difi'erence  between  handling  so  vast  a  business  when 
it  is  paying  expenses  and  when  it  is  not. 

The  Chairman.  Have  you  any  statistics  showing  the  consumption 
in  New  England  and  what  it  has  been  since  the  repeal  of  the  IMcKiJilev 
bill? 

Mr.  Davis.  1  h.ive  statistics  touching  upon  the  subject.  As  a  miller, 
1  (!an  give  you  my  own  experience. 

Mr.  Tawney.  That  is  just  as  valuable  as  statistics. 

Mr.  Davis.  Yes,  sir;  it  certainly  is  more  to  the  point  with  me.  Our 
trade  in  New  England  ])i'cviou8  to  the  passage  of  the  present  law  of 
1H94  (I  believe  it  is  called)  amounted  to  about  40,000  barrels  of  flour  a 
year.  Immediately  following  the  i»assage  of  that  law,  it  dropped  down 
to  pracl'cally  liO,o6o  barrels  a  year.  Wo  liave  been  unable  to  increase 
it  to  any  extent  since.  It  does  not  nearly  amount  to  what  it  did  for- 
merly, caused  by  the  general  depression  of  business.  In  other  words,  a 
man  \\ithout  work  eats  less  heartily  t)i?n  one  who  has  work  and  can  pay 
for  his  necesdties. 

Tiie  Chairman.  Have  you  any  statistics  to  show  the  consumption  of 
flour  since  the  law  of  1894  was  passed,  as  compared  with  what  it  was 
under  the  MoKin ley  law? 


14 


'.  "  m 


m 


!f 


^-r 


214 


EECIPBOCITT   BTATEMKNTB. 


Mr.  Datts.  No,  sir;  I  have  not  prepared  any. 

Mr.  Tawney.  Are  you  situated  so  as  to  gather  the  statistics  and 
furnish  them  to  the  committee  as  to  the  difference  between  the  domestic 
consumption  at  the  two  periods — 1894  and  1895 1 

iMr.  Davis.  There  are  18,000  mills  in  the  United  States — and  that, 
perhaps,  I  should  have  mentioned  before — and  to  compile  a  record  of 
their  production  would  be  an  enormous  task  and  take  a  great  deal  of 
time.  1  can  only  say  that  from  my  connection  with  the  miliers  all  over 
the  country,  I  am  satisfied  that  the  domestic  consumption  is  much  less, 
and  therefore  our  need  of  foreign  trade  is  much  greater. 

Mr.  Tawney.  You  oay  that  from  your  own  experience  in  1894  you 
sold  in  New  England  about  40,000  barrels  of  flour,  and  in  1896  only 
about  20,000  barrels? 

Mr.  Davis.  Our  output  of  flour  for  1892  was,  In  round  numbers, 
150,000  barrels.  Every  barrel  of  that,  so  far  as  I  know,  was  consumed 
in  the  United  States.  In  1894  we  secured  considerable  export  trade, 
because  we  began  working  up  a  trade  in  foreign  countries;  and  it 
requires  many  years  before  we  can  get  on  a  oubstautial  basis  with 
foreign  customers.  Our  domestic  trade  fell  off  fully  50,000  barrclb,  or 
one-third  of  our  entire  product. 

Mr.  Tawney.  How  many  mills  do  you  run  ? 

Mr.  Davis.  I  only  run  one  of  between  900  and  1,000  barrels  capacity 
per  day. 

Mr.  Tawney.  That  is  one  of  the  18,000 1 

Mr.  Davis.  Yes,  sir;  they  are  not  all  bo  large,  but  many  are  larger. 

Mr.  Tawney.  The  percentage  of  loss  is  about  33J^t 

Mr.  Davis.  Yes,  sir;  the  domestic  trade  fell  off  that  much.  Our 
foreign  shipments  into  those  countries  began  in  1893,  and  we  wore  in  a 
better  condition  in  1894,  for  in  1894  we  exported  practically  50,000  bar- 
rels of  flour  out  of  our  150,000  barrels.  Our  mill,  with  favorable  legis- 
lation in  the  dj^oction  of  this  bill,  could  make  200,000  barrels  of  flour 
with  the  same  expense  it  could  make  150,000  barrels. 

The  Chairman.  With  the  same  capital  invested! 

Mr.  Davis.  Yes,  sir ;  we  would  turn  it  over  more  frequently.  To 
enable  a  mill  to  run  without  loss  it  will  have  to  be  operated  approxi- 
nuitely  200  days  ivx  the  year.  If  it  can  be  operated  250  days  in  the 
year  it  will  show  a  reasonable  output  of  flour  at  a  higher  profit,  and  if 
it  can  be  operated  for  275  or  300  days  in  the  year  it  ought  to  show  a 
very  satiisfactory  balance  sheet  at  the  end  of  the  year. 


EFFECT   OF  BEPEALINO  THE   RECIPROCITY  ARRANGEMENTS. 

The  Chairman.  Since  the  repeal  of  the  reciprocity  clause  of  the 
law  of  1890  this  foreign  trade  has  fallen  off"  greatly? 

Mr.  Davis.  The  foreign  trade  of  the  mills  has  largely  dropjed  oft". 
In  our  particular  case  our  foreign  trade  was  largely  worked  up  in  Eng- 
land, for  in  that  country  there  were  no  restrictions.  I  mention  this  to 
show  the  loss  in  the,  domestic  trade  and  the  necessity  of  extending  our 
trade  al)road  to  make  up  the  loss  in  our  domestic  trade.  We  could  not 
get  into  Germany  or  France  on  favorable  terms,  bat  we  could  get  into 
Great  Britain. 

Mr.  M(!MiLLiN.  Then  it  was  the  free  trade  markets  of  Great  Britain 
that  enabled  you  to  live  at  allT 

Mr.  Davis.  It  was  the  fact  that  there  was  no  discrimination  against 
flour  in  favor  of  wheat  in  Great  Britain.  We  would  not  care  if  there 
had  been  an  equal  duty  on  flour  and  wheat.    We  make  no  coLiplaints 


BBCIPROCriT   STATEMENTS. 


215 


as  to  the  right  of  other  countries  to  impose  duties  upon  our  products 
imported  into  those  countries,  but  we  do  complain,  and  we  think  we 
have  just  reason  to  complain,  of  discriminations  against  our  manufac- 
tures in  favor  of  oar  raw  materials. 

Mr.  MoMiLLiw.  It  was  a  form  of  protection  for  that  special  industry! 

Mr.  Davis.  It  is  one  form  of  protection  to  one  industry  in  those 
countries  to  the  detriment  of  the  consumers  of  those  articles.  The 
consumers  of  flour  in  France  and  Germany  to-day  must  pay  for  Hour  a 
price  greater  to  the  extent  of  that  discrimination. 

Mr.  MoMiLLiN.  It  w.'*8  possible  to  work  up  a  trade  in  free-trade 
England,  but  it  was  impossible  to  work  up  a  trade  in  countries  like 
France  and  Germany? 

Mr.  Davis.  It  was  discrimination  against  our  products  that  pre- 
vented trade.  Had  the  duty  on  flour  been  equal  to  the  duty  on  wheat 
we  would  have  no  cause  to  complain.  We  would  have  been  able  to 
extend  our  trade  into  those  countries  on  our  merits. 

Mr.  Tawney.  It  is  not  of  their  tariflTs  that  you  complaint 

Mr.  Davxs.  No,  sir. 

Mr.  Tawney.  It  is  the  discriminations  imposed  by  those  tariffs  in 
favor  of  one  product  as  against  another,  of  which  you  complain? 

Mr.  Davis.  Yes,  sir. 

EFFECT  UPON  THE   PEIOE   OF  WHEAT. 

Mr.  Tawket.  One  question  occurred  to  me  a  moment  ago  in  relation 
to  oar  trade,  and  that  was  whether  or  not  we  were  exporting  the  amount 
<■  ot  flour  we  did  in  1894,  or  whether  or  not  an  increased  export  of  Amer- 

ican flour  has  a  tendency  to  increase  the  price  of  wheat  produced  in 
this  country? 

J\Ir.  Davis.  I  think  undoubtedly  it  does. 

The  Chairman.  You  can  pay  a  bigger  price  for  wheat  in  this  country 
if  the  conditions  are  such  that  you  can  manufacture  the  entire  American 
product? 

Mr.  Davis.  Yes,  sir.  If  we  can  by  any  manner  of  means  manufac- 
ture one-third  more  flour  this  year  than  we  did  last  year  we  will  make 
more  money,  and  therefore  we  can  pay  more  for  our  raw  material,  and 
consequently  the  farmer  ^ould  be  beneflted  by  the  higher  price.  What 
is  true  of  our  mill  is  true  of  all  mills  in  the  country.  It  is  true  of  the 
insines  in  nearly  every  county  an<i  city  in  the  United  States  west  of 
New  Yoi  k. 

Mr.  McMiLLiN.  If  I  understand  you,  your  deductions  are  tluit  any 
laws,  whether  national  or  internationa'.,  v/hich  restrict  trade  between 
the  dillerent  countries  will  injure  you  as  a  producer  and  will  also  injure 
tiie  man  who  furnislies  you  tlie  raw  material? 

Mr.  Davis.  I  did  not  say  that. 

Mr.  McMiLLiN.  How  is  it,  then,  that  the  restricted  trade  afl'ects  you 
in  those  countries?  I  understood  you  to  say  that  tha  restrictive  laws 
of  France  had  restricted  your  trade. 

Mr.  Davis.  That  is  not  the  point  as  I  see  it. 

Mr.  McMiLLiN.  I  am  asking  if  that  is  the  fact;  whether  the  laws 
restricting  trade  do  not  afl'ect  you  as  a  manufacturer  and  also  the  man 
who  turnishes  you  your  raw  material? 

Mr.  Tawnby.  Does  not  Mr.  McMillin  proceed  upon  the  presumption 
that  we  have  restrictive  laws  in  the  United  States? 

Mr.  MoMtllin.  I  am  making  the  question  general.  I  do  not  apply 
it  to  any  country  or  to  any  i)lace.  Mr.  Davis  says  tiiat  he  was  enabled 
to  do  business  in  some  countries  and  failed  in  otiuers. 


■;  4 


w  r1 


216 


RECIPROCITY   STATEMENTS. 


*  i    ii 


t 


! 


ill 


Mr.  Davis.  My  deductions  are  along  this  line,  that,  notwithstand- 
ing the  restrictive  features  of  the  tariff  laws  of  foreign  countries,  we 
would  sell  our  goods  on  their  merits  and  would  make  progress  in  the 
distribution  of  our  goods  in  those  countries  under  those  laws,  provid- 
ing there  was  no  discrimination  against  our  manufactured  producte  in 
favor  of  our  raw  material. 

Mr.  MoMiLLiN.  The  less  restriction  the  greater  would  bo  your  oppor- 
tunity. 

Mr.  Davis.  It  is  not  a  question  of  restriction,  but  a  question  of  dis- 
crimination. 

Mr.  MoMiLLm.  But  the  less  the  restriction  the  greater  the  oppor- 
tunity? 

The  Chairman.  He  is  not  (iealiug  with  w  ^trictious. 

THE  FLOUE  TEADB  WITH  BRAZIL. 

Mr.  Davis.  I  would  like  to  make  my  point  clear  to  you.  Any  ques- 
tion any  gentleman  desires  to  ask  is  perfectly  agreeable  to  me.  Brazil 
is  a  country  which  we  as  millers  make  a  considerable  point  of.  In 
Brazil  our  flour  was  admitted  free  from  1891  to  1895,  because  of  the  con- 
cessions to  their  products,  mainly  coflee.  Our  trade  in  Brazil  has  been, 
increasing  for  many  years,  I  have  prepared  this  table  in  order  to  show 
you  that,  notwithstanding  the  restrictions  of  foreign  countries,  Yankee 
ingenuity  and  enterprise  has  been  enabled  to  extend  our  manufactures 
into  other  countries. 

Our  trade  in  Brazil  had  been  a  constantly  increasing  one  for  many 
years,  as  the  following  figures  of  average  yearly  exports  to  Brazil  show : 

Biirrels. 

1840-1849 253,000 

1850-1859 395,000 

1860-1869 352,000 

1870-1879 510,000 

1880-1889 615,000 

1890-1894 817,000 

1894 921,000 

In  the  year  ending  with  June  30,  1895,  however,  following  the  abro- 
gation of  our  treaty  with  Brazil,  our  exports  of  flour  dropped  back  to 
775,425  barrels. 

It  was  only  during  the  last  two  periods  under  review  that  we  enjoyed 
the  benefits  of  reciprocal  arrangements.  Notwithstanding  our  trade 
had  gradually  increased,  since  the  abrogation  of  the  law  our  shipments 
to  Brazil  have  fallen  oft"  almost  200,000  barrels.  These  figures  I  have 
taken  from  public  documents. 

The  Chairman.  Is  that  per  annum? 

Mr.  Davis.  Yes,  sir;  American  flour  now  pays  42  cents  in  Brazil. 
Belgium  is  a  country  that  for  many  ye".r8  had  admitted  American  flour 
free,  but  since  the  repeal  of  the  law  of  1890  the  situation  in  Belgium 
has  been  changed,  a  tax  having  been  imposed  last  spring.  During  the 
past  six  months  the  shipments  of  American  flour  have  been  247,000 
kilos.  Formerly  we  shipi)ed  5,000,000  kil68  t^  that  country.  That 
shows  the  results  of  a  discrimination  of  36  cents  per  barrel  on  Ameri(!au 
flour,  and  the  consequent  loss  of  trade  of  nearly  5,000,000  kilos  of  flour. 

Mr.  Tawney.  Inasmuch  as  you  sjjcak  in  reference  to  the  Kerr  bill 
now  before  the  Committee,  I  would  like  to  ask  whether  this  bill  con- 
templates merely  retaliation  or  restoration  of  the  reciprocity  clause  of 
the  act  of  1890.  I  gather  from  it  that  it  merely  relates  to  retaliation 
by  the  imposition  of  a  higher  duty  on  the  goods  imported  from  coun- 
tries that  discriminate  against  flour. 


JIECIPROCITY    STATEMENTS. 


217 


eithstand- 
ntries,  we 
J88  in  the 
8,  provid- 
•oducta  in 

ur  oppor- 

on  of  dis- 

he  oppor- 


k.ny  que8- 
».  Brazil 
t  of.  In 
f  the  con- 
has  been, 
r  to  show 
I,  Yankee 
ifactures 


or  many 
zil  show  : 

Barrels. 

.  253,000 

-  395,000 
.  352,000 
.  510,000 

-  645,000 
.  817,000 
.  921,000 

he  abro- 
back  to 

enjoyed 
ur  trade 
ipments 
J 1  have 


Brazil, 
an  flour 
Belgium 
ing  the 
L'17,000 
.  Tliat 
norican 
)f  Hour, 
err  bill 
(ill  cou- 
ause  of 
iliation 
a  couu- 


OIPORTANCB   OF  THE    RETALIATORY   FEATURE. 

Mr.  Davis.  Yea,  8ir;  that  wo  considered  an  important  feature,  in 
that  it  iH  retaliatory.  Tlie  first  section  deals  with  the  snbject  of  letal- 
iatory  duties,  and  the  second  is  in  reference  to  securing  a  reciprocity  of 
t  rade. 

Mr.  Kerr.  The  McKinley  law  was  simply  used  as  a  leverage.  It 
was  never  used  as  a  retaliatory  measure.  This  is  substantially  the 
same  provision  as  the  McKinley  law. 

Mr.  Davis.  The  subject  of  sugar  is  in  trod  iced  here  in  order  to 
secure  a  treaty  with  Cub.*;  the  subject  of  coffee  and  hides  for  Central 
and  South  American  countries,  including  Brazl;  that  of  tea  for  China 
and  Japan.  I  may  say  that  the  trade  in  American  flour  with  China 
and  Japan,  notwithstanding  the  restrictions  that  those  countries  put 
upon  American  products,  has  been  gradually  increasing,  but  at  a  slow 
pace.  Considering  the  population  of  those  countries,  it  is  my  opiiuon 
that  the  United  Sto^^ea  should  provide  facilities  for  exteitding  trp.de 
into  China  and  Jai)aii  \  that  there  would  be  enough  demand  from 
those  two  countries  to  require  the  entire  product  of  American  wheat 
raised  west  of  the  liocky  Mountains.  I  believe  that  is  the  consensus 
of  opinion  of  those  engaged  in  the  milling  trade. 

The  Chairman.  With  reference  to  foreign  countries,  is  your  flour 
shipped  in  English  bottoms  or  American  bottomsT 

Mr.  Davis.  In  both. 

The  Chairman.  In  what  proportion? 

Mr.  Davis.  Probably  most  largely  in  English  bottoms. 

The  Chairman.  Is  that  true  with  the  Cuban  and  South  American 
trade,  not  only  with  you,  but  other  American  shippers? 

Mr.  Davis.  I  think  it  is. 

Th«  CHAiRMiN.  Is  there  anything  further  you  want  to  present? 

Mr.  Kerr.  I  want  to  call  the  attention  of  the  committee  to  one  mat- 
ter. Mr.  Gallagher  stated  that  in  some  towns  the  price  of  wheat  was 
higher  than  in  Chicago,  where  it  was  govenadby  speculation. 

Mr.  Davis.  The  reason  for  that  is  that  the  wheat  used  by  American 
mills  is  of  a  higher  grade  than  that  used  for  speculative  purposes.  That 
used  by  the  mills  is  of  a  high  grade,  and  the  result  is  that  it  is  at  a 
l)remium,  which  redounds  to  the  interest  of  the  farmer. 

DISCRIMINATIONS  AGAINST   AMERICAN  FLOUR. 

Mr.  Tawney.  In  coming  in  contact  with  tha  administration  of  foreign 
tariff  laws  have  you  discovered  any  discrimination  that  results  from 
the  administration  of  those  laws  against  American  products? 

Mr.  Davis.  We  discovered  in  France  thai  by  reason  of  their  peculiar 
laws  they  have  been,  in  the  last  twelve  months,  able  to  ship  flour  from 
France  into  Great  Britain,  and  the  amount  of  flour  shipped  has  been 
L*,.'{()0,(H»()  barrels.  The  reason  that  that  has  been  possible,  and  that  it 
exceeds  by  fourfold  what  it  has  ever  been  before,  is  that  France  during 
the  past  year  passed  laws  giving  the  exporters  of  flour  10  cents  per  bar- 
rel bounty  on  flour  exported;  and  it  is  the  result  of  that  action  taken 
by  the  Government  favorable  to  that  particular  class  of  manufacturers 
that  has  been  a  very  serious  factor  in  the  loss  of  American  trade  in 
England. 

Mr.  Tawney.  Are  the  dntiea  levied  specific  duties  or  ad  valorem  duties 
in  the  countries  yvu.  have  spoken  of? 

Mr.  Davis.  They  are  not  arranged  in  France  on  either  an  ad  valorem 


i  u 


w 


218 


RECIPROCITY    STATEMENTS. 


ii 


■.Milt 


or  specific  plan,  as  understood  in  the  United  States.  It  depends  upon 
the  extraction  of  flour  from  the  wlieat.  For  instant.  \  if  flour  is  70  per 
cent  of  extraction,  that  would  be  one  rate  of  duty;  a  flour  60  per  cent 
extraction  would  be  still  higher  than  that,  and  a  flour  50  per  cent  extrac- 
tion would  bea  still  higher  duty.  That  is  under  an  arrangement  brought 
about  by  the  Millers'  Association  of  France  for  the  benefit  of  their  trade. 
The  duties  in  general  are  specific  duties,  but  they  are  qualified  in  t^'e 
manner  mentioned. 

Mr.  Kerb.  I  want  to  know  whether  you  have  figures  showing  the 
imports  from  Germany  under  the  reduced  duties  and  under  the  McKin- 
ley  law. 

The  Chairman.  If  he  has,  they  can  be  filed  with  the  stenographer 
and  become  a  part  of  his  remarks. 

Mr.  Davis.  The  figures  are  all  embraced  in  the  pamphlet  heretofore 
referred  to. 

Mr.  Kerr.  The  exports  to  Germany  are  not  in  that,  but  I  can  fur- 
nish them  to  the  committee. 

Mr.  MoMiLLiN.  You  speak  of  the  duty  imposed  by  Brazil  on  our 
wheat  products. 

Mr.  Davis.  Yes,  sir. 

Mr.  McMiLLiN.  When  was  that  imposed! 

Mr.  Davis.  On  the  1st  of  January,  181)5. 

Mr.  McMiLLiN.  Has  that  increased  or  diminished  our  trade  with 
Brazil? 

Mr.  Davis.  It  has  decreased  somewhat. 

Mr.  McMiLLiN.  What  percentage? 

Mr.  Davis.  It  has  decreased  200,000  barrels. 

Mr.  MoMiLLiN.  Out  of  the  total,  that  would  be  nearly  25  per  cent? 

Mr.  Davis.  The  duty  amounts  to  42  cents  per  barrel. 

Mr.  McMiLLiN.  What  would  be  the  ad  valorem  duty? 

Mr.  Davis.  A  barrel  of  flour  would  be  worth,  perhaps,  $4.20,  and  42 
cents  a  barrel  would  be  10  per  cent.  Before  the  passage  of  a  reci- 
procity arrangement  with  Brazil  there  was  an  equal  duty,  as  I  said, 
and  our  trade  had  been  gradually  increasing  under  those  circum- 
stances. It  increased  50  per  cent  during  the  short  time  of  our  reciprocal 
arrangement. 

Mr.  Tawnby.  Have  they  under  the  present  law  more  favorable 
terms? 

Mr.  Davis.  They  have  no  mor*)  favorable  terms,  but  Spain  has  better 
facilities  for  shipping  into  Brazil  than  we  have  in  this  country  by  rea- 
son of  certain  financial  arrangements.  Tiie  ban  Icing  arrangements  are 
better  and  the  language  is  practically  the  same,  so  that  Spain's  natural 
facilities  exceed  ours. 

Mr.  Tawney.  Have  you  the  statistics  of  our  trade  with  Germany 
before  the  reciprocal  treaty? 

The  Chairman.  Mr.  Kerr  can  furnish  it. 

Mr.  Davis.  The  figures  are  as  follows: 

Franco : 

Exports  to,  in  1894 $56,315,511 

Export*  to,  In  1890 49,977,024 

Inoreu* 6,338,487 

a«rman  J : 

Export!  to,  in  1894 92,367,163 

Export*  to,  in  1890 85,563,312 

InoMMft , 6,793,851 


NMMli 


RECIPROCITY    STATEMENTS. 


219 


Mr.  Tawnet.  Is  that  the  exports  of  flour t 

Mr.  Davis.  That  is  the  exports  of  everthing,  including  flour.  I  was 
unable  to  get  a  table  showing  the  quantities  of  flour. 

Mr.  Kerr.  In  1890  the  exports  of  flour  were  6,275  barrels,  and  the 
last  year  of  our  reciprocal  arrangement  ou»  German  exports  amounted 
to  286,000  barrels,  an  increase  of  two  or  three  thousand  per  cent. 

Mr.  Davis.  The  same  condition  that  I  have  mentioned  as  relating  to 
South  American  countries  made  the  exportations  to  Germany  greater 
in  1895  than  they  can  possibly  be  from  now  on  without  reciprocal 
arrangements,  because  the  people  bought  in  excess,  ex[)ecting  a  change 
of  status.  I  would  like  to  call  the  attention  of  the  committee  to  a 
special  consular  report  published  in  1895,  volume  10. 

Adjourned. 


STATSMEHT  OF  KB.  AUQTTSTINE  OAILAQHER,  OF  KANSAS  CITY. 

Mr.  Chairman  AND  Gentlemen  of  the  Committee:  In  represent- 
ing the  Southwestern  Winter  Wheat  Millers'  Association  before  yon,  Mr. 
Jones  and  myself  represent  what  we  may  term  only  one  section  of  the 
milling  industry  of  the  United  States,  but  we  are  herewith  the  assurances 
that  when  we  represent  our  section  we  represent  every  miller  in  this 
country,  and  that  any  statement  we  make  to-day  has  been  canvassed 
thoroughly  and  is  not  the  statement  of  ourselves,  but  of  the  people  we 
represent. 

First,  we  would  have  you  understand  that  this  representation  is  ot 
the  first  manufacturing  industry  in  the  United  States.  ^J'he  extension 
of  the  commerce  of  this  country,  if  you  take  the  care  to  inquire  into  it 
with  the  object  of  ascertaining  what  interest  was  responsible  for  it,  is 
vsiniultaneous  with  <^he  advance  of  the  liour-miliing  industry  of  this 
country.  The  volume  of  business  transacted  by  the  flour  mills  of  the 
United  States  is  greater  than  that  of  any  otiier  manufacturing  industry 
in  the  United  States.  As  1  will  show  you  before  I  finish,  the  flour  mills 
of  the  United  States  pay  more  money  for  wages  and  for  material  from 
wliich  to  manufacture  products  than  any  other  industry  in  the  United 
States.  It  is  a  business  not  su8cei)tible  to  the  control  of  combinations 
or  trusts.  It  is  scattered  over  2,800  counties  of  this  country;  almost 
every  Congressional  district  of  the  land  is  represented  by  from  1  to  100 
mills,  and  the  people  who  have  built  up  this  industry  are  crying  through 
this  committee  to  Congress  for  relief.  They  must  have  it,  so  they  say, 
and  they  believe  they  are  able  to  present  an  argument  which  will  show 
you  tliat  they  need  it.  We  do  not  ask  protection  in  the  shape  of  what 
might  be  termed,  by  people  who  do  not  believe  in  ultraprotection 
tlieories,  as  class  legislation;  they  do  not  want  it.  They  merely  ask  a 
fair  chance  to  do  business  on  a  competitive  basis,  and  wo  are  not 
intending  to  make  any  argument  either  in  favor  of  protection  or  against 
it,  or  with  reference  to  any  policy  of  a  political  nature. 

M/.ONITUDB  OP  THE  MILLING  INDUSTRY. 

In  1893  there  were  in  the  country  in  successful  operation  at  least 
18,470  flour  mills,  and  we  believe  tliere  were  more  than  that.  These 
are  figures  of  the  census  of  1S90,  and  as  there  was  «{uite  an  impetus 
given  to  milling  through  the  Blaine  jmlicy  of  reciprocity,  mills  were  built 
Jind  successfully  operated,  so  there  were  at  least  as  large  if  iu)t  a  larger 
number  of  mills  in  successful  operation  in  1893,  as  stated  iu  the  census 


!1    '.! 


'1 

n 


220 


RECIPROCITY    STATEMENTS. 


of  1890.  To-day  there  are  more  than  2,000  mills  of  that  number  idle, 
absolutely  closed  down. 

The  Chairman.  Since  what  dat^,t 

Mr.  Gallagher.  Since  1893. 

Mr.  Tawwey.  One  further  question  before  you  proceed.  How  many 
men  did  the  clo     ig  of  these  2,000  mills  throw  out  of  omployment? 

Mr.  Gallagher.  Now,  Mr.  Tawney,  I  could  not  answer  that  accu- 
rately. 

Mr.  Tawney.  I  only  want  it  approximately. 

Mr.  Charles  G.  Jones.  There  are  ten  men  to  the  mill  on  an  average. 

The  Chairman.  Is  not  that  a  pretty  large  estimate! 

Mr.  Jones.  No,  air. 

Mr.  Gallagher.  In  1893  we  exported  1(5,421 ,982  barrels  of  flour. 
In  1 891,  before  we  had  any  reciprocity  treaties  or  the  advantages  of 
reciprocity  were  extended  to  the  trade,  we  exported  11,114,051:  barrels 
of  flour.  Now,  last  year,  on  the  crop  of  1895,  the  year  1895,  as  millers 
figure  it,  we  exported  15,268,192  barrels  of  flour,  or  a  loss  from  the  year 
before  of  1,590,041  barrels. 

Now  is  a  very  opportune  moment  to  discuss  the  point  we  desire  to 
nuike  before  the  committee.  Mr.  Tawney  has  made  an  inquiry  as  to  the 
number  of  men  who  were  thrown  out  of  employine  /"  I  have  observed 
in  all  arguments  before  Congress,  and  before  committees  through 
■which  we  desire  to  reach  legislation,  the  question  of  the  number  of  men 
em])loyed  and  the  wages  paid  has  been  the  paramount  question  at  all 
times,  and  it  is  to-day. 


EFFECT  UPON  THE  PRICE   OF  WHEAT. 

We  dare  say  that  the  millers  of  the  country  have  never  to  a  very 
great  extent  asked  for  legislative  assistance,  and  consequenily  you 
have  not  heard  much  from  the  millers.  Yet,  we  would  have  you  under- 
stand that  we  believe  the  milling  industry  of  the  United  States  is 
responsible  to  day,  was  last  week,  will  be  to-morrow,  or  next  year,  if 
it  exists,  for  from  5  to  10  cents  a  bushel  on  every  bushel  of  the 
000,000,000  bushels  of  wheat  we  produce  in  this  country,  more  than 
the  speculative  price,  or  the  world's  competitive  price,  for  that  wheat  if 
the  country  had  not  this  milling  industry.  Consequently,  when  we  i)ay 
5  cents  per  bushel  more  for  every  bushel  of  wheat  grown  in  tins 
country,  on  account  of  the  milling  industry,  we  pay  $30,000,000  to  the 
farmers  of  this  country,  and  when  we  pay  10  cents  per  bushel  more, 
as  we  are  doing  to-day,  we  pay  $(50,000,000  to  the  farmers  of  this  coun- 
try before  we  have  got  the  wheat  in  our  bins;  and,  gentlemen,  that  is 
more  money  than  the  milling  industry  ever  earned  in  any  given  year, 
above  the  cost  of  labor  and  the  cost  of  material.  What  other  American 
manufacturing  industry  cau  e«iual  this  record? 

Mr.  Tawnev.  How  do  you  figure  that  in  consequence  of  the  milling 
industry  the  farmer  receives  10  cents  more  per  bushel  for  wheat? 

Mr.  Gallagher.  I  said  from  5  to  10  cents. 

Mr.  Tawney.  Well,  from  5  to  10  cents,  whatever  the  amount  is.  more 
than  the  producer  would  otherwise  have  received.  How  is  this  increase 
in  the  price  accounted  for  by  the  existence  of  the  milling  iiidustiy? 

Mr.  Gallagher.  As  you  know,  gentlemen,  the  milling  industry  of 
this  countrj'  is  not  protected.    It  is  not  susceptible  of  protection. 

The  Chairman.  It  is  protected  by  3,000  miles  of  ocean. 

Mr.  Gallagher.  This  is  good  protection,  but  what  I  mean  to  say  is 
it  does  not  go  far  enough. 


Pt 


RECIPROCITY   STATEMENTS. 


221 


nber  idle, 


fow  many 
neiitt 
that  accu- 


1  average. 


i  of  flour, 
intakes  of 
)4  barrels 
as  millers 
1  the  year 

desire  to 

as  to  the 

observed 

through 

er  of  men 

ou  at  all 


;o  a  very 
iiily  you 
u  under- 
states is 

year,  if 
1  of  the 
3re  than 
wheat  if 
1  we  pay 

in  tins 
»0  to  the 
.'1  more, 
is  coun- 

that  is 
sn  year, 
inerican 

milling 


IS,  more 
n crease 
try? 
IS  try  of 
n. 

say  is 


Mr.  Tawney.  You  mean  legislative  protciition  ?  . 

Mr.  Gallagher.  Yes,  sir.  As  I  statetl  at  the  outset,  whatever  I 
shall  say,  I  shall  not  attack  any  political  theory;  I  am  not  here  for  that 
purpose  and  do  not  want  to  do  it,  aud  do  not  want  to  be  uuderstood  as 
doing  it.  An  import  tariff  does  not  protect  an  export  industry.  That 
is  the  point  I  desire  to  make.  The  reason  American  millers  can  pay 
more  for  wheat  aud  grind  it  into  flour,  and  sell  the  flour  in  the  markets 
they  can  enter  in  competition  througliout  the  world,  is  on  account  of 
tlieir  inventive  ability  and  progressiveness;  that  is  all.  Tins  same 
tiling  exactly  is  revealed  in  the  making  of  a  reaper,  in  the  making  of  a 
mower,  and  in  the  making  of  a  plow.  These  industries  you  say  are 
protected,  notwithstanding  there  is  not  a  farmer  in  the  CJnited  States 
who  will  take  as  a  gift  any  one  of  those  machines  or  implements  made 
anywhere  else  in  the  world;  consequently,  there  is  nothing  else  respon- 
sible except  inventive  genius,  the  freedom  of  the  i)eop!e  of  this  country 
to  try  and  triumi)h,  and  that  is  what  they  have  done;  and  besides  that, 
they  have  cheap  land  on  which  to  grow  wheat. 

REASONS  FOR    THE  LOW  PRICE  OF  WHEAT. 

Mr.  Gallagher.  1  will  be  very  glad  to  answer  any  questions  at  any 
point,  not  that  I  have  studied  speaking,  because  I  never  did  anything 
like  this  before.  Now,  as  a  matter  of  fact,  you  brought  the  ([uestion  uj) 
which  I  was  glad  to  hear.  Chicago  is  paying  less  for  wheat  than  Min- 
nt  apolis  to-day,  by  several  cents.  You  al'  know  that,  and  if  you  do 
not  you  can  buy  a  paper  and  read  it. 

Mr.  Tawney.  That  is  due  to  what? 

Mr.  Gallagher.  That  is  due  to  the  influence  I  am  going  to  describe 
to  you.  Kansas  City  is  paying  10  cents  a  bushel  more  for  wheat  than 
Chicago.  Kansas  City  is  a  Southwestern  city,  Minneapolis  is  a  North- 
western city,  and  Duluth  is  also  a  Northwestern  city,  and  fhey  too 
are  paying  more  than  Chicago.  St.  Louis  is  a  Southern  city,  viewed 
from  Chicago,  and  St.  Louis  is  paying  more  than  Chicago.  New  Yoric 
is  i)aying  more  than  Chicago.  Every  market  in  this  country  is  paying 
more  for  wheat  than  Chicago,  right  along.  Chicago  is  a  si)e('ulative 
market,  gentlemen.  It  is  the  grain  market — the  market  where  eleva- 
tors are  built  to  store  grain — and  it  gives  the  value  that  the  world  gives 
to  grain.    Is  not  that  plain? 

The  Chairman.  How  can  Chicago  get  wheat  from  the  West  if  they 
pay  10  cents  a  bushel  more  for  it  in  Kansas  City? 

Mr.  Gallagher.  Kansas  City  buys  and  uses  the  wheat,  but  the 
producers  have  a  surplus,  besides  which  there  are  some  other  things 
which  enter  into  this  question  which  I  am  not  prepared  to  discuss 
betbre  this  Committee  that  come  under  the  head  of  transportation, 
freight  rates,  rebates,  etc. 

The  Chairman.  But  freight  rates  are  not  10  cents  per  bushel  from 
Kansas  City  to  Chicago? 

Mr.  Gallagher.  No,  sir;  but  Kansas,  Dakota,  Minnesota,  invaria- 
bly, nine  years  out  of  ten,  have  a  surplus  of  grain  that  Chicago  is  able 
to  buy  and  ship  in  at  low  freight  rates. 

Mr.  DoLLiVER.  And  it  seems  to  me  that  Kansas  City,  instead  of  pay- 
ing 10  cents  more  for  wheat,  would  take  a  whack  at  that  surplus. 

Mr.  Gallagher.  It  costs  6  to  8  cents  to  get  wheat  from  Chicago  to 
Kansas  City,  and  when  the  surplus  is  held  at  Chicago,  as  is  now  the 
case,  Kansas  City  millers  can  buy  grain  in  Chicago  cheaper  than  at 
many  Western  points.    This  is,  however,  not  always  the  case. 


222 


RECIPROCITY   STATEMENTS. 


:l    I 


MM 


The  Chairman.  How  do  you  explain  that  Kansas  City  millers  are 
])ayin{?,  say,  4  cents  a  bushel  more  than  they  are  retjuired  to  under  your 
Btatementf 

Mr.  Gallaghee.  Because  they  buy  wheat  In  Nebraska,  say,  and 
bring  it  into  Kansas  City  for  part  of  the  through  rate,  sending  the  flour 
South  on  the  balance. 

The  OnAiRMAN.  But  they  are  running  the  business  for  the  profit  in  it? 

Mr.  Gallagher.  Certainly. 

The  Chairman.  If  they  can  buy  the  same  wheat  in  Chicago  for  4 
cents  less  than  in  Nebraska,  why  do  not  they  do  so! 

Mr.  Gallagher.  They  do  not  buy  the  same  wheat.  We  take  the 
best  wheat  and  Chicago  takes  the  surplus.  Besides,  the  rate  of  fiei}>ht 
from  Chicago  is  higher  tlian  from  many  points  tributary  to  Kansas 
City. 

The  Chairman.  Then  your  statoment  is  not  accurate? 

Mr.  Gallagher.  It  is  when  I  say  the  milling  industry  is  responsible 
for  from  5  to  10  cents  higher  prices  on  the  wheat  product  of  the  country. 

The  Chairman.  But  you  say  it  is  from  5  to  10  cents  a  bushel  higher 
in  Kansas  City  than  in  Chicago,  and  I  understood  your  statement  re- 
ferred to  the  same  quality  of  wheat! 

Mr.  Gallagher.  I  expect  my  statement  to  be  borne  out  by  the  facts 
I  will  present. 

Tlie  Chairman.  The  milling  trade  can  not  pay  any  more  for  wheat 
than  anybody  else,  can  it? 

Mr.  Gallagher,  Yes,  sir. 

The  Chairman.  How  do  you  make  that  out? 

Mr.  Gallagher.  Because  we  have  in  the  United  States  the  best 
millers  in  the  world,  and  admitted  to  be;  we  have  the  best  machinery 
in  thb  world,  and  our  millers  can  make  flour  cheaper  than  any  other 
millers  in  the  world,  and  they  do  it. 

The  Chairman.  The  point  1  am  getting  at  is,  do  you  pretend  to  say 
these  millers  are  paying  4  to  6  cents  a  bushel  more  than  the  market 
price  for  the  wheat  they  buy! 

Mr.  Gallagher.  To  day! 

Tlie  Chairman.  Or  at  any  time. 

Mr.  Gallagher.  Yes,  sir;  more  than  4  to  6  cents  above  the  Chicago 
market  i)ri(',e. 

The  Chairman.  More  than  the  market  price! 

Mr.  Gallagher.  Yes,  sir;  the  Chicago  market  price  is  more  than  4 
to  5  cents  per  bushel  less  than  the  market  price  in  Kansas  City ;  you 
understand  me! 

The  Chairman.  They  pay  the  market  price  in  Kansas  City,  and  no 
more  and  no  less! 

Mr.  Gallagher.  They  often  pay  more  than  the  market  price  in 
Kansas  City.  But  when  you  come  to  the  selling  of  a  bushel  of  wheat 
in  this  country,  if  you  sell  it  through  New  York,  they  will  quote  the 
Chicago  price  to  you,  freight  added,  unless  the  milling  demand  war- 
rants a  higher  value.  It  is  the  price  of  this  country — the  Chicago 
price — and  based  upon  the  speculative  price  of  the  world. 

The  Chairman.  But  let  me  understand  you  here.  The  millers  do 
not  form  an  eleemosynary  institution  in  this  country,  and  are  not  pay- 
ing any  prices  they  are  not  required  to  pay  in  buying  their  wheat. 
Now,  I  do  not  understand  your  statement,  and  I  would  like  to  have  you 
elaborate  that  a  little,  when  you  say  Minneapolis  was  jjaying  so  much  a 
bushel  more  for  wheat  than  Chicago,  and  10  cents  a  bushel  more  than 


im 


RECIPROCITT   STATEMENTS. 


228 


millers  are 
under  your 

i,  say,  and 
ig  the  flour 

profit  in  it? 

cage  for  4 

e  take  the 
sof  freiffht 
to  Kansas 


esponaible 
e  country, 
he!  higher 
tenient  re- 

y  the  facts 

for  wheat 


the  best 
Dachiuery 
any  other 

nd  to  say 
B  market 


Chicago 


•e  than  4 
ity;  you 

and  no 

price  in 
►f  wheat 
lote  the 
nd  war- 
Chicago 

lers  do 
ot  pay- 
wheat, 
ive  you 
ucli  a 
•e  than 


was  being  paid  in  Kansas  City,  wlien  the  millers  could  buy  it  in  Chi- 
cago and  transi)ort  it  for  very  much  less  than  you  claim  they  are  giving. 
I  do  not  understand  that  at  all. 

INTRIOAOIBS  OP  THE  WHEAT  TRADE. 

Mr.  Gallagher.  Now,  you  take  Mr.  Tawney's  State.  Only  the 
other  day  a  Minneapolis  miller  bought  1,000,000  bushels  of  wheat,  at 
the  May  price  and  paid  cash  for  it,  and  put  it  in  his  elevators.  Now,  he 
wanted  that  wheat.  The  May  price  was  an  option  price  2^  cents  in 
advance  of  December  price,  and  the  carrying  charges  were  a  cent  dur- 
ing the  period  which  would  intervene.  There  is  an  instance  where  a 
miller  has  paid  above  the  Chicago  price  and  paid  a  premium  on  the 
Minneapolis  speculative  price  to  close  transa(;tion.  I  could  not  pretend 
to  explain  all  the  reasons  why  he  did  that,  but  he  did  it,  and  other 
millers  do  it,  and  they  grind  the  wheat  and  make  money  on  it  if  condi- 
tions are  anything  like  favorable;  that  is,  they  manage  to  do  bu.siness. 

The  Chairman.  Do  millers  have  anything  to  do  with  fixing  the 
market  price  of  wheat  in  this  country  t 

Mr.  Gallagher.  Not  excepting  as  they  compete  in  buying  wheat. 

The  Chairman.  Do  they,  as  a  matter  of  fact? 

Mr.  Gallagher.  Yes,  sir. 

The  Chairman.  To  what  extent! 

Mr.  Gallagher.  To  the  extent  stated,  I  should  say  at  all  times  5 
cents  a  bushel,  and  times  are  when  a  great  deal  of  the  wheat  product 
of  the  country,  through  the  influence  of  the  millers  of  the  country, 
reaches  the  prices  of  10  cents  per  bushel  more  than  if  the  country  had 
not  the  mills.  You  will  pardon  me,  Mr.  Tawney,  you  know  of  the 
statement  of  the  railroad  and  w"p house  commissioners  of  your  State. 
In  the  State  of  Minnesota  they  are  required  to  get  the  price  of  wheat 
in  Liverpool  and  in  Duluth  and  report  the  ditterence,  freights  consid- 
ered, once  a  week.  How  often  have  you  seen  as  much  as  9  and  10 
cents  difference  t 

Mr.  Taw^ney.  It  frequently  occurs. 

Mr.  Gallagher.  We  are  not  on  an  export  basis,  traders  say,  by  so 
many  cents,  and  they  never  think  of  bhiming  anyone  but  the  miller 
for  jmtting  prices  up.  If  you  gentlemen  can  assign  any  other  reason 
why  our  grain  is  not  on  an  exjiort  basis,  when  we  have  surplus  wheat 
in  this  country,  and  we  have  been  having  a  surplus  for  ten  years;  if 
there  is  any  other  reason  we  will  be  pleased  to  have  it  i)resented. 

Mr.  Dolliver.  I  think  Mr.  Hopkins's  idea  was  that  these  people  who 
pay  10  cents  more  than  the  market  price  for  wheat,  and  have  met  the 
expenses  of  their  business,  is  one  reason  why  it  has  not  been  very 
prosperous? 

DISBURSEMENTS  OF  THE  MILLING  INDUSTRY. 

Mr.  Gallagher.  I  dare  say  if  Mr.  Hopkins  was  to  see  what  the 
expenses  were,  and  what  the  millers'  actual  profit  nowadays  is,  he  would 
be  more  surprised  than  by  my  statement. 

The  census  of  1890  states  that  the  millers  paid  $431,152,290  for  mate- 
rial for  grinding,  and  they  paid  $27,035,742  for  wages.  The  flour  mil- 
lers do  not  employ  zi^  many  men  as  manufacturers  in  some  other  lines. 
Th'  sold  their  product  that  year — and  that  was  one  of  the  most  pros- 
perc  years  in  the  history  of  milling  in  this  country  (1893  the  volume 
was  a  little  bigger,  but  was  no  better  from  a  profit-yielding  standpoint) — 
they  sold  that  product  for  $513,971,474.    After  payiug  for  their  labor 


224 


RECIPROCITY    STATEMENTS. 


I 


and  their  material  tliey  liad  left  ^1512,7()3,0()0,  That  much  was  left  to 
pay  interest,  taxes,  insurance,  wear  and  tear  of  i)lants,  dividends  and 
profits — a  scant  10  per  cent.  Tljose  are  the  hffures  of  the  (Toveriuneiit. 
8onie  of  the  biggest  mills  passed  their  dividends;  not  nniiy,  but  some 
of  th'j  prominent  mills  of  the  country  did  worse  than  that.  That  rep 
resents  the  industry  that  furnishes  the  staff  of  life,  i  merely  present 
these  figures  to  show  you  the  contrast,  gentlemen. 

Now,  as  to  what  we  wear,  the  cost  of  material  and  labor,  and  the 
cost  of  producng  the  clothing  of  the  country.  The  labor  cost  $111,- 
889,000,  the  material  cost  $179,425,000,  and  the  output  of  the  clothing 
of  this  country  was  sold  in  the  year  1890  for  $378,022,000,  yielding  a 
nnirgin  to  our  merchants  above  all  the  cost  of  material  and  cost  of  labor 
of  $87,207,000. 

Mr.  DoLLiVBE.  Uo  you  regard  that  as  an  accurate  statement  of  the 
prolits? 

Mr.  GALLAanER.  This  is  an  accurate  statement  of  the  business. 

Mr.  DoLLiVER.  You  speak  of  the  profits  of  a  business,  calculating 
only  the  cost  of  labor  and  material;  do  you  regard  that  as  scientific? 

Mr.  Gallagher.  No,  sir;  1  do  not  regard  it  so,  because  I  said  just 
a  moment  ago  in  my  statement,  "above  the  cost  of  labor  and  mate- 
rial;" that  the  millers  had  the  per  cent  stated  to  pay  insurance,  taxes, 
wear  and  tear  of  their  plvnts,  dividends  and  profits,  the  same  as  the 
clothing  manufacturers.  These  statements  are  exactly  paralleled, 
merely  to  show  a  comparison. 

So  that  the  clothing  business  had,  after  paying  for  material  and  labor, 
almost  21  per  cent  to  apply  to  taxes,  insurance,  interest,  profits,  and 
dividends.  In  the  lumber  business,  the  business  of  furnishing  the  lum- 
ber for  the  houses  in  which  we  live,  the  margin  is  also  high.  I  am  talk- 
ing about  the  bread  we  eat,  the  clothes  we  wear,  and  the  houses  we  live 
in,  and  the  labor  and  material  and  the  manufacturers  that  are  inter 
ested  in  producing  these  things,  and  it  is  certuinly  a  fair  question,  in 
my  mind  at  least.  These  figures  all  are  from  the  census  report.  The 
lumber  interest,  and  this  includes  planing  mills,  lunt^>er  camps,  and 
everything  in  the  lumber  business,  ])aid  for  wages  $87,784,000 — I  do 
not  give  the  odd  dollars — paid  for  material  $231,555,000.  They  so^d 
their  products  for  $403,667,000.  There  was  left  a  margin  to  apply  to 
the  charges  stated  $84,327,000,  or  a  little  matter  of  20  per  cent.  Gen- 
tlemen, both  of  these  industries  show  a  margin  from  which  i)rofits  are 
derived,  if  at  all,  of  more  than  double  that  of  the  fiour  milling  industry 
of  this  country  at  it :  'uost  prosperous  period.  Now  I  have  stated  to  you 
that  since  ^^ese  fl^^ares  were  taken  11  per  cent  of  the  mills  of  the 
country  have  beei-  shut  down.  Last  year  in  round  numbers  we  lost  a 
business  abroad  amounting  to  1,600,000  barrels  of  flour. 


1 
* 


k 


THE  PROFIT  AND  LOSS   OF  RECIPROCITY. 

Mr.  DoLLiVER.  In  what  countries  abroad  did  we  lose  that  flour 
trade? 

Mr.  Gallagher.  ¥^e  lost  in  Brazil,  a  country  in  which  we  gained 
very  greatly  on  account  of  reciprocity. 

The  Chairman.  Give  us  the  accurate  figures. 

Mr.  Gallagher.  In  Brazilian  trade  145,575  baiTcls  of  flour  were 
lost  in  1895.  We  made  a  gain  during  the  existence  of  reciprocity 
treaties.  The  records  show  that  in  1894  we  sold  Brazil  817,000  barrels 
of  flour.  The  figures  I  have  here  for  1892  Brazilian  flour  trade  repre- 
sent a  crop  year,  and  would  not  be  presentable  in  this  report  as  Gov- 


RKCiriiOCITY    STATKMENTS. 


225 


ment  of  the 


ernmeiit  bureau  (Ifjures,  Tlie  n:ui\  \  rcfcircd  to  is  tlic  pain  of  the 
(litt't'iencc  l)i't\vt'iMi  817,000  biincls  of  tlour  oNporfed  to  Hiii/il  in  181)3 
tind  !I21,000  biinels  of  Hour  oxpoitcd  to  that  country  in  1804. 

Tlic  ("HAiiiMAN.  Tlio  increase  tlic  (irst  year  under  the  McKinley  law 
was  sonictiiin^  over  lOn,OUO  barrels? 

Mr.  (lALLACiJiKii,  Yes,  sir.     I>ut  in  181)0 

Tlie  CHAIK3IAN.  After  tlie  repeal  of  the  McKinley  law? 

Mr.  (lALLAGiiKU.  Yes,  sir;  after  the  abjogation  of  the  reciprocity 
(leaty  wo  dropi)e(l  ba<'k  to  775,41*0  barrels. 

Ml'.  I)ollivj;h.  This  is  in  Brazil  alone? 

Mr.  CiALLA(iiiEH.  In  lira/il  alone  we  lost  a  trade  amounting  to 
14r),r)7o  barieiH  of  tlour.  Brazil  did  not  only  abioj^ate  tbat  treaty,  but 
jjlaced  a  duty  of  42  cents  a  barrel  on  our  tlour  at  that  time;  ami  you, 
<;entlemen,  are  all  aware  that  one  of  the  chief  competitors  this  country 
lias  in  the  production  of  breadstulfs  is  the  Ar};entiiie  K<'i)ublic,  and  that 
today,  of  all  the  breadstutf-produciii};' nations  in  the  world,  there  i^no 
nation,  unless  it  be  Kussia,  that  18  makijig  the  efforts  the  Av}j;entiiie 
llepublit!  today  is  to  establish  mills  and  to  eoutrol  the  Brazilian  flour 
tratU',  while  ximerican  mills  suller  from  the  disadvantages  of  the  taritf 
mentioned. 

Mr.  Tawney.  You  oi)erated  for  three  and  a  half  years  under  the 
ret'iprocal  arrangements  between  r»razil  and  the  United  States'? 

Mr.  GALLAiiiiKU.  Yes,  sir;  and  we  made  a  gain  every  minute  of  the 
time. 

Mr.  Jones.  We  had  4,000  barrels  of  Hour  in  transit  to  Cuba  when 
the  treaty  exjdred.  We  were  asked  to  pay  duty  when  it  landed, but,  by 
having  the  authorities  at  Washingtcm  and  the  authorities  in  Cuba  confer 
they  agreed  that  all  tlour  in  triuisit  at  the  time  of  the  signing  of  the 
bill  by  the  President  of  the  United  States  should  be  lauded  free,  but 
that  on  the  coast  could  not  be. 

The  Chairman.  Do  you  sell  your  Hour  in  Brazil  for  40  odd  cents  a 
barrel  more  than  you  did  before  you  were  compelled  to  i)ay  this  addi- 
tional duty.  In  other  words,  do  you  make  the  42  (jonts  a  barrel  out  of 
the  American  producers  or  out  of  the  Braziliau  consumers! 

Mr.  (lALLAGUJiJi.  I  do  not  know  how  to  answer  tUu,t  exactly,  for  the 
reason  1  do  not  fully  understand  what  you  wish  to  show. 

Mr.  Tawney.  Are  you  exporting  llour  to  Brazil  now!      .  ; 

Mr.  Gallagher.  We  are. 

Mr.  Tawney.  Then,  when  you  sell  to  the  dealer  or  consumer  over 
th^re,  do  you  add  that  42  cents  duty  to  the  price  of  the  tlour  and  sell 
your  tlour  that  much  higher? 

Mr.  G\i,LAaHEE.  We  have  to  do  it;  we  eaJi  not  do  anything  else. 

The  Chairman.  You  sell  your  Hour  that  much  higher,  theu? 


SALES    OF  FLOUR  IN  THE   WEST  L.VDIES. 

Mr.  Gallagher.  Yes,  sir;  we  have  only  10  per  cent  margin  above 
the  cost  of  raw  material  and  labor,  at  our  best.  Oh,  yes;  wc  have  to 
do  it.  It  is  the  superiority  of  our  tlour  that  pei  n>its  it  to  go  in  there  at 
all.  We  had  a  reciprocal  arrangement  with  Spain  for  Cuba  and  Puerto 
Kico.  In  1893-94—1  will  give  it  that  way,  from  June,  18i)3,  to  the  1st 
of  July,  1894— we  60UI  to  Cuba  0^2,248  bairels  of  flour.  We  sold  to 
Puerto  Kico  during  that  year  200,813  barrels.  This  statement  will  give 
you  the  contrast  between  tlour  trade  under  reciprocal  treaties  and 
without  that  influence.  To  Santo  Domingo  we  sold  thiit  year  44,173 
barrels,  aud  to  the  West  Indies  outside  of  Santo  Domingo — ^that  iucludei 
U.  Kep.  2203 15 


226 


RECIPROCITY    STATEMENTS. 


all  of  them  down  in  that  sea — we  sold  937,550  barrels,  making  a  total  of 
IjSii,?!*!)  barrels  in  1893-94  (!rop  year.  Now,  commoncing  with  the  crop 
we  were  beginning  to  grind  on  Jnly  1, 1894,  and  counting  to  the  end  of 
1895 

Mr.  DoLLiVER.  A  similar  period  of  1894  and  1895? 

Mr.  Gai.lagiieb.  Yes,  sir;  we  sold  to  Cuba  379,85(}  barrels  and  we 
sold  to  Puerto  Rico  118,«!17  barrels,  and  to  Santo  Domingo  41,836  bar- 
rels, and  to  the  other  West  Indian  Islands  951,492  barrels,  making  a 
total  of  1,491,801  barrels  of  Hour. 

Mr.  Tawney.  That  is  a  loss  of  how  much? 

Mr.  DoLLiVER.  I  make  the  loss  499,000  barrels. 

The  Chairman.  If  you  liave  an  analytical  statement  of  the  whole 
subject  you  might  leave  that  with  the  clerk  of  this  committee,  and  we 
will  use  it  with  your  statement. 

Mr.  Tawney.  I  think  it  would  be  well  to  file  a  detsnled  statement 
witli  respect  to  the  losses  sustained  by  these  countries  as  the  result  of 
the  abrogation  of  reciprocity  treaties? 

LOSSES   ON   THE   SALES   OF   FLOUR   IN   THE    WEST   INDIES. 

Mr.  DOLLIVER.  We  api)eiir  to  have  lost  on  the  sale  of  flour  to  the 
markets  mentioned  499,000  barrels.  11  ow  nmch  wheat  does  that  repre- 
sent? 

Mr.  Gallagher.  Five  bushels  to  the  barrel  is  a  full  average. 

The  Chairman.  Have  you  given  the  loss  with  all  the  various  coun- 
tries with  whom  we  had  recii)rocal  relations  under  iha  McKinley  Act? 

Mr.  (tAllagher.  That  is  the  principal  loss,  because  those  are  the 
chief  countries  we  had  reciprocal  trade  relations  with. 

Tlie  Chairman.  Have  you  figured  out  so  you  can  give  us  the  num- 
ber of  bushels  of  wheat  that  this  loss  represents  to  the  farmers  of  this 
country? 

Mr.  Gallagher.  Our  loss  in  flour  exports  the  past  year  represents 
the  loss  of  8,000,000  busliols  of  wheat.  It  not  only  represents  the  loss 
of  8,000,000  bushels  of  wheat  sold  abroad,  but  represents  a  loss  of  the 
beneficial  influence  that  additional  flour  niakiiig  w^uhl  have  on  the 
American  wheat  nuirkets  and  the  milling  and  mill-building  industries. 

Mr.  Dolliver.  Now,  if  the  sales  have  fallen  off"  on  these  islands 
500,000  barrels  of  flour,  and  each  of  those  barrels  represents  5  bushels 
of  wheat,  that  would  be  2,500,000  bushels  of  wheat? 

Mr.  Gallagher.  You  are  calculating  only  our  loss  of  trade  in  one 
section,  while  my  estimate  relates  to  our  total  loss.  You  will  note  that 
our  loss  is  largely  where  we  had  reciprocal  treaties  abrogated,  with 
Brazil,  Cuba,  and  Porto  liico.  American  millers  gained  trade  in  some 
(juarters,  but  sustained  the  net  loss  montioned,  l,590/)00  barrels,  hist 
year. 

The  Chairman.  Y''ou  are  gradually  extending  your  trade  with  various 
countries,  but  the  loss  you  give  us  to-day  is  the  loss  you  have  expe- 
rienced by  reason  of  the  repeal  of  the  reciprocity  clause  of  the  McKin- 
ley Act. 

:  THE  flour  trade  WITH  FRANCE. 

Mr.  Gallagher.  On  account,  they  tell  us, of  our  high  tariffs  on  some 
products  France  has  excluded  ns  from  French  markets. 

Mr.  Dolliver.  By  a  prohibitory  or  high  tariff"? 

Mr.  Gallagher.  By  a  high  tariff"  and  the  granting  of  a  rebat^^  to 
the  millers  of  France  who  are  exporting  flour,  for  the  pui^jose  of  kill- 
iug  the  American  milling  industry. 


BECiPROcrry  statements. 


227 


The  Chairman.  Do  you  say  the  Frencli  millers  g'^t  a  rebate  for  sell- 
iiijj^  to  citizens  of  France? 

Mr.  (xALLAGiiER.  For  exporting  flour  milled  in  France. 

Mr.  Tawney.  The  export  miller,  as  I  understand,  gets  a  rebate  of 
about  25  cents  a  barrel  1 

Mr.  G  ALLAGiiEK.  Two  francs,  ;>8  cents,  a  barrel,  I  believe. 

The  ('iiATUMAN.  That  does  not  keei»  you  out  of  France? 

Mr.  GALLAaHER.  Yes,  sir.  .    . 

The  Chairman.  How  does  that  aftect  you? 

Mr.  Gallagher.  They  let  our  wh'^at  in  cheaper  than  they  do  our 
Hour.  They  buy  our  ^vheat  and  mill  it  into  flour,  and  export  it  to  get 
the  drawback. 

Mr.  MrLAiTRiN.  That  oaght  not  to  injure  you  if  it  makes  a  market 
for  the  raw  product? 

Mr.  Kekr.  Tiie  duty  on  the  wheat  is  only  about  half  of  that  on  Hour. 

Mr.  Gallagher.  We  are  not  making  an  argument  in  favor  of  sell- 
ing wheat;  you  let  wheat  alone,  it  will  sell  itself. 

The  Chairman.  What  I  am  getting  at  is  this:  You  say  you  are 
affected  by  being  kept  out  of  the  market  of  France,  and  then  you  cite 
the  fact  tliey  are  exporting  flour  from  there,  and  giving  a  rebate  on 
ex^iorts.  With  that  fact  alone  I  can  not  see  how  it  keeps  you  out  of 
France. 

Mr.  Tawney.  It  gives  the  French  miller  that  nuich  profit  over  the 
American  miller. 

The  Chairman.  Not  in  his  own  country? 

Mr.  Tawney.  That  is  not  the  point  we  are  at.  It  is  not  what  they 
are  doing  outside  of  France  as  what  they  are  doing  inside  of  France. 

The  Chairman.  The  French  miller  does  not  get  any  rebate  for  what 
is  eaten  in  France? 

Mr.  Tawney.  That  is  exactly  what  he  does. 

Mr.  Gallagher.  I  think  you  are  mistaken,  Mr.  Tawney. 

Mr.  Tawney.  lie  mills  the  wheat  in  France,  arid  when  he  ex])orts  that 
wheat  in  floiu*  he  gets  a  rebate  or  bounty,  you  can  say,  of  .'i8  cents  a 
barrel. 

Mr.  Kerr.  And  takes  it  to  England,  where  it  is  entirely  free,  with 
the  advantage  of  ;}<S  cents'? 

Th3  Chairman.  That  affects  I^^ngland  and  not  Fran(re,  and  we  are 
getting  at  the  statement  of  the  gentleman  of  the  efl'ect  in  France. 
This  rebate  cuts  no  figure  in  the  French  nmrket'if 

Mr.  GALLAiiiiEK.  Wc  will  keep  on  that  line  for  a  few  moments. 
Every  manul'aiturer  knows  if  he  can  keep  his  plant  going  he  can 
employ  his  labor  chea]»er.  If  a  man  runs  a  big  i)lant  he  can  reduce  the 
cost  of  the  product.  For  instance,  tliere  are  mills  nuiking  Hour  at  lo 
cents  a  barrel,  and  in  other  mills  it  costs  from  30  to  40  cents  a  barrel 
to  make  flour.  Now,  the  milling  industry  of  France  was  decaving;  it 
was  in  a  bad  suite,  i  tell  you  the  millers  of  the  United  States  make 
good  flour  and  they  are  bad  people  when  it  comes  to  competition  of 
lines  of  unicstrictetl  trade,  and  th»'re  is  nobody  who  can  beat  an  Ameri- 
can if  you  give  iiim  a  show.  That  was  a  good  trade  and  one  highly 
valued  by  the  mills  throughout  thia  country,  aiul,  while  I  am  on  the 
French  subject,  we  will  just  include  Germany 

reasons  for  the    IJIFFIOULTIES  IK  FRANCE. 

The  Chairman.  No,  keep  on  France  until  we  getMin»ugh  with  that. 

Mr.  Gallagher,  The  jnoducers,  tlirough  the  milling  organizations 

of  Fiiiuce,  worked  up  au  influence  to  induce  that  country  to  put  a  dis- 


,i  ti 


m 


it 


228 


BECIPROCITY    8TATKMKNTS. 


cniniiiiitive,  prohibitive  tariff  on  American  Hour,  and  it  admitted  Anver- 
icau  wlicat  on  such  terms  tliat  it  would  not  only  inoliihit  all  ou!si<lo 
Hour  frou)  e!iterin}>-  their  markets  for  domestic  consuuii)tion,  but  they 
would  be  able,  in  the  meantime,  instead  of  beinj?  idle,  Jo  buy  loreiyn 
wheat,  mill  it,  and,  by  reason  of  the  rebate,  exi)ort  it  and  take  away 
the  trade  of  any  other  country. 

The  Chairman.  Now,  rij^lit  there;  that  is  le^ishition  in  France 
respecting  her  domestic  industries.  Wliere  does  the  reciprocity  clause 
you  speak  of  interlere  with  thai ? 

Mr.  (lAJ^LAdiiER.  There  is,  a  little  further  on,  a  notation  in  that  bill 
under  the  ln;ad  of  retaliation. 

TheOiiAiiiMAN.  Leave  that  i)art  out.  I  understand  by  reason  of  the 
repeal  of  the  reciprocity  clause  of  the  McKinley  bill  you  had  been 
injured  in  France? 

Mr.  CJai.lacuikr.  No,  sir;  by  reason  of  the  advance  of  our  taritVon 
account  of  which  l^'rance  retaliated. 

The  CiiAiiniAN.  Were  you  allected  in  any  way  in  France  by  the 
rei)eal  of  the  recii)rocity  clause  of  the  McKinley  .ict! 

Mr.  (lALi.A(jnFiR.  No,  sir;  we  had  no  recii)rocity  treaty  with  France. 

The  (/IIAIRM  AN.  I  understood,  earber  in  your  statement,  that  you  had 
been  driven  out  of  France,  and  I  took  from  the  trend  of  your  argument 
it  was  because  it  was  legislation  resulting  in  the  re])eal  of  the  reciproc- 
ity clause,  and  1  <lid  not  understand  that.  Now  you  and  I  .  'lerstand 
each  other.  Then  you  are  not  alfected  at  all  by  any  kp;:sIu,wiou  hi  this 
count  ly 

JNlr.  <.jAI/.:agiier.  Not  exactly  so.  We  are  atfe<ted  because  in  a  mat- 
ter of  about  six  njonths  after  the  McKinley  bill  was  put  in  oi)eration 
we  advanced  the  tarilf  on  several  Frencdi  products,  1  do  not  know  to 
what  extent  and  1  am  not  j)repared  to  state  exactly,  but  we  did,  and  it 
was  well  known  and  generally  discussed,  and  France  i)roceeded  t^)  enact 
an«l  put  in  operation  a  law,  as  1  told  you,  discriminating  against  ou  • 
bread  stufl's. 

The  Chairman.  That  was  brought  out  for  the  protection  of  the 
donuvstic  ind.:strv  there  in  France — for  the  protection  of  the  millers  of 
France  against  the  competitioii  of  Americjui  millers'? 

Mr.  (rA)iLA(iHKR.  Yes;  but  v/e  think  it  is  reasonable  to  assume  it  is 
retaliatory  against  tins  (iountry. 

The  Chairman.  Do  y<m  know  what  articles  produced  in  Frf  >'"e 
were  advanced  in  the  Wilson  1)1111 

Mr.  ( I ALLAtaiEii.  I  stated  1  could  not  give  you  that  stat^^i  '. 
accurately, 

THE  RETALIATORY  MEASURES  OF  FRANCE. 

Mr.  Tawnev.  Mr.  (lallagher  is  sj>eaking  now  of  the  a(ivance  ol  duty 
under  the  McKiidey  Act.  These  retaliatory  measures  were  enacted  in 
France  alter  the  passag<>i  of  the  McKinley  Act? 

The  Chairman.  Not  afU-r  the  passage  of  the  Wilson  bill? 

Mr.  CiALLAUhee.  No,  sir;  they  were  in  elfect  before  the  Wilson  bill 
passed. 

The  Chairman.  When  did  the  trouble  of  the  American  millers  begin 
with  [''ranee  if 

Mr.  CALLAcniEE.  About  six  months  after  the  operation  cf  the 
McKinley  Act.  Now,  if  we  understand  the  (H)ndition  of  trade  in 
France,  we  will  go  to  the  consideiatioti  of  Ciermany. 

Mr.  I)(»ixiver.  Let  us  eoutiue  ourselves  to  tboae  countries  with  whkU 
Wti  have  I'eciprucaJ  treaties. 


RECIPROCITY    STATEMENTS. 


229 


u  that  bill 


Mr.  Tawney.  I  think  tlio  inquiry  of  this  committee  ought  to  be  con- 
fined to  those  countries  with  which  we  had  reciprocal  arranj^ements  and 
tliose  countries  which  impose  a  restrictive  tariff  upon  this  product  or 
otlicr  products,  because  we  want  to  tind  out  what  couutries  are  impos- 
ing les^^rictivc  tariffs  and  excessive  restri(!tions. 

The  Ohairman.  Have  you  any  deli..ite  intormution  as  to  whether 
the  tariff  ou  American  flour  in  France  is  placed  there  as  discriminating 
against  the  American  products? 

Mr.  (jALLAOtier.  There  is  no  doubt  about  it. 

The  ('HAiRMAN.  What  evidence  have  yon  on  thai? 

]\Ir.  Gallagiiek.  The  fact  that  they  placed  it  against  our  flour  and 
buy  our  wheat. 

.Mr.  DoLLiviOR.  Might  not  the  object  be  to  build  up  a  great  domestic 
industry  in  their  own  country? 

Mr.  (JallA(tIIE  .  Suppose  that  is  the  object,  and  we  can  i>reveut  it, 
what  of  it? 

Mr.  Tawney.  It  has  the  effect  of  discriminating  against  the  milling 
iiMJu.stry  of  the  United  States? 

Mr,  DoLLiVEK.  I  believe  we  discriminat^'d  in  the  same  way  by 
admitting  raw  materials  free. 

TlieOiiAiiiMAN.  We  put  a  tariff  on  tin  ]»lat<i  for  the  pnrjKtse  of  build- 
ing up  the  industry  here,  and  that  injured  Wales  very  much. 

Mr.  Kerr.  What  objection  is  there  to  Wales  retaliating  against  us? 

T!ie  (JiiAiRMAN.  But  we  did  not  legislate  in  the  way  of  ictaliation. 
I  do  not  thinlv  any  (Jovernuient  does  that.  This  (xovercment  never 
has,  to  my  knowledge. 

Mr.  (jiALi.AGiiEii.  Do  you  uoi;  recollect  the  beef  retaliation?  Wo 
opened  up  the  markets  of  (lermany. 

Tlic  (JiiAiiiMAN.  That  was  to  meet  an  emergency  that  cxisttd  tlu'r<^ 
We  always  legislate  for  the  juirposr of  developing  home  industries,  and 
then  if  knowledge  is  brought  to  this  country  that  some  foreign  (loxern- 
ments  are  retaliating  upon  us  be<;auseof  our  effort  to  i)rotect  American 
citizens,  why  then  we  have,  as  in  the  instance  of  meat  products,  author- 
iz(>d  the  President  of  the  United  States  to  retaliate. 

Mr.  Tawnev.  There  is  one  (juestion  I  want  to  ask  you.  Dees  France 
im])ose  ujwn  the  wheat  of  the  United  States  imported  into  that  country 
a  higher  duty  than  wheat  imported  into  that  country  from  any  other 
country? 

Mr.  (tALLAGiier.  I  am  inclined  to  think  that  France  has  now  in 
operation — 1  am  not  positive,  but  it  has  been  stated  that  Unssia  has, 
by  the  terms  of  some  recent  treaty,  an  advantage  in  France  in  the  sale 
of  wheat. 

Mr.  Tawney.  So  that  if  France  is  not  imj)()sing  a  higiier  duty  upon 
American  Hour  than  it  imposes  upon  the  flour  imported  from  any  otiiei 
country,  then  there  is  no  discriminating  tariff  against  us  in  favor  of 
other  nations? 

Mr.  (lALTAGiiER.  No;  not  under  tho«e  circumstances;  but  there  is  a 
discrimination  against  ou':  flour  in  favor  of  wheat,  and,  to  that  «'xtent, 
discrimination  against  an  American  manufacturing  iiulustry. 

Mr.  Tawney.  It  could  not  be  a  discriminating  tariff  unless  that  tariff" 
was  higher  on  a  product  exj'orted  from  this  country? 

The  Ohairman.  Unless  the  Ameri<'an  product  had  to  imy  a  certain 
per  cent  more  than  the  Russian  product  or  the  Argentine  product  ? 

Mr.  Gallagher.  That  is  one  view  of  it,  but  yet  it  discriudnates 
against  our  flour  in  favror  of  our  wheat. 

The  Chairman.  You  can  assume  that  simply  they  did  not  put  a 


230 


RECIPROCITY   STATEMENTS. 


«>! 


liif>iier  duty  on  that;  it  is  no  discrimination  against  us;  it  is  a  domes- 
tic arrangement  tliat  France  has  a  rij>ht  to  indnlge  in  without  any 
complaint  on  the  part  of  America.  The  only  instance  where  we  can 
make  any  complaint  is  if  France  imposes  a  highei-  duty  upon  the  wheat 
or  dour  that  is  shipped  from  America  than  she  does  on  the  ijroduct  of 
the  Argentine  llepiiblic,  liussia,  or  any  other  wheat-producing  countries. 

Mr.  Tawney.  Do  you  find  that  our  flour  pays  a  higher  duty  than 
flour  imported  into  France  from  any  other  country? 

Mr.  <iALLA(riiER.  1  do  not  know  of  an  instance  of  that.  Eus.sia  has 
an  agreement  with  Germany  by  which  (^v«'n  her  grain  goes  in  ahead  of 
ours  ivnd  our  millers  are  shut  out  entirely,  and  they  only  buy  oui-  grain 
when  they  need  some  fragments.  There  is  a  discrimination  against  our 
flour. 

THE   1)UTIES   ON   FLOUR   IN   CUBA. 

Mr.  Taavney.  I  want  to  ask  one  question  in  relation  to  Cubn.  You 
say  immediately  upon  the  abrogation  of  the  commercial  arrangement 
with  Spain  that  Si)ain  imi)osed  a  higher  duty  upon  flour  imported  into 
Cuba,  and  that  higher  duty  applied  only  to  American  Hour? 

Mr.  (lALLAmiER.  Yes,  sir. 

JNIr.  Taw^iey.  And  it  was  how  much  per  barrel? 

Mr.  Gallagher.  It  was  sulliciently  more  per  barrel  on  American 
flour  thiiTi  on  any  other  flour  entering  Cuba  to  shut  it  out. 

Mr.  Tawney."  It  was  $4.13  a  barrel? 

Mr.  GALLAfHiER.  Through  the  '^.tforts  of  Mr.  Gresham — I  represented 
the  millers  be.'ore  the  State  Department  and  presented  the  case,  and 
through  the  efforts  of  Mr.  Gresham  and  the  State  Department — the 
taiilf  on  American  flour  entering  Cuba  was  restored  to  the  second 
column. 

Mr.  J)oLLiVER.  So  there  is  now  no  discrimination? 

Mr.  Gallacher.  There  is  no  discrimination  as  between  nations, 
Spam  holding  all  of  the  advantage  in  those  islands. 

Mr.  Dolliver.  You  still  go  into  the  amount  of  nearly  -U)0,(K>0  barrels 
a  year  ? 

Mr.  (rALLAfiHER.  Yes,  sir;  I  make  that  Cuban  tariff",  Mr.  Tawney,  a 
little  higher.  You  know  there  are  some  i)ort  dn.esdown  there,  etc.,  and 
that  puts  it  at  al)out  $f.Hi. 

Mr.  Tawney.  Now  the  duties  paid  on  flour  imported  into  Cuba  is 
$4.i;{  and  some  incidental  charges  growing  out  of  their  regulations 
added  ? 

Mr.  Gallagher.  That  is  it.     A'',  countries  pay  this (hity  save  Spain. 

Mr.  I'am'NEY.  What  wiisthe  duty  before  the  repeal  of  the^iMjiprocity 
clause  of  the  act  of  ISiK)? 

Mr.  (lALLAOTiEii.  Eighty  eight  cents  per  barrel. 

Mr.  Tawney.  So  Anu'iican  flour  under  the  re<'iprocity  treaty  paid 
88  cents  i)er  barrel,  ami  since  the  repeal  of  the  reciprocity  clause  of  the 
act  of  18JK>,  American  flour  i)ays  •i<f.l3  a  barrel? 

Mr.  GALLAdHEH.  Yes,  sir;  that  is  a  fnct. 

Mr.  Tawney.  Another  question.  During  tlie  existence  of  this  reci- 
procity treaty,  did  flour  imported  from  other  countries  pay  more  than 
88  cents  })er  barrel? 

Mr.  GAi>r,A(!iii:R.  They  did  not  import  any  from  other  countries,  save 
Spain.  I  do  not  know  what  the  tariff  on  flour  from  countries  other 
than  the  ITidted  States  was,  l)ut  it  was  doubtless  the  i)resent  rate.  No 
other  country  can  sell  flour  there  if  you  let  Americans  into  the  market. 

Mr.  Tawney.  That  is  due  largely  to  the  advantage  the  American 
producer  had  under  the  reciprocity  treaty  with  Spain! 


^^lMMl 


RECIPROCITY    STATEMENTS. 


231 


1  a  domes- 
til  out  any 
re  we  cau 
the  wheat 
•rodiict  of 
countries, 
iluty  than 

'ussia  has 
I  ahead  of 
our  grain 
jaiihst  our 


ha.  You 
iingeinent 
Mted  into 


'Vinerican 


^resented 
case,  and 
lent — the 
e  second 


nations, 

0  barrels 

awney,  a 
etc.,  and 

Cuba  is 
!uhitions 

e  Spain, 
^iprocity 

iity  paid 
s(!  of  the 


lis  reci- 
tre  til  an 

es,  save 
?s  other 
ite.  No 
niiirket. 
uicrican 


Mr.  GALLAGnER.  Yes,  sir.  For  instance,  Spain  gets  into  Cuba  free. 
Spain  bays  our  wheat  and  mills  it  in  bond,  as  it  were,  and  sends  it  into 
Cuba.  Now  we  can  pay  88  cents  in  Cuba  and  whip  Spain  out  of  the 
market,  even  with  her  going  in  free;  we  did  do  it.  Nobody  else  got  a 
show  in  there.  Another  poir*",  j,^utlemen,  if  you  please,  I  would  like 
to  present  to  you. 

THE   TRADE   WITH   MEXICO. 


We  are  situated  right  on  the  border  of  Mexico,  a  nation  with 
i;>,000,()00  people.  We  have  never  sold  them  over  55,000  barrels  of 
Hour  in  a  year.  They  are  people  who  pay  $-0  a  barrel  for  flour  to-day 
lor  which  you  gentlemen  are  paying  from  $4  to  $5. 

Mr.  DOLLIVER.  But  they  do  not  eat  a  great  deal  of  it? 

Mr.  Gallagher.  Who  would  at  that  price — and  poor  people  at  that! 
There  are  13,000,000  people  there,  nevertheless. 

Mr.  DoLLiVER.  They  are  not  what  might  be  called  a  white  bread 
coinmuiiity? 

'Mr.  Gallagher.  Well,  perhaps 

Mr.  MoLaurin.  Do  they  buy  flour  there? 

Mr.  Gallagher.  They  do  not  eat  it;  they  have  not  got  it. 

Mr.  MoLaurin.  Then  they  do  not  buy  it? 

Mr.  Gallagher.  The  point  I  want  to  present  to  you  is  this:  There 
are  13,00(),000  of  people  there  to  whom  we  can  sell  breadstuff's.  The 
federal  tariff"  on  flour  is  $7.84. 

Mr.  Dolliver.  Why  is  that? 

Mr.  Tawney.  Tt  is  over  $10  a  barrel. 

Mr.  Gallagher.  Gentlemen,  I  will  get  to  that  in  a  moment.  There 
is  an  internal  tariff"  in  Mexico 

The  Chairman.  From  one  State  to  another? 

Mr.  (tAllagiikr.  No,  sir — worse;  from  one  locality  to  another;  for 
instance,  one  town  will  have  a  different  tariff"  from  another.  If  you 
bring  a  barrel  of  flour  into  the  city  of  Chihuahua,  thence  to  another 
town,  even  in  the  State  of  Chihuahua,  every  town  puts  its  own  tariff 
on  it,  and  you  pay  it.  You  can  get  a  tariff  on  a  barrel  of  flour  of  about 
$lfi  :n  Mexico. 

Mv.  DoLLiVKR.  Then  it  is  very  hard  to  do  business  with  Mexico 
unless  you  induce  them  to  revise  their  revenue  system  from  the  top  to 
the  bottom  i 

Mr.  Gallagher.  I  think  that  is  a  laudable  understanding. 

Mr.  Dolliter.  I  agree  with  you. 

Mr.  Gallagher.  It  is  a  laudable  enterprise,  gentlemen;  and  that  is 
a  part  of  the  business  we  have  before  this  committee.  As  I  say,  there 
are  13,000,000  of  people  down  there,  and  they  do  not  raise  enough  wheat 
to  feed  1,000,000,  and  their  flour  costs  anywhere  from  $18  to  $20  a 
barrel. 

The  Chairman.  And  consequently  they  do  not  eat  much  of  it? 

Mr.  Gallagher.  They  do  not.  At  one  time  we  had  free  tradewith 
Mexico  on  corn,  and  Kansas  City  sold  in  three  months  nearly  7,000,000 
bushels  of  corn  to  them,  so  that  shows  what  the  Mexican  trade  means 
if  we  could  get  it.  If  we  can  induce  the  extension  of  markets  in  Europe 
we  will  be  glad  to  do  it.  For  ourselves,  if  we  can  just  extend  the  mar- 
kets to  the  South  and  Southwest  we  do  not  want  anything  better  in 
the  West.  Now,  the  Wilson  Act,  as  you  gentlemen  know,  just  now  cuta 
the  tariff"  on  lead  ore  in  two  and  let  hides  in  free 

Mr.  Dolliver.  Hides  had  been  in  free  since  1883, 

Mr.  Gallagher.  Well,  live  stock 

Mr.  DoLLiVBB.  fieduced  the  duty  on  liye  stock* 


If 


^  n 


A\\ 


2^2 


RECIPROCITY    STATEMENTS, 


Mr.  Gallagher.  Giviiig  the  only  market  possible  to  tbern 

Mr.  DoLLiVER.  Witliotit  asking  ainy  reciprocity? 

Mr.  Gallaq-her.  Witliout  asking  anything.  Thfre  is  great  ga^fn  to 
be  made  by  both  countries  by  a  reciprocal  commercial  treaty  l)€tweeu 
the  United  Startes  and  Mexieo.  I  will  tell  you  we  can  reduce  the  price 
of  coffee  in  this  country  by  liaving  that  sort  of  deal  .vith  Mexieo,  because 
we  can  reduce  transportutioii  charges 

Mr.  DoLLivER.  If  you  undertake  to  let  lead  ores  in  free  we  would 
heai*  from  some  of  the  fellows  in  that  business. 

Mr.  Gallagher.  You  can  hear  from  all  the  lead -ore  people  in  this 
country — they  can  come  in  a  bunch,  and  they  have  a  habit  of  doijig 
that,  but  the  millers  have  not — but  you  can  take  all  the  lead  ore  people 
in  this  country,  and  all  the  iron  ore  people,  and  all  the  iron  mills  in  this 
conntiy,  and  steel  mills,  and  put  them  together  and  bring  them  here 
and  mass  their  influence,  and  you  have  not  anything  to  compare,  gen- 
tlemen, with  the  influence  of  the  people  who  are  interested  in  wheat 
and  the  making  of  flour  in  this  country,  and  you  will  discover  that. 
That  is  an  absolute  fact. 

Mr.  DoLLiVEK.  That  is  a  very  emphatic  stf,tement,  but  the  census 
indicates  that  the  valuation  of  the  poultry  crop  of  the  country  is  in 
excess  of  the  value  of  the  wheat  crop. 

Mr.  GALLAfrHER.  We  do  not  engage  in  commerce  with  poultry;  we 
eat  that. 

Mr.  Johnson.  Onr  foreign  (commerce  in  that  does  not  anionnt  to 
anything. 

Mr.  GallagtIIER.  Since  you  raised  the  question  of  i)Oultry,what  are 
the  exports;  I  would  be  glad  to  know  that? 

THE  FORMER  EXPORTS  TO  FRANCE. 

Mr.  Tawney.  Before  you  sit  down  I  wish  to  correct  a  statoment  you 
made  here.  You  stated  that,  when  we  exported  flour  to  France,  our 
export  trade  to  Frarvce  was  materially  injured  in  consequence  of  the 
duties  imposed  under  the  act  of  1S\)0,  known  as  the  McKinley  law.  J 
want  to  call  your  attention  to  the  figures  presented  by  the  Treasury 
Department.  In  1892,  when  we  had  the  McKinley  bill  in  force,  we 
exported  to  France  210,402  barrels  of  flour,  valued  at  $l,17<S,47r),  and 
in  the  year  181)5,  under  the  ])resent  tariff  law,  our  export  of  flour  to 
France  was  1,102  barrels  of  flour,  valued  at  $4,174;  so  you  are  mis- 
taktMi  in  saying  these  discriminating  duties  imposed  by  France  are  due 
to  a  high  tariif  imposed  by  the  act  of  181)0  upon  products  of  France 
imported  into  this  country. 

Mr.  Gallagher.  Your  statement  of  the  trade  of  181)2,  which  is  the 
greater  volume,  Avas  accomplished  Iwjfore  the  retaliatory  legislation 
spoken  of  by  me  became  effective;  ajul  then  you  stated  the  trade  of 
]8it5,  which  has  dwindled,  but  whi(!h  was  accomplished  alter  the  French 
retaliatory  legislation  was  in  effect,  all  of  which  seems  to  prove  my 
argument. 

Mr.  Tawney.  No;  the  motive  of  the  legislation  existed  in  1890,  when 
the  act  of  1800  was  })rtssed. 

M  r.  Gallagher.  I  would  not  like  to  hold  to  that,  because,  as  I  stated, 
it  was  a  matter  of  six  months,  or  thereabouts,  after  the  McKiidey  Act 
went  into  effect  that  France  retaliated.  I  do  not  know  the  exact  time, 
but  you  see  it  reflected  in  the  fignree  you  quote. 

Mr.  Tawney.  Oar  exports  of  flour,  according  to  the  Treasury  state 
ment,  increased  to  210,402  in  1892,  jmd  from  1892  to  ISOT)  our  exports 
of  flour  to  France  decreased  to  1,102  bturrels,  valued  at  $4,174. 


RECIPROCITY   STATEMENTS. 


233 


at  ^f»Tn  to 

l>€tween 

the  i)ricc 

3,  because 

we  would 

le  in  this 
of  doitig 
»re  people 
lis  iu  tins 
hem  here 
)are,  geii- 
in  wheat 
Ter  that. 

le  census 
itry  is  in 

iltry;  we 

inonnt  to 

what  are 


nent  yon 
i.nce,  (Hir 
:!e  of  the 
law.     J 
Treasury 
orce,  we 
47r>,  and 
Hour  to 
are  mis- 
are  due 
France 

!h  is  the 

i.sliition 

trade  of 

French 

fove  my 

i),  when 

stated, 
iley  Act 
ct  time, 

y  state - 
exports 


The  CHAIKMA.N.  In  other  words,  it  rncreased  under th«  McKinley  bill 
and  decreased  uiidev  the  Wilson  bill? 

Mr.  GArxAGHER.  That  is  very  natural  ft  shouhl  tmtil  retaliation 
became  etfective. 

Mr.  Tawiney.  You  can  not  attribute  the  decrease  in  out  exports  of 
tlour  to  France  to  the  enactment  of  the  McKinley  laAv,  or  duties  imposed 
by  that  act? 

Mr.  Gallagher.  We  can,  because  of  the  retaliation  against  out 
products. 

Mr.  Tawney.  The  retaliation  must  have  come  siirce  the  McKinley 
Act  was  in  force? 

M  r.  (i  A  j>LA(JirER.  It  naturally  would.  The  fact  is,  we  had  those  reci- 
])rocity  treaties  aiul  our  trade  was  extending  at  all  times,  and  our  mill- 
ers were  enabled  to  compete  in  France  to  better  purpose  because  of 
the  huge  ousiness  they  were  doing  throughout  the  world.  I  believe 
if  our  markets  are  extended  further  we  can  produce  the  greater  votume 
of  flour  still  cheaper. 


STATEMENT  OF  TSU.  AUGUSTINE  QALLAeHEH,  OF  KANSAS  CITY— 

Continued  February  22. 

Mr.  Chairman:  Since  I  was  here  the  other  day,  u^jon  imjuiry  it 
devel<)])cd  that-  France  bas  two  tarilf  stihedules,  A  au^i  B,  like  lS{»M.in 
moie  than  any  other  nation  that  I  could  liken  it  to;  and  as  we  liaveuo 
comniercial  treaty  with  France,  so  Mr.  Emory  informs  me,  who  I  be- 
lieve is  a  good  authority,  anti  who  is  in  charge  of  the  Bureau  of  Sta- 
tistics, we  are  liable  at  any  time  to  be  discriminated  against  by  France, 
just  as  we  were  by  Spain  at  the  time  of  the  abrogation  of  the  re(!iproc- 
ity  in  the  Cuban  tavitt".  At  this  time  France  admits  our  wheat  on  the 
same  basis  of  wheat  from  any  other  eouivtiy,  ami  our  flour;  and  the 
chief  com|>laint  that  the  millers  have  to  make  is  of  the  bounty  business, 
by  which  they  get  our  wheat  into  the  couutiv,  grind  it,  and  get  a 
drawback  on  all  they  export. 

AMERICAN  MILLERS  DRIVEN  OUT   OP  FRANCE. 

The  Chairman.  That  ])ractice,  as  I  understand  you,  has  largely  driven 
the  American  millers  out  of  th(>  Fren(!h  market? 

]\Ir.  Gallauher.  Not  only  that,  Mr.  Cliairmsin,  but  they  have  gone 
into  our  Belgian  trade  and  into  the  British  trade,  and  the  millers  think 
if  we  can  make  snch  commercial  arrangements  with  France,  if  we  have 
a  recii)rocity  law  under  which  to  act,  it  would  bring  them  to  time  in  that 
matter.  In  fact,  we  do  not  doubt  that  at  all.  Now,  with  reference  to 
Kussia  and  the  Eusso-German  treaty,  the  latest  information  in  the  State 
Department  shows  that  we  are  on  an  equal  basis  with  liussia  in  the 
Gernnin  market,  and  that  the  tariff  is  fS.3,S  per  ton  on  wheat  and  $17.30 
per  ton  on  flour.  Now,  I  wish,  with  the  permission  of  the  committee,  to 
arrange  my  former  statement  to  conform  with  that. 

The  Chairman.  Very  well. 

Mr.  Gallagher.  Now  there  were  questions  asked  the  other  day 
concerning  our  reciprocity  treat  es,  and  for  the  convenience  of  the  com 
niittee  I  went  into  that  yesterday,  and  1  can  give  that  statement  now 
if  you  (;»re  for  it. 

The  Chaieman.  Very  well. 

Mr.  Gallagher.  Onr  rcciiprocity  treaty  with  Biaail  was  proclaim«d 
April  1,  1891.    It  admitted  flour  tree. 


234 


RECIPROCITY    STATEMENTS. 


The  Chairman.  Into  Braziliiin  markets? 

Mr.  (xALLAGiiER.  Yos,  sir;  in  the  United  States  of  Brazil.  The  tariff 
on  Hour  in  Brazil  now  is  42  cents  per  barrel.  The  reciiprocity  ti.  ity  of 
this  country  with  Spain,  coverinf>'  the  markets  of  Cuba  and  Porto  Kico, 
was  proclaimed  September  1,  iSDl.  It  admitted  flour  at  $1  per  100 
kilos,  about  88  cents  per  barrel.  The  present  tariff  is  ^A.KJ.  The  reci- 
procity treaty  with  the  Republic  of  Satito  Domingo  was  ])roclaimed  on 
the  sume  date,  Sei)tember  1, 1801,  and  all  the  breadstuffs  that  are  men- 
tioned in  the  schedules  are  admitted  free.  There  is  a  tariff  now  of  $4.00 
per  barrel  on  flour.  The  treaty  with  Great  liritain,  includiiif?  Trinidad, 
Barbados,  the  Windward  and  Leeward  islands,  liritish  Guiana,  and 
Jamaica  was  proclaimed  February  1, 1892,  under  which  bre.adstutts  paid 
25  per  cent  ad  valorem.  Now  the  tariffs  range  from  72  cents,  the  lowest, 
to  $1.92,  the  highest,  per  barrel.  The  Guatemala  treaty  was  proclainuMl 
May  18, 1802,  and  giain,  corn  meal,  and  all  breadstuffs  mentioned  in  the 
schedule  were  admitted  free.  There  is  a  tariff"  now  imposed  of  $2.(55  per 
barrel  on  Ihmr.  The  Honduras  treaty  was  proclaimed  April  .'50,  1802, 
at  which  time  the  taritl'  was  50  (jciits  per  barrel.  That  was  abolished, 
and  since  the  abrogation  of  the  treaty  there  was  a  duty  of  25  cents  })er 
barrel  imi)osed.  The  treaty  with  Germany  was  proclaimed  .luiie  .JO, 
1892,  at  which  time  the  tariff"  was  $2.60  per  100  kilos,  and  the  treaty 
reduced  it  to  $1.74. 

The  question  was  raised  the  other  day  as  to  the  tariff  charges  of 
France  on  our  breadstuff's,  which  at  ])resent  amounts  to  9(U  cents  per 
100  kilos  on  wheat,  and  the  flour  tariff  is  graduated  according  to  the 
percentage;  we  distinguish  them  in  th^s  country  by  grades,  ranging 
from  family  up  to  patent,  and  that  is  graduated  from  $1.54|  up  to 
$2,317',  l>er  100  kilos,  showing  (piite  a  large  margin  in  favor  of  the  wheat 
as  against  the  flour.  In  addition  to  which,  this  drawback  of  wliich  wo 
speak  is  made  operative  and  effectually  shuts  our  millers  out  of  these 
markets. 

Now,  the  use  of  the  word  "discTimination,"  I  find  as  ai>plie(l  by  the 
milling  interests  of  fhis  country  and  applied  by  this  committe*^  does  not 
agree.  Now,  the  millers  are  satisfied  f'yare  discrimimited  against 
when  grain  is  admitted  on  one  basis  and  flour  on  anotlier,  and  they 
think,  in  consideration  of  the  great  importance  of  the  milling  industry 
to  the  people  of  this  country,  that  this  (rovernment  should  make  such 
arrangements  with  all  commercial  nations  as  would  admit  them  on  an 
equality. 

The  CnAiiiMAN.  That  is,  flour  on  an  eipiality  witr.;  the  wheat? 

Mr.  Gallagher.  Yes,  on  an  equality  with  tlie  wheat.  Then  with  iha 
machinery  that  the  American  millers  have  at  their  comnumd  ami  the 
excellent  wheat  they  always  have,  they  feel  able  to  compete  with  any 
peojde  in  any  market  unless  it  is  taxed  so  it  is  prohibitive  to  all  people. 
That  is  the  ])hase  of  thecjuestion  that  the  millers  would  have  fhis  couj- 
mittee  take  into  its  most  serious  consideration,  and  in  doing  that  to  take 
into  consideration  the  great  importance  and  the  far-rea(!hing  efiect  of 
the  successful  as  against  the  unsuccessful  operation  of  American  mills. 

THE  MILL-BUILDING  INDUSTRY. 

Now,  there  is  a  phase  of  that  question  I  did  not  bring  to  your  atten- 
tion the  other  day,  and  that  is  the  mill-building  industry  of  the  United 
States.  There  are  in  this  country  to  day  some  thirty  large  machine 
8ho])S  and  foundries,  and  many  of  them  are  manufacturing  institutioiss 
of  tlie  very  first  inqjortance,  all  of  them  devoted  to  the  building,  rebuild- 
ing, and  repair  oi  tloux  mills  and  like  iudustriea. 


BECIPROCITY    STATEMENTS. 


235 


The  tariff 

i  ti.  ity  of 
'ortoKico, 
1  per  100 
Tlie  reci- 
laiincd  on 
fc  ai'o  inen- 
w  of  $4.00 
Trinidad, 
ianji,  and 
itntts  pnid 
lie  lowest, 
roclaiuKMl 
nod  in  the 
$2.05  j)er 
I  30,  18!)2, 
ib()lislie<l, 
cents  per 
.Jane  .'{(), 
he  treaty 

larpfo.s  of 
3ents  per 
ig  to  the 
I  rangiiifif 

4;^  »!>  to 

lie  wheat 

vliieh  we 

of  these 

il  by  the 
loea  not 
aji^ainst 
nd  they 
ndnstry 
ce  stujh 

|n  on  an 

? 

villi  the 
irid  the 
ith  any 
people, 
is  eom- 
to  take 
(fleet  of 
1  mills. 


atten- 

linited 

laehine 

jntions 

)build- 


The  OKAreMAN.  Where  are  these  institutions  located  in  a  general 
way  ? 

Mr.  Gallagher.  They  are  located  in  Milv^ankeo,  in  Chicajjo,  in 
Indianiii)olis,  in  Moliiie,  in  Hudalo,  in  Chanibersbarj'-,  in  Jackson,  Mich., 
and  a  dozen  other  places,  and  in  many  of  those  cities  the  mill-building 
institutions  are  not  only  prominent  in  the  country,  but  they  are  the 
leading  institutions  in  those  cities. 

The  CiiAiKMAN.  Can  you  give  an  estimate  approximately  of  the 
number  of  enii)loyees  who  are  engaged  in  the  services  of  these  thirty- 
odd  industries  of  which  you  speak? 

Mr.  Gallagiieu.  Well,  that  would  be  very  hard  to  do,  l)nt  I  i^an 
give  you  an  idea  of  what  that  would  be.  In  lndianai)olis  tiieie  are 
two  very  prominent  concerns — I  ex])ect  it  would  not  be  exactly  wise  to 
give  their  names  in  this  connection  ? 

The  Chairman.  Not  necessarily. 

Mr.  Gallagher.  There  are  two  prominent  concerns  to-day  eni]iIoy- 
ing  a  thousand  men  each,  1  presume,  and  they  have  been  up  to  J,r)0() 
and  2,000  men.  In  Milwaukee  the  lirst  manufacturing  industry  of  that 
city  is  a  mill-building  concern.  The  pro«luct.  of  the  foundries,  machine 
slioi)s,  of  the  year  I  have  taken  all  my  (igures  from,  l.SOO,  was  $112,000,000. 
Thut  is  the  metal  machine  product.  Now,  adding  to  that  the  wood, 
and  I  have  made  a  hurried  calculation  from  the  machinery  representa- 
tion in  the  census  report,  and  I  believe  that  the  mill  building  industry 
in  this  country  will  amount  to  more  than  10  per  <;ent  of  the  miichinery- 
eniploying  industries  of  the  country.  Now,  that  may  h)ok  big,  but 
when  you  come  to  take  into  consideration  the  immense  number  of  mills 
there  are  all  over  the  country,  and  that  they  have  to  be  ie])aired  every 
year,  if  they  have  money  to  pay  for  it,  it  is  an  immen.se  industry;  and 
there  is  not  an  industry  in  the  United  States  to  day,  1  dare  say,  that 
is  conii)laining  louder  of  the  dull  times  and  hard  business,  and  it  is 
altogether  due  to  the  fact  that  the  mills  are  not  prosperous;  and  they 
are  not  building  achlitions,  they  are  not  buying  new  maciunes  to  rei)lace 
old  ones,  as  they  believe  they  will  be  easily  enabled  to  do  if,  by  the 
enactment  of  su(!h  a  law  as  is  proposed,  they  should  be  restored  to  their 
old  markets,  and  have  a  fighting  chance  for  new  ones  abroad. 

the  consolidation  of  manufactories. 

The  Ohatrman.  Th"'<  question  has  been  suggested  to  me  and  T  would 
like  to  hear  you  upon  this  i)hase  of  it;  that  one  thing  that  has  atfe<!ted 
the  milling  industry  of  the  country  is  the  fact  that  such  a  large  capital 
has  gone  into  special  concerns  like  Pillsbury's,  of  Minneajxtlis,  and 
those;  mills  which  are  now  controlled  by  an  F^nglish  syndicate,  and  they 
are  enabled  to  manufacture  flour  on  so  large  a  scale  tliat  they  are  wip- 
ing out  the  smaller  mills  all  over  the  country.  This  subjiH't  was  brought 
to  my  attention  by  millers  in  Illinois.  Now,  I  would  like  to  hear  fium 
you  on  that  subject,  if  you  have  any  information  to  give  me  and  the 
committee. 

Mr.  Gallagher.  Well,  sir,  I  do  not  hesitate  to  states  to  you,  for  the 
use  of  the  committee,  or  for  any  public  use  you  want  to  make  of  it,  that 
1  think  that  the  I'idsbury  Washburn  Comjiany  you  mention  as  one 
procures  the  highest  grade  of  prices  in  this  country.  Now,  it  matters 
not  ho.v  cheap  a  man  can  manufacture,  if  he  does  not  demoralize  the 
market  by  selling  cheap  it  does  not  injure  that  markcit,  does  if?  It  is  a 
matter  of  fact  throughout  the  country  and  abroad  that  the  pri(!es 
obtained  by  that  concern,  and  by  big  concerns  of  like  character,  are 
onil'ormly  above  the  prices  obtained  by  smaller  mills.    Now,  there  is 


li  I 


\ 


23  r; 


RECIPROriTY   STATKMENTS. 


another  phaae  of  that  (juftntion  which  has  come  to  my  »tt«iition  time 
and  nii'.ui)  and  (^onld  he  used  very  well  in  answer  to  your  query.  It 
happens  from  time  to  time  that  a  miller  who  has  neither  the  capacity 
for  mamifiicturinf:;-  Hour,  nor  knowledge  of  the  foreijjn  trade,  takes  it 
into  his  mind  to  beitome  an  exporter  and  he  sets  ubout  it.  Instead  of 
bein{»:  able  to  establish  an  agency  abroa<l,  or  i)erhaps  lie  only  goes  to 
New  York  or  New  England  from  the  West,  and  instead  of  being  able 
to  establish  an  agency  wherever  he  undertakes  to  reach  new  trade  at  a 
distance  .and  engaging  in  the  business  on  a  competitive  basis,  a  great 
many  of  them  have  been  in  the  habit  of  consigning  Hour  an<l  the  (;om- 
mission  men  have  a  merry  time  with  them,  and  the  result  of  it  would 
be  they  wcmld  get  no  ])r()lit  (mt  of  their  business  and  come  to  the  con- 
clusion that  the  big  millers  in  the  trade  were  driving  them  out  of  the 
trade.  Now,  1  think  that  i  untrue  for  the  two  reasons  I  have  given, 
and  for  the  additional  reason  that  there  has  during  a  dull  period  in 
latter  times,  well,  I  will  say  a  time  or  two,  been  attempted  the  forma- 
tion of  a  combimition  for  the  x^^irpo^e  of  not  fixing  the  prii^e  of  the 
manufactured  product,  but  of  .arranging  for  a  cert.aiji  output,  that  is  a 
certain  running  time,  so  as  not  to  Uoocl  the  market  and  overstock  it. 
Well,  these  agreements  were  made  as  nicely  and  looked  as  promising 
as  anything  you  ever  heard  of.  They  were  broken  the  next  day,  and 
tliey  were  never  able  to  put  a  single  one  of  them  into  ette<rt,  for  the  sim- 
ple reason  that  you  can  not  form  a  combine  in  which  there  are  10,()OO 
to  1S,0U()  people  interestetl.  You  might  get  500  to  agree  verbally  to  a 
proposition  but  you  would  not  get  10  to  sign  a  document  on  any  such 
subject,  but  while  the  oOO  gentlemen  were  going  to  do  that  there  would 
be  ;"),(M)0  go  out  and  take  their  customers  away  from  them,  so  I  believe 
the  view  of  the  case  as  given  you  by  the  millers  to  whom  you  refer,  Mr. 
Chairman,  is  not  a  true  guide  in  this  question. 

The  ('iTATRMAN.  So  it  is  not  chargeable  to  any  reduction  in  price  so 
as  to  ciaish  out  the  smaller  millers? 


11- 


TENDENCY  TOWATID   LARGE   CORPORATIONS. 

]\lr.  Gallaoher.  I  will  say  the  tendency  in  the  milling  busim^ss  bas 
been  for  some  years  toward  merging  small  mills  into  larger  corpora- 
tions. That  has  been  one  of  the  results  of  hard  times  so  as  to  reduce 
s-alaries  and  cost  of  ojjerating.  For  instance,  Ihere  is  in  this  river 
valley  a  grade  of  wheat  that  is,  perhaps,  not  exactly  matched  anywhere 
else  in  the  country,  and  yet  beyond  the  ridge  or  mcmntains,  as  the  case 
may  be,  on  the  other  side  another  grade  of  wheat  and  it  is  vastly  dif- 
ferent. Nitw,  take  it  in  Jvansas,  what  we  <'all  Kansas  hard  winter 
wheat,  a  wheat  (•elel)ratod  throughout  the  tlour-eating  world.  That 
Mheat  is  produced  in  a  section  of  southern  Nebruvska,  a  ijortion,  probably 
hall'  the  Htate,  of  Kansas,  and  a  little  of  west  Missouri  and  northern 
and  central  (  lahonm,  and  as  far  as  we  know  it  <ioes  not  do  well  any- 
where else.  It  is  ])roduced  there  better  by  many  ])er  cent  than  anywhere 
else  in  the  world.  Now,  if  that  area  was  one  (lusirter  as  big  you  e<mld 
see  that  those  mills  could  reduce  their  expenses  by  going  into  a  c<u"pora- 
tion.  Wherever  there  is  a  territory  as  narrow  as  to  include — well  I  have 
known  in  Dakota  from  twelve  to  fifteen  mills  under  one  general  man- 
agement, and  that  has  been  during  these  recent  times,  and  that  has 
been  proven  a  failure  because  the  association  failed,  awd  the  millers  have 
not  been  encouraged  to  do  that  sort  of  thing  because  almost  every  time 
they  have  tried  it  they  have  come  to  disaster,  so  that  they  have  come 
to  the  couclusiou  that  it  is  uot  the  hope  of  salvation.    It  is  a  busiuens, 


RECIPROCITY    STATEMENTS. 


237 


ition  time 
luery.     It 
i  capacity 
i,  takes  it 
Instead  of 
\y  goes  to 
►oin}>'  able 
tra(ie  at  a 
s,  a  great 
the  com- 
it  would 
>  the  con- 
»ut  of  the 
ve  given, 
period  in 
je  forina- 
r.e  of  the 
that  is  a 
rstock  it. 
Tomising 
day,  and 
■  the  sim- 
re  10,000 
•ally  to  a 
any  such 
ve  would 
1  believe 
efer,  Mr. 

price  so 


Tess  has 
orpora- 
reduce 
s  rjver 
y  where 
le  case 
itly  dif- 
wiiiter 

That 
obably 
arthern 
II  any- 
>  where 
I  <ould 
ri)ora- 
1  have 

mau- 
at  has 
vs  have 
•y  time 
come 
siueas, 


,1 


as  1  stated  the  other  day^  that  is  not  suHceptible  of  combination,  and 
they  must  go  in  the  open  and  compete  with  the  world  in  the  iiiiirkets, 
and  i*  is  lor  a  chance  to  do  that,  it  is  for  tiie  intiuence  of  this  (Jovcrn- 
nient m commercial all'airs  to  give  them  that  [)Tlvilcge,  that  they  are  [)re- 
senting  this  case  at  this  time. 

Now  1  have  here,  which  I  wish  to  present  before  I  close,  a  petition  of 
the  Kansas  (lity  Board  of  Tradeand  a  docunujnt  setting  forth  'heposi- 
ti(»n  of  the  Chamber  of  Oommerce  of  Cincinnati  with  reference  to  this 
l>ill. 

PETITION  FROM   JJOARDS   OF   TRADE. 

Kansas  Cnv,  Mo.,  Fvhniuri/  lf>,  IS'jG. 
AiJciisTiNK  Gai.laghkr,  Jlolel  lialeujlt,  fl'anhinjiluii  : 

Tlio  I'dl lowing  was  tliis  day  adopted  l)y  tl»e  iiieinherH  of  tlio  Hoard  of  Trade  of 
KaiiHUH  ('ity,  Mo. : 

\\  licreas  it  is  ln-lioveil  that  ilw  nxtnii.sioii  of  foreijiii  iiuirlcets  (or  Aiiicrican  lircad- 
stiiUs,  and  tlie  jjrodncts  of  American  afiriciiltiire  ^<Mit»riilly,  would  Ixi  j^roatly  facili- 
tated by  the  ciiactiiioiit  of  House  hill  I-S212,  iiitrodiioed  by  Mr.  K<5rr,  of  Ohio,  and 
now  being  considered  by  the  Ways  and  Means  L'oiundttoe  of  the  House:  Therefore, 
be  it 

Hrxolred  bij  Ike  Hoard  of  Trade  of  Kansas  Citi/,  Mo.,  Tliat  the  bill  above  mentioned 
lie  jipproved  by  thiH  body,  and  tliat  our  Representatives  anti  Senators  bo  urged  to 
work  for  its  enactment  and  approval. 

\V.  D.  CuAJtUE,  JSeoretary  Board  of  Trade. 


Cincinnati  Cuambkr  ok  Commeuck  ani>  Mki{ciiant8'  Exciiangk, 

Cinchnntti,  Fcbntiiri/  14,  1896. 
Dear  Sir  :  Keferriug  to  conversation  on  yesterday  morning  in  reganl  to  the  posi- 
tion of  the  Cincinnati  Chamber  of  Cominerce  on  the  <[uestion  of  recijirocal  trade,  I 
hand  yon  inclosed  a  sheet  on  which  ajipears  a  proposition  submitted  by  the  Ch.'imbor 
of  Commerce  to  the  Nation))]  lioard  of  Trade  for  consideration  at  its  recent  meeting 
in  Washitigtim  last  month;  also  action  taken  by  our  (Jhaniber  of  t.'ommerce  in  Ajiril, 
1891,  prior  to  the  iido))tion  of  the  Wilson  bill,  wliicli  cleiirly  o.\i)n^sses  the  po.sition 
takt!n  n])on  the  ((uestions  involved.  I  will  say  further  that  at  the  last  meeting  of 
the  board  of  directors  of  our  associalioTi,  on  l'\'bruary  4,  the  bill  known  as  House 
hill  3212,  introduced  by  Mr.  Kerr,  was  considere<l  und  rci'errtMl  to  a  committee  for  a  n;- 
port.  1  am  jnstitied  in  assuring  you  that  this  committee  will  re])ort  favorable  to  this 
bill,  t.aking  a  position  by  wliicli  onr  (.Congressmen  will  bo  nrg(;d  to  su]i|)ort  it.  You 
will  tL<'refort^  see,  that  our  association  has  taken  a  we'.i defined  stand  on  this  i|ucstion. 
VViahiug  you  success  in  your  elforts,  I  am,  tiuly,  yours, 

C.  B.  MiiiiRAY,  Sw^erhUettdeitt. 
Mr.  Aug  UBTiNE  Gallagher,  Washington,  D.  C.  i 


SuuMirrKD  BY  Cincinnati  CnAMuiiiR  ok  Com.mkrck  to  Mi:eting  o*'  the  National 

Board  of  Trade,  January,  18%. 

Peaolved,  That  the  National  Hoard  of  Trade  renews  its  appeal  to  the  ('ongrt^s  of 
the  United  States  to  promptly  a<loi)t  measures  for  tlio  establishment  of  re<'iprocal 
trade  relations  with  Camilla,  with  Mexico,  and  with  the  States  of  Central  and  .South 
America. 

Action  in  Avrii.,  1894,  uy  the  Cincinnati  Chamber  of  C()mmkri;e. 

Whereas  the  jjroposed  revision  of  Lie  tariff  threatens  to  disturb  the  relations  exist- 
ing between  the  United  States  ajid  certain  countries  with  which  rooii)roci\y  trenties 
are  now  in  force,  including  conutries  which  have  develoj»ed  a  large  increase  in  impor- 
tations of  American  products  under  such  reciftrocal  relations,  as,  for  instance,  the 
Island  of  Cuba,  where  importations  of  American  goods  advanced  from  !}i!),OO(),()0(l  in 
1890  to  nearly  $24,000,000  in  1893,  the  gain  including  such  articles  as  machinery, 
tools,  wire,  engines,  agricultural  implements,  steel  bars,  cut  nails,  boots  and  shoes, 
(ionr,  and  a  great  variety  of  other  articles,  which  trade  for  the  most  part  wimld  bo 
destroyed,  to  the  great  injury  of  American  iiulustry,  under  an  abrogation  of  8U(di 
treaties,  a  condition  which  would  necessarily  follow  the  exaction  of  duties  on  articles 
iiuport«Kl  from  snoh  ooantaies  new  ou  the  fres  list:  TharefoDe 


t 


Hi 


238 


RECIPROCITY    STATEMENTS. 


livsiilred  hji  the  Ciiiciuiiuii  Chamber  of  ('ommene,  That  the  inombors  of  the  Fiiited 
Btatoe  Suiiiite,  and  «H|)(M'iully  tlioHn  from  oliict  and  ailjacont  States,  urr  h^ioliy  ear- 
inHtl.v  rotiui'stiMl  to  conHidi-r  tlui  full  inipDrtanco  to  Aiiioricaii  iiidiistiies  of  lostilts 
■wlii(di  would  lollow  Hiiili  intii.  IViciicl' willi  tlio  {^rowin;;;  trade  witli  couiitrii'M  with 
wiiicii  rr('i|>rocit.v  trc^atit^n  are  in  lorcd  as  Iho  alirojjation  of  such  (n-atii'S  would  inii<lj, 
and  thai  llio.v  nro  urj^cd,  i'l  I  ho  conMidoiatKui  of  the  Wilson  hill,  to  koi'p  iii  view  the 
netcssitv  of  maintaining  nn'asunis  in  houic  form  by  whicli  thcro  shall  ho  avoided  a, 
termination  of  conditions  admitlin;;  of  tho  continuanco  and  extension  of  comniorco 
in  the  diri'cl  ion  named. 

Uy  order  of  the  proHident  of  the  (Jiiicinuati  Chamber  of  Commerce. 

C.  H.  Mui{iiAY,  Supirintendent. 
ACTION   OP   THE    NEW    YORK    I'UOUUCE   EXCHANGE. 

Mr.  (iALLA(iHEi{.  1  liave  also  in  liiind,  but  I  will  not  file  with  the 
coininitti'C  for  reasona  I  will  state,  a  letter  which  explains  the  action  of 
the  Produce  lOxciiange  of  New  York.  The  reciprocity  feature  of  tiie 
Kerr  bill,  tlie  bill  for  oxteudinj^  reciprocity,  was  approved  on  Wednes- 
day afternoon  by  the  board  of  inanaf^ers  of  the  I'roduce  Kxchanj^e  of 
Ts'ew  Voik,  but  they  declined  by  an  almost  uiumiinous  vote,  I  am  sorry 
to  adiuit,  but  it  is  true,  to  ap]»r<>ve  the  retaliatory  feature  of  it.  Now,  I 
think  uidess  you  want  the  schedule  of  the  various  treaties  of  all  the 
South  and  Oential  Amcriciin  <'()untries,  which  I  have,  I  am  throuf>h. 

IMiere  is  one  thinj;'  more  1  wish  to  state,  however.  There  was  a  reso- 
lution, 1  believe,  adopted  by  this  committee  providinjj;  for  a  reci[)rocity 
inipiiry.  Tlnit  will  take  you  a  long  time.  It  will  necessitate  a  great 
(b^al  of  delay,  ami  <lelay,  of  course,  is  what  the  millers  do  not  want; 
and  J  think  you  will  lind,  when  yc/U  get  through  with  that  iiuiuiry,  that 
you  will  have  ligures  showing  that  we  lost  Just  about  t'  amount  of  trade 
on  iic(!Ountof  theal)rogation  of  the  reciin'0(!ity  treati'  ^tI  have  stated 
and  odiich  is  reported  in  the  Bureau  of  Statistics  of  t  -iasury  Depart- 

ment. The  sum  total  M'ill  be  that.  However,  if  it  is  determined  by 
the  committee  to  contiiuie  that  imjuiry  at  that  length,  I  will  be  able  to 
tile  with  you  the  nanu's  of  the  large  number  of  exporters  who  were 
directly  interested  in  that  branch  of  the  trade  and  who  are  competent 
witnesses  to  give  evidence  in  the  case. 

The  OnAiiiMAN.  1  think  you  had  better  send  me  a  list  of  the  names, 
and  1  will  submit  the  matter  to  llie  subcommittee  in  view  of  whether 
they  will  take  immediate  action  on  the  Kerr  bill  or  other  of  these  bills, 
or  a  substitute  bill,  or  whether  they  will  deem  it  wiser  to  get  it  from  our 
inquiry.  1  do  not  think  it  is  going  to  take  the  length  of  time  you  imli- 
cate,  because  I  think  with  the  information  and  such  an  exi)ert  as  we 
shall  secure  ami  the  assistance  that  we  will  have  that  we  can  gather 
this  information  very  quickly. 

Mr.  Gallagher.  Well,  I  hope  that  is  the  case,  because  the  milling 
interests,  as  you  know,  have  looked  to  this  Congress 

The  Chaieman,  For  relief  ? 

Mr.  GALLActHEK.  Yes;  and  they  look  to  this  committee,  and  they 
believe  they  are  reposing  a  conlidence  in  the  right  direction.  Every- 
one connected  with  the  trade  was  amazed  at  the  abrogation  of  the  reci- 
procity tieaties,  and  scarcely  bt'lieved  it  or  understood  it,  and  every  day 
of  delay  no\.',  as  you  can  clearly  see,  indicates  to  those  who  are  remote 
from  the  scene  of  action  that  Congress  does  not  think  that  this  industry 
is  half  as  big  as  it  is  or  as  near  as  important,  and  that  it  does  not  amount 
to  much  as  a  matter  of  fact. 

I  thank  you  very  much  for  your  kindness  and  for  the  kindness  of  the 
Cfmimittee. 

Thereupon  the  committee  adjourned,  subject  to  the  call  of  the 
chairman. 


■'  t.j  .1 .  -K-j^.taiif^a^jjii#>ii>-3iiSia 


EECIPROCITY    STATEMENTS. 


239 


lilliug 


I  they 
I'jvery- 
le  reci- 
ry  <l{iy 
l-einote 
lustry 
knount 

lot"  the 
the 


STATEMENT  OF  MR.  CHARLES  A.  PILLSBURY,  OF  MINNEAPOLIS. 

Tlie  (JnAiHMAN.  WouUI  you  be  kiml  eiKnif-h  to  give  the  reporter 
your  lull  Uiinie,  your  JuUliess,  and  what  intt'ivsls  you  represent? 

Mr.  riLiiSHURV.  Charle.s  A.  I'illshury;  I  am  <>eiieral  nianaj-cr  of  tiie 
rillsbury-Wushburn  Flour  Mills  Company  of  iMimieapolis,  wiiich  is  the 
larj;est  milling  plant  in  the  world,  and  1  am  also  pri'sidcnt  of  the 
National  Millers'  Assoeiation  of  the  United  (States;  my  addresa  is  Miii- 
nea|)oliN,  Minn. 

The  Chairman.  Now  you  can  go  on  and  Ktate  if  you  liave  made  any 
etioit  to  extend  your  foreign  tratle,  and  if  so,  by  what  means,  stating 
iu  what  countries  and  with  what  suecsess. 

Mr.  I'lLLSBURY.  1  have  a  law  remarks  in  writing,  which  1  will  read, 
and  then  1  will  state  in  regard  to  that. 

1  appear  before  you,  gentlemen,  in  behalf  of  the  nulling  indnstry  of 
the  United  States,  to  ask  you  to  inaugnrate  such  legislation  as  w  ill  give 
that  industry  a  fair  show  in  the  markets  of  the  world.  As  to  our 
home  markets,  we  ask  no  favors,  for  we  can  hold  our  own  against  all 
comi)etition. 

I  am  ei'ibarrassed  by  the  fact  that  several  millers  have  already 
api>eared  before  you,  and  1  am  ignorant  of  what  they  have  already  said 
to  you,  and  I  nuiy  ])()asiltly  repeat  many  statistics  which  have  abcady 
been  given  you.  1  fear  J  can  tell  you  nothing  new,  but  can  only  emi)ha- 
size  wliat  has  already  been  said  by  those  wlu)  have  pri^ceded  me. 

You  will  appreciate  the  nagnitude  of  the  milling  indnstry  when  I  tell 
you  that  there  were  in  tlic  United  States  ni  18!M>  nearly  "-;o,()0<)  Hour 
mills,  and  the  value  of  their  prodtu i,  basi'd  on  the  very  low  i)rices  then 
prevailing,  was  $r)7o,(K)(),()0().  This  is  about  *l()a,()()(),00()  moie  than 
the  iron  and  steel  industry,  and  nearly  as  large  as  the  wool  and  cotton 
industries  put  together.  These  show  the  overwhelnung  importance  of 
the  milling  iiulustry. 

The  Chairman.  That  is  an  astonisliing  statement,  is  it  not? 

Mr.  I'lLLSBURY.  Yes,  sir.  This  milling  industry  is  contined  to  no 
section,  but  is  established  in  all  parts  of  our  country,  helping  to  main- 
tain the  price  of  the  cereal,  and  greatly  adding  to  the  welfare  of  the 
farming  community,  who  are  the  backbone  of  our  ])eople.  This  indus- 
try has  gradually  grown  up,  with  no  protection  from  our  Government, 
because,  from  the  very  nature  of  things,  home  i)rotecti()n  is  unneces- 
sary. Our  exports  of  Hour  have  gradually  grown  until  in  the  year 
18!)4  they  reached  nearly  17,000,(K)0  barrels.  Of  this  aMi.>unt  over 
11,(KK),0()0  barrels  were  to  the  United  Kingdom,  Oolland,  and  Denmark, 
which  are  about  the  only  countries  in  Europe  that  give  us  a  fair  show; 
and  as  you  well  kiK)w,  these  countries  (;ontain  but  a  small  part  of  the 
po])ulation  of  l*juro])e.  If  we  had  the  same  advantage  in  the  other 
parts  of  Europe,  every  bnshel  of  our  surplus  wheat  would  be  exported 
iu  the  manufactiued  arti(;le  of  flour.  This  great  indnstry  is  threatened 
Avith  serious  harm  ou  account  of  the  unfavorable  legislation  which  other 
countries  are  continually  making  against  us,  and  nu)re  particularly  on 
account  of  the  repeal  of  the  so-called  recii>rocity  clauses  which  were 
enacted  a  few  years  ago.  The  United  States  ]u'oduces  on  an  average 
of  nearly  500,000,000  bushels  of  wheat,  over  one-third  of  which  must  find 
an  outlet  in  other  countries.  .,,    . 

"  '  THE  EXPORT  TRADE  IN  FLOUR. 

Up  to  the  year  1894  exports  had  so  iu(;reased  that  over  one  half  of 
this  exporting  was  being  done  in  the  shape  of  flour;  and  it  has  beeu 
and  is  now  the  aim  of  the  milling  fraternity  iu  the  United  States  to  so 


240 


RECIPROCITY    STATEMENTS. 


push  their  trade  into  foreign  conn  tries  that  very  little,  if  any,  of  the 
wheat  should  be  exported  as  raw  material. 

It  is  not  necessary  for  lue  to  tal<e  the  time  of  yen  gentlemen  to  show 
the  immense  advantage  that  this  would  be  to  this  country  in  the  way 
of  giving  increased  labor  to  our  own  citizens.  This  trade  has  been 
growing  so  rapidly  that  nearly  every  other  country  in  the  world  is  now, 
either  directly  or  indirectly,  legislating  against  it.  V\  hen  tlie  so-called 
reciprocity  treaties  were  enacted  in  the  McKinley  bill  the  milling  fra- 
ternity of  this  country  thought  they  saw  a  ray  of  iioi)e  to  extend  their 
trade.  This  was,  of  course,  all  dashed  to  the  ground  when  said  clauses 
were  repealed ;  and  unless  we  get  the  help  of  the  legislative  bodies, 
our  ex]»ort  trade  in  tlour  is  bound  to  <liiiiinish  rather  than  increase. 
To-day  we  have  ])ractically  no  untaxed  selling  territory  aliroad,  except 
Great  Britain,  Holland,  and  Denmark.  Our  tlour  has  been  driven  out 
of  France,  Geruiany,  lielgium,  ami  y  weden  by  heavy  and  discriminating 
tariffs. 

We  are  almost  com])letely  shut  out  of  Mexico,  and  hirgely  out  of 
Cuba.  Brazil  find  other  iSouth  American  countries  have  placed  a  duty 
on  tlour,  in  retaliation  lOr  the  withdrawal  of  reci])rocity  privileges, 
which  is  causing  our  trade  there  to  be  sui)i)lanted  with  flours  from 
other  countries.  Some  countries,  like  France,  have  actually  gone  so 
far  as  to  give  a  bonus  to  their  millers  on  tlour  that  they  export  of 
nearly  50  cents  per  ba'rel;  and  if  this  is  not  stoi)ped,  the  French  mil- 
lers will  be  able  to  come  to  i\.merica,  if  necessary,  to  buy  their  wheat 
and  still  drive  the  American  miller  out  of  a  large  number  of  the  mar- 
kets of  the  world,  while  grinding  wheal  grown  almost  at  the  very  doors 
of  the  Anu'ri<'an  miller. 

1  do  not  projwse  to  burden  you  with  figures;  1  i)resume  your  com- 
mittee w  ill  take  steps  to  obtain  all  that  are  necessary  in  that  direction. 

Our  troubles  may  be  »Iivided  into  two  heads,  first,  repeal  of  the 
so  called  reciprocity  treaties,  and,  second,  unfavorable  legislation  by 
other  countries. 

As  to  the  first  head,  i>erhai>s  Brazil  and  Cuba  are  two  iiotahle  exam- 
ples. Before  the  reciprocity  treaties  were  enacted  we  were  exi)orting 
to  Brazil  about  7'{(),'HU>  barrels  of  tlour  per  annum.  During  the  life  of 
the  reciprocity  treaticN  this  trade  in<*reasod  about  L!00,()(K)  barrels  per 
annum.  iSince  the  repeal  of  the  reciprocity  clauses  this  trade  has  fallen 
oft'  Jiearly  150,000  barrels  per  annun\ 

A  more  notable  example  yet  is  that  of  Cuba.  Before  the  reci|»rocity 
treaties  wen;  enacted  our  trade  in  Cuba  was  a  little  over  100,000  bar- 
rels per  annum;  during  the  life  of  the  treaty  the  trade  grew  to  be  over 
050,000  barrels;  since  the  repeal  our  exports  of  flour  to  Cuba  have 
fallen  ofl'  nearly  one-half. 

These  figures  do  not  give  the  full  efl'ect  of  the  enactment  and  re;»eal 
of  the  reciprocity  treaties.  From  the  very  nature  of  things  a  consump- 
tive article  like  Hour  has  to  gradually  grow  into  use.  If  [>eople  have 
been  in  the  habit  of  using  <ine  kind  or  quality  of  Hour,  and  cooks  are 
educated  in  that  direction,  it  takes  a  good  little  while  for  them  to  use 
Hour  of  a  diH'erent  make  and  texture,  and  so  the  theory  of  the  millers 
of  the  United  States  is,  if  the  recii)rocity  treaties  had  been  allowed  to 
stand,  that  this  increase  would  have  gone  on  year  by  year  until  all  the 
suri)lus  wheat  of  this  country  would  have  been  exported  in  the  shape 
of  llour. 

EXAMPLE  OP   UNFAVORABLE  LEGLSLATION. 

An  example  under  the  seeoml  iieadof  unfavorable  legislation  I  have 
;'\eady  ?'':rerred  to:  France  iM?xt  to  the  United  States  is  the  largeisit 


RECIPROCITY   STATEMENTS. 


241 


y^,  of  the 

to  show 
the  way 
lias  been 
I  is  now, 
so-called 
lliiif;-  fra- 
'ikI  their 
1  clauses 
s  bodies, 
increase. 
1,  except 
iven  out 
ninating 

y  out  of 
(I  a  duty 
ivileges, 
irs  from 
••one  so 
ixport  of 
Mich  mil- 
ir  wheat 
the  mar- 
ry doors 

our  com- 
irectioii. 
1  of  tlie 
Uion  by 

c  cxnni- 

p(>rtin<>' 
ic  life  (if 
[ids  per 

IS  fallen 

|i|»rocity 
(00  bar- 
be  over 

Da  have 

rei»eal 
|iisuiiip- 
Je  have 
|oks  are 

to  u.se 
millers 
)wcd  to 

all  the 
[.  shape 


I  have 


wheat-producing  country  in  the  world,  and  it  is  also  one  of  the  largest 
if  not  the  largest,  wheat  consuming  country  in  the  world.  They  have 
placed  a  duty  on  our  flour  of  $1.90  to  $2.75  per  barrel,  while  the  duty 
on  wheat  is  but  37  cents  per  bushel.  This,  in  itself,  is  very  largely  a 
discriwiination,  besides  which  they  have  arranged  a  system  of  "draw- 
backs" on  flour  that  their  millers  export  to  other  countries,  whereby 
there  is  a  prolit  of  nearly  50  cents  per  barrel  for  the  French  miller  to 
buy  foreign  wheat  and  then  export  his  flour.  That  iS  to  say,  he  gets 
I'carly  50  cents  per  barrel  more  (as  drawback)  on  the  flour  exported 
than  lie  pays  on  the  wheat  it  takes  to  make  the  flour. 

In  Germar.y  the  dutj  on  wheat  is  32  cents  per  bushel.  A  corre- 
sponding duty  on  flour  would  be  about  $1.60  per  barrel,  but  their  duty 
on  flour'ls  $2.21. 

All  these  countries  whose  policies  are  so  oppressive  to  the  American 
trade  are  large  exporters  of  manufaciared  goods  to  this  country,  and 
can  therelbre  easily  be  reached  by  retaliatory  legislation. 

It  is  not  necessary  for  me  to  take  up  your  time  as  to  the  equity  of 
reciprocity.  The  arguments  in  favor  of  legislative  aid  and  counte- 
nance to  our  mills  are  so  evident  and  unimpeachable  that  it  would  seem 
as  if  the  facts  would  have  to  be  simply  called  to  your  attention  in  order 
to  have  you  apjily  the  projier  remedy.  That  remedy  can  oidy  come 
iVoni  our  country's  lawmakers,  and  it  is  the  hope  of  the  millers  of  the 
United  States  that  the  lawmaking  power  will  not  permit  an  industry 
upon  whose  prosperity  millions  of  (mr  citizens  directly  or  indirectly 
depend  to  ttruggle  along  against  heavy  and  increasing  odds  as  it  is 
now  doing. 

We  hojie  that  your  committee  will  make  a  thorough  and  exhaustive 
examination  into  this  subject  and  bring  in  the  necessary  bills  to  cor- 
rect the  evil  as  far  a>.  possible.  The  organization  which  I  have  the 
honor  to  represent,  the  National  Millers'  Association  of  the  United 
States,  and  other  organizations  more  or  less  local,  will  be  happy  to 
cooperate  with  your  committee,  in  giving  them  all  information  upon  this 
sulijcct,  and  to  discuss  with  you  as  to  the  proper  remedies.  I  think 
Congress  should  pass  a  bill  broad  enough,  rtrst,  to  <;arry  out  the  princi- 
ple of  reciprocity,  aud  en.able  our  Government  to  make  reciprocity 
treaties  in  this  direction;  second,  to  enable  our  Government  to  place 
retaliatory  duties  against  count'ies  who  are,  like  France  and  Germany, 
plachig  an  unec^ual  and  unfair  duty  upon  the  manufactured  products 
of  our  wheat. 

As  I  said  before,  we  are  not  before  you  for  the  purpose  of  occupying 
your  time  in  leugtliy,  tedious  remarks,  as  we  feel  that  you  have  but  to 
aciiuaint  yourselves  with  the  facts  to  recognize  the  necessity  of  such 
legislation,  and  that  when  you  have  thoroughly  iuvestigated  the  sub- 
jtct  you  will  be  able  to  recommend  proper  measures  aud  to  pass  laws 
uecessary  to  correct  the  evil. 

TEE  DIFFICULTIES   IN  THE  FRENCH  MARKET. 

The  Chairman.  I  wish  you  would  explain  a  little  more  in  extenso 
the  troubles  which  you  millers  have  had  in  getting  into  the  markets  of 
France. 

Mr.  PiLLsnuRY.  The  trouble  we  have  in  getting  into  the  market  of 
France  is,  first,  the  duty  on  flour  is  very  much  larger  than  it  is  on 
wheat;  but  that  is  not  all  of  it.  The  French  are  now  crowdin<r  us  out 
of  other  markets  on  account  of  k.  system  of  rebates  and  dra\N  backs, 
which  gives  a  miller  a  great  deal  more  drawback  oil  tbe  flour  export*i(i 
H.  Kep.  2203 16 


f 


242 


RECIPROCITY    STATEMENTS. 


than  he  has  to  pay  on  the  corresponding  amount  of  wheat.  It  practi- 
cally amounts  to  a  bounty,  but  it  i8  covered  up  by  the  name  of  draw- 
back. Now,  we  fiot  drawbacks  in  this  country,  but  it  does  not  amount 
to  anything,  because  we  never  have  to  import  wjieat;  but  if  we  did,  1 
figure  it  out,  on  bringing  in  wheat  from  Canada,  the  regulations  of  our 
shipments  would  have  to  be  quite  modified  to  overcome  it.  Now,  they 
do  not  even  have  to  export  the  flour  made  from  the  identical  wheat.  In 
this  country  we  would  have  to  take  the  wheat,  grind  it  by  itself,  and 
ex])ort  the  identical  flour. 

The  Chairman.  You  would  have  to  keep  a  sei)arate  account,  so  the 
Government  ofticer  could  see? 

]\Ir.  I'lLLSBi'RY.  Yes,  sir. 

Tlie  Chairman.  How  long  has  this  discrimination  existed  in  France? 

Mr.  PiLLSBURY.  I  should  say  three  or  four  years;  since  I  have 
noticed  the  French  ship])ing  flour  into  other  nuirkefs. 

The  Chairman.  Had  you  at  any  time,  either  before  or  after  the  reci- 
procity clause  of  the  so-called  McKinley  law,  taken  any  steps  toward 
developing  ;iny  trade  in  any  of  the  South  American  States? 

Mr.  PiLLSBURY.  Yes;  but  the  South  American  States  are  a  little 
like  the  Southern  States  of  this  country,  they  use  more  winter  wheat 
flour  than  spring  wheat  flour,  and  I  am  a  manufacturer  of  spring  wheat 
flour. 

The  Chairman.  You  seek  the  colder  countries? 

Mr.  PiLLSBi'RY.  Yes,  sii-.  Now  our  flour  goes  to  the  north  of  Europe. 
Southern  countries  using  American  flour  would  be  likely  to  use  South- 
ern-ground winter  wheat;  flour  from  the  winter  wheat  section  of  southern 
Illinois,  St.  Louis,  Jialtimore,  and  those  flours. 


EFFECT  OP  THE  REPEAL  OP  RECIPROCITY 

The  Chairman.  What  effect,  in  your  judgment,  has  the  repeal  of  the 
reciprocity  clause  of  the  McKinley  bill  liad  upon  the  flour  industry  of 
this  country? 

Mr.  PiLLSBURY.  It  has  steadily  crippled  our  market  for  the  Ameri- 
can product,  and  the  effect  has  not  been  as  bad  on  this  last  crop  as  it 
would  have  been  if  the  winter  wheat  crop  had  been  a  full  crop;  but  this 
last  year  the  winter  wheat  crop  was  comjuiratively  a  fiulure.  We  were 
building  up  and  largely  increasing  our  trade  every  day  in  the  South 
American  countries,  luit  now  the  trade  is  bound  to  diminish. 

The  Chairman.  If  it  of  any  benefit  to  the  wheat  grower  of  this  coun- 
try to  have  his  wheat  milled  into  flour  lather  than  to  have  it  shipped 
abroad  and  milled? 

Mr.  l*ii.L8HURY,  It  is  ar.  Immense  benefit  in  all  times  of  the  year 
except  when  tlie  farmers  are  fairly  deluging  the  markets  with  wheat, 
and  mills  are  ])aying  considerably  more  for  w  heat  than  it  would  be  worth 
to  sell  i»nt  in  larger  nuirl^ets,  8hii)pe(l  direct  as  wheat. 

The  (Jhaiwman.  Then,  if  1  understand  you  correctly,  the  tendency  is 
that  by  such  legislation  as  will  benefit  the  mills  of  this  country  will 
increase  the  ])rice  of  wheat  in  this  country  to  the  producer? 

Mr.  i'lLLsnuRY.  Yes,  sir;  largely  because  if  they  can  make  a  com- 
petition for  wheat  at  hon»e  it  would  give  better  price  for  w4ieat  and  the 
nn'ller  does  not  care  how  high  he  pays  for  wheat,  i)rovi<ling  no  other 
competitor  can  come  in  and  buy  cheai)er  wheat.  The  miller  would  make 
more  money  if  wheat  was  always  a  dollar  a  bushel  than  at  50  cents  a 
bushel,  and  we  would  rather  see  it  a  dollar,  aiul  this  milling  demand  is 
a  continuous  demand  and  takes  it  out  of  the  Hue  of  Bpeculatoro.    It 


RECIPROCITY   STATEMENTS. 


243 


IS  the  great  lot  of  wlie;it  ji'oiiig'  to  these  larger  markets  which  stands  as 
a  menace  and  kei'ps  tiie  marUct  down  at  home. 

The  CJiAiiiMAN.  It  would  eciualize  the  sale  of  wheat  over  the  twelve 
months. 

Mr.  PiLLSBUBY.  Yes,  sir;  it  would  be  kept  back  in  the  country. 


and 


a  oom- 
nd  the 
)  other 
make 
I'etits  a 
land  is 
rs.    It 


PEOPLE   ENGAGED   IN   THE   MILLING   INDUSTRY. 

The  Chairman.  Could  you  give  in  round  numbers  the  uuudjer  of 
em])loyee8  who  are  engiiged  in  the  milling  interests? 

Mr.  PiLLSBURY.  I  think  I  have  it  here — no,  I  have  not  that  at  hand. 
I  think  you  can  get  it  out  of  the  census — Mr.  Curtis  can  readily  get 
it  for  you — but  it  must  be  an  immense  number.  While  the  gross 
amount  is  alu  ad  of  any  other  industry,  1  do  iu)t  think  the  employees 
wouhl  show  ui)  as  large.  There  is  a  less  i)ercentage  of  labor  than  it 
would  be  in  some  other  industry,  but  the  gross  amount  shows  it  is  the 
largest  industry  in  tlie  United  States;  very  much. 

The  Chairman.  These  18,000  or  20,000  mills  you  spoke  of  iu  your 
statement  1  believe  are  scattered  over  the  country, 

Mr.  PiLL8in  RY.  They  are  scattered  everywhere,  but,  of  course,  iu 
all  iStates  that  do  not  raise  a  surplus  amount  of  wheat  the  mills  are 
small  and  used  for  what  you  call  ''gristmills."  What  we  call  merchant 
mills  are  in  those  States  which  raise  a  surplus  of  wheat. 

The  Chairman.  In  giving  your  direct  statement  you  spoke  about  a 
practical  prohibition  in  Mexico.     How  long  has  that  existed? 

Mr.  l*iLLsivrRY.  It  has  almost  always  existed  in  Mexico.  There  has 
been  very  little  American  Hour  going  into  Mexico. 

The  Chairman.  Yet  we  are  large  consumers  of  Mexican  produce! 

Mr.  PiLLSBURY.  Yes,  sir. 

The  Chairman.  That  is  a  country  really  where  reciprocity  could  be 
very  successfully  put  iu  operation? 

FLOUR  ALAVAYH   POLLOWS  CIVILIZATION. 

Mr.  PiLLSBURY.  Yes,  sir;  but  there  is  one  peculiar  thing  about  the 
production  of  wheat  Hour.  You  know  that  follows  civilization.  Y'ou 
let  the  missionary  go  into  a  territory  and  the  wheat  flour  follows  him 
as  ])eople  get  less  barbarous  and  more  civili/ed,  and  y  m  find,  taking  it 
among  the  colored  people  in  the  South,  that  when  tln-y  begin  to  get 
better  off  they  begiu  to  eat  wheat  Hour.  Another  thing  in  regard  to  the 
introduction  of  wheat  Hour  is  where  it  is  once  introduced  it  always 
grows. 

The  Chairman.  It  never  goes  back? 

Mr.  Pii,L«BURY.  It  never  goes  back,  l)ut  increases  everywhere.  That 
is  precisely  so,  and  millers  figure  we  can  spend  a  good  deal  iu  intro- 
ducing Hour  because  if  we  once  get  it  introduced  the  trade  always  sticks 
to  it. 

The  Chairman.  To  what  countries  do  you  mostly  export  your  tlourt 

l^Ir.  PiLLSBURY.  The  spiing-wheat  mills,  to  which  our  mills  t)elong, 
exjiort  their  Hour  to  tlu^  (!ountri<»s  of  northern  Europe,  mostly  England 
and  Holland.  Our  own  particular  brands  are  as  well  known  in  Eng- 
land and  Holland  as  they  are  in  this  country,  and  we  export  over 
1,000,000  barrels  of  Hour. 

Mr.  McLaurin.  At  what  place  arr  your  mills  located? 

Mr.  PiLLSBURY.  At  Minneapolis,  Minn. 

The  Cfiairman.  The  country  which  is  contribut/ory  to  Minneapolis  is 
the  best  wheat  growing  country  iu  the  world! 


Ill 


« m 


244 


RECIPROCITY    STATEMENTS. 


Hili 


Mr.  PiLLsnuRY.  Yes,  sir;  Miimesota  and  the  two  Dakotas. 
Here  is  a  letter  written  to  Mr.  Fletcher  which  he  desired  nio  to  pre- 
sent to  you: 

D18CKIM1NATION   IN  ENGLAND. 

Minneapolis,  Minn.,  March  14,  1S96. 

Dkau  Sik:  The  millers  of  the  United  States  have  been  Kroatly  diHturhed  of  late, 
(>\vin<>;  ^o  roitort  reachinj^  them  thai,  the  dock  <oMii)iuiies  of  Lo'idon  are  conteiiiplat- 
inj;  an  advauc(!d  cluirj^e  for  all  American  liour  landed  on  the  (jnay.s  of  London.  The 
system  hitherto  has  l)een  as  follows:  A  ship  conies  np  to  the  wharf  to  discharge  her 
c.'irgo.  All  llonr  that  is  destined  for  JiOndon  proper  is  landed  on  the  cinay,  is  allowed 
to  remain  there  seventy-two  honrs,  and  a  charge  of  Is.  (kl.  is  made  per  long  ton  of 
2,210  ])onnds.  Any  Hour  that  a  London  imjtortor  n.ay  wish  to  distribute  to  the 
smaller  ports  along  the  coast  he  can  discharge  into  a  smiill  vessel  or  lighter  during 
this  ])eriod  )f  seventy-two  honrs,  and  thus  avoitl  the  charge  of  Is.  6d.  which  v.'onld 
be  demanded  if  the  cargo  was  discharged  ou  the  quay  and  then  from  the  <iuay  to  the 
lighter  or  small  vessel. 

The  do(!k  companies,  in  league  with  the  steamship  companies,  now  propose  to  make 
the  charge  for  landing  flour  on  the  (|U.ay.  28.  per  long  ton;  and  in  addition  to  tiiis, 
propose  to  reduce  the  time  from  seventy-two  hours  to  twenty-four  hours.  This  is  a 
greater  change  than  would  at  first  appear,  for  in  times  of  active  business  our  London 
correspondents  inform  us  that  it  is  ii.;possible  to  get  papers  jjut  through  the  neces- 
sary form  within  the  twenty-four  hours,  leaving  no  time  whatever  for  the  loadi  g  of 
theshi))  into  the  lighters  or  small  vessels,  so  that  all  iior.r  will  necessarily  hi  sub- 
ject to  the  charge  made  for  landing  on  the  tjuay.  They  further  inform  us  that  wheat 
will  be  jxempt  from  this  charge. 

Vtiu  can  see  plainly  that  this  is  a  thrust  at  Anu'rican  mlllors  and  a  direct  disc  rim- 
ination  in  favor  of  wheat,  which  of  course  will  be  a  great  advantage  to  the  English 
millers;  and  in  reality  this  excessive  dock  charge  which  is  proposed  will  act  as  a 
tax  on  American  flour. 

It  is  also  pointed  out  to  us  that  American  flour  is  further  discriminated  against, 
owing  to  the  fact  that  all  French  flour  (the  importation  of  which  has  greatly  increased 
during  the  past  year)  connng  into  London  by  means  of  smaller  craft  frou;  France  is 
delivered  at  the  smaller  docks  along  the  Thames  and  enters  London  free  of  all  dock 
charge.  You  can  see,  therefore,  tl'.nt  there  is  again  a  discrimination  against  Ameri- 
can Hour:  First,  in  favor  of  American  wheat,  and  second,  in  favor  of  French  and 
other  flours. 

\Ae  iiardlv  need  point  out  to  you  that  the  American  miller  is  already  hard  driven, 
and  thiit  America  at  present  can  not  take  care  of  lier  entire  output  and  must  look  to 
the  foreign  trade  to  take  a  large  portion  of  her  manufacture.  When  you  consider 
that  we  are  already  cut  out  from  Cuba  and  other  nuirkets,  and  when  you  consider 
that  the  French  miller,  by  reason  of  a  bounty  guaranteed  to  him  by  the  (iovernment, 
is  becoming  a  strong  competitor,  and  when  you  consider  this  additiomil  burden  that 
will  be  put  on  American  flour  if  the  dock  companies  succeed  in  putting  through  this 
measure,  you  can  rea«lily  understand  the  importame  of  taking  some  action  to  \>v^^• 
vent  such  a  course  heing  carried  through.  The  English  Parliament  is  strongly 
opi)osed  to  discriminations  of  this  character,  and  such  additional  dock  cliarges  are  in 
reality  illegal.  Howtfver,  the  dock  companies  propose  to  carry  through  their  meas- 
ure safely  by  forcing  the  steamship  companies  to  insert  in  their  bills  of  lading  a 
clause  to  this  etVect,  and  in  this  way  they  escane  all  danger  of  doing  anything  illegal. 
For,  if  the  clause  is  inserted  in  the  bill  of  lading  and  the  miller  is  forced  to  accept 
such  bill  of  lading,  the  dock  companies  are  -elieved  of  the  danger  of  an  illegal 
measure. 

Will  you  kindly  give  this  nnitter  your  attention,  as  we  believe  it  is  of  importance 
to  one  of  the  greatest  industries  of  America. 

Y'ours,  truly,  WASunuHN-CROSBY  Co. 

Hon.  LOItKN   FLKTt'HKH, 

House  of  llepreHentatii'ea,  Washington,  D.  C. 

Messrs.  Washburn-Crosby  telegraph  nie  they  will  come  down  them- 
selves and  appear  before  your  comuuttee.  1  will  state  the  English 
courts  sustain  these  bills  of  ladinjj 

The  CiiAiiiMAN.  On  the  principle  that  a  man  who  makes  a  contract 
can  not  complain. 

Mr.  FiLLSnuif  Y.  lint  wo  are  forced  to  si^jii  thetie  bills  of  lading. 

The  CuAiKMAN.  But  that  is  not  the  practice  in  the  American  courts? 

Mr.  PiLLSBUBY.  No;  the  principle  of  the  American  courts  is  the 


RECIPROCITY   STATEMENTS. 


245 


e  to  pre- 


14,  1896. 

ed  of  late, 
)nteiiii)lat- 
(lon.  The 
L'liiirge  her 
is  allowed 
oiig  toil  of 
utc  to  tlie 
ter  (luring 
licli  would 
uay  to  the 

ise  to  make 
3U  to  this, 
This  is  a 
ur  Loudon 
the  ni'ccs- 
loadi'  '^  of 
ily  bi  sub- 
tliat  wheat 

't  divS(  riui- 
lio  English 
ill  act  as  a 

)d  against, 
y  increased 
r.  France  is 
of  all  dock 
ust  Anieri- 
ronch  aud 

ird  driven, 

list  look  to 

u  consider 

11  consider 

vernincut, 

irden  that 

Iroiigli  this 

[on  to  i)r(!- 

strongly 

es  are  iu 

leir  nieas- 

f  lading  a 

ig  illegal. 

to  acce])t 

in  illegal 

kiportaiice 

Uy  Co. 


In  tliem- 
]Eiigli»b 

poutract 

1  courts? 
is  the 


J 


railroad  companies  can  not  relieve  themselves  of  their  common  law  lia- 
bility. 

The  Chaiuman.  If  you  ship  at  all  you  have  to  ship * 

]\Ir.  PiLi.snuRY.  On  the  ordinary  bills  of  lading  in  printed  form, 
which  t\\vty  agree  upon.  I  do  not  think  any  statement  is  necessary,  as 
the  letter  is  sutlu-iently  plain. 

The  CiiAiiniAN.  Wliat  legislation  would  you  recommend? 

i\Ir.  PiLLsnuRY.  I  can  not  think  of  that  right  on  the  spot. 

The  CuAiiiMAN.  We  are  very  much  obliged  to  you,  iVIr.  IMllsbury. 

Mr.  PiLLsnuiiv.  1  am  very  nuich  obliged  to  you,  Mr.  Chairnum  aud 
gentlemen,  for  the  courtesy  you  have  shown  me. 

Mr.  Pillsbury  also  iiled  the  following  statistics: 

What  we  bought  from  iOuha  in  1893  under  reciprocity. 
■  [Value  in  gold  ilollarH.] 

Tobacco $o.ono,ono 

Cigars  and  cigarettes 2,  750.  000 

Hanauas 1,  (inO,  000 

Cocoanuts 150, 0(K) 

Other  tropical  fruits r,r>U,  000 

Molasses 1,000,0(X) 

Sugar 60,  607, 000 

Cedar,  niahogiinv,  and  other  woods 1,  000,000 

Iron  ore  (411,000  tons) 612,  OOO 

Total 77,349,000 

What  we  sold  to  Cuba  in  JSO.l  undei'  reciprocity, 
[Value  in  gold  dollars.] 

Agricnltural  implements $1.30,000 

Manufactures  f>f  brnss 44,  (X)0 

I'.read 32,000 

Corn 5S2,000 

Wlie.it  (lour 2,  821,  000 

Carriiiges 316,  0(X) 

Kail  way  cars 271.  (K)0 

Chemicals,  drugs,  medicines,  etc 2S0. 000 

Coal ! !)31.()00 

Co])])er 48,000 

Cotton  goods 147,000 

Cordage  and  twine 76.  (KX) 

( ilasii  aud  glassware 118, 000 

Hay 54,  (MK) 

India  rubber 42,000 

Ink 10.000 

Telcgr.i])h  and  telcplione  instminents 11.5,  (KK) 

Castings  and  hardware 5<M).  000 

Machinery 2,  702, 000 

Nails 128,000 

Steel  rails , 327,  (XK) 

Sa V.S  and  tools 24 1,  tX)0 

Scales  and  balances 63.000 

Sowing  machines 06,000 

Locomotives 4  lit,  000 

Stationary  engines 130,000 

Boilers .322,000 

IVui-ing  wire 321,  0(X) 

Miscellaneous  niannfacf  ures  of  iron  and  steel 1,31 1, 0(X) 

Lanijis  and  chandel  iers 51 ,  000 

Hoots  and  shoes 11.5.  0(K) 

Harness  ami  Na<ldlery 23,  (KX) 

Leather  and  mauufaitures  of  leather 4L(KH) 

I  ,ime  ii nd  cement 72,  (XX) 

Malt  li(|uors 4(i,  (KX) 

Mauufuctures  of  marble  and  stouo..'. .'.'. 77,000 


246 


RECIPROCITY   STATEMP:NTS. 


I   II 


H  I 


Naval  stores $50,000 

Illuminating  and  Inbric.ating  oils 5IG,  000 

Paints  and  painters'  colors 49,  000 

Paper ". 160.000 

Perfumery 26,000 

Plated  ware 20,000 

Beef  i)roducts 89, 000 

IJac(m 557,000 

llam 761.000 

Pork 59.000 

J.ard 4,024,000 

Other  meat  produ.t,^    81, 000 

Untter 19,  000 

Cheese 32, 000 

Milk 46,000 

Soap 8,000 

Stationery 31.  000 

Manufactures  of  str.aw 16, 000 

Candy  and  confectionery 36,  000 

Manufactures  of  tin 25,  000 

Manufactures  of  tobacco 61,  000 

Trunks  and  bags 18,000 

Varnish 18.000 

Beans  and  pease 393,  000 

Potatoes 554, 000 

Other  vegetables 31, 000 

Lumber 1, 192,  000 

Coojjcrage  materials 319.  000 

Houseliold  furniture 217',  000 

Total 23,601,094 

Foreign  merchandise  imported  by  our  merchants  and  resold  to  Cuba. ..  553,  604 

Total  export  of  merchandise 21, 157,698 

Exports  of  domestic  merchandise  to  Cuha  during  the  year  cndin;/  June  30,  1894, 

Agricultural  implements : 

Mowers  and  rea]>ers,  and  parts  of $8. 309 

Plows  and  cultivators,  and  parts  of 81.  988 

All  other,  and  parts  of 27, 972 

Aluminum,  manufactures  of , 10 

Animals: 

(battle 175 

Hogs 73 

Horses 16,  230 

Mules 25,090 

Sheep 078 

All  other,  and  fowls 862 

Artwork:  Paintings  and  statnaiy 4,028 

Hark,  and  extract  of,  for  tanning 280 

Beeswax 361 

Blacking 5,558 

Bones,  hoofs,  horns,  etc 27 

Books,  engravings,  etchings,  etc 39, 626 

Brass,  ami  numufactures  of 42, 125 

Breadstutl's: 

Barley 584 

Bread  and  biscuit 34, 596 

Corn 571,326 

Corn  meal 6,  293 

Oats 29,P56 

Oatmeal 3 

Kve 137 

h'V(!llour 56 

Wheat  Hour 2,473,805 

All  other,  etc 47,  885 

Building 2,528 

Fii<' , 61,  186 

Broom  corn 1 23,838 


RECIPROCITY    STATEMENTS. 


247 


$r>o,  000 

51  ti,  000 

49,  000 

160.  000 

26, 000 

20, 000 

8ft,  000 

557,  000 

761,000 

59, 000 

4, 021,  000 

81,000 

49, 000 

32,000 

46,  000 

8,000 

31.000 

16,  000 

36,  000 

25,  000 

61,000 

18,  000 

18,000 

39;i  000 

554, 000 

31,000 

1, 192,  000 

319!  000 

217;  000 

23,  604,  094 
553, 604 

21, 157, 698 

1894. 


$8, 309 

81.  988 

27,  972 

10 

175 

73 

16,  230 

25,  090 

078 

862 

4, 028 

280 

3(il 

5, 558 

27 

39, 626 

42, 125 

584 

34,596 

571,326 

6,  293 

29,  P56 

3 

137 

56 

,  473,  805 

47, 885 

2,528 
61,  186 
23,838 


'I 


;>. 


914 
365 
175 
563 
441 

326 
997 
432 
861 
020 
23 

427 

043 


85, 

830, 

2, 

3, 

2, 
33, 


6, 
50, 

58, 
9, 

4, 


BrooniH  and  brushes $10, 

Candles 

Carriajj;c8  and  horse  cars,  etc 261, 

Cars,  passenger  and  freight 197, 

Charcoal 

Chenilcils,  drugs,  dyes,  etc : 

Acids 35, 

Dyes  and  dyestii Us 

M(!dicinos,  ])!iteiit  and  jtroprietiiry 67, 

Roots,  lierbs,  etc 

Al  1  other 187, 

Cider 

Cloclcs  and  watclics: 

Clocks  and  ])arts  of 16, 

W  atches  and  parts  of 1, 

Caal  and  coke : 
Coal— 

Anthracite , 

Bituminous 

Coke 

Coffee  and  cocoa 

Copper,  and  manuCactnrcs  of: 

I  ngots,  bars  and  old 

All  other  nianufaiturcs  of 

Cotton,  and  manufactures  of:  Unmanufactured,  other 

Manufactures  of — 

Cloth,  colored 

Cloth,  nni'olorod 

Wearing  apparel 

All  other 

Dental  goods 

Earthen,  stone,  and  ehinii  ware: 

Earthen  and  stone  ware 

Chinawiire 

Eggs 

Enun'v  goods : 

Cloth 

l'ai)er 

Wheels 

Feathers,  crude 

Fertilizers 

Fish: 

I'-rcsh,  other  than  salmon 

Dried,  suioked,  or  cured — 

Cojlfish,  including  haddock,  hake,  and  polloidc 

Herring 

Other 

Pickled- 
Mackerel  

Herring  

Other 

Salmon — 

Canned  

Other 

Canned  lish 

Shell  fish- 

Oysters 

Other 

All  other 

Flax,  hemp,  and  jnte,  manufactures  of: 

l»"«s 

Cordage 

Twine 

All  other 

Fruits,  including  nuts: 

Ai)pleH,  green  01  ripe 25,819 

Fruits,  preserved — 

Cainied 46, 

nthor 12, 

All  other,  green,  etc 20, 

Nut8 1, 


116 

684 
287 
325 

555 
066 
247 

812 
610 
087 
674 
794 

442 

49 

304 

135 

116 

149 

50 

299 


5,016 


1, 


61, 
10, 
21, 

1, 


42, 
13, 


102 
347 

387 

250 

32 

487 

418 
371 

795 

248 

399 
120 

133 
304 
934 
950 


260 
866 
719 
311 


248 


RECIPllOCITy    STATEMENTS. 


i 


GlasB  and  {rlasHware: 

Window  KhiHS $4,076 

Another 82,931 

Glno 7,253 

Groaso,  j^reaso  Hcr:i])s,  and  nil  .so.'ip  stock 31,  849 

Gun])o\vd(!r  and  other  oxjdosivcH: 

Gnnpowdor 2, 1?18 

Another 4,54(1 

Hair,  and  niannfactnres  of 512 

Hay 87,700 

Hides,  skins,  othor  thau  In  is 711 

Ho))s      855 

India  inhlier: 

hoots  and  shoos 2,329 

Another 52,477 

Ink,  ])rinter's  and  other 10,  308 

Instruments  and  apparatus  for  scientilic  i)urposes,  including  telcgrajth, 

telephone,  and  electric 143, 501 

Iron  and  steel,  and  manufactures  of: 

I'ifiiron 3,910 

Band,  hoop,  and  scroll  iron 4,  504 

Ihir  i  ron 80,  015 

Car  wheels 12,309 

Castinjis,  not  elsewhere  specilied 40,724 

Cutlerv 23,037 

Firearms 3,080 

Ingots,  bars,  and  rods  of  steel 116 

Locks,  hinges,  and  other  builders'  hardware 246, 142 

Machinery,  not  elsewhere  specified 1,587,  706 

Nails  and  sj)ikes — 

Cut 105,160 

Wire,  •■\rought,  horseshoe,  and  all  other,  including  tacks 24,210 

Plates  and  sheet — 

Of  iron 86,719 

or  steel 12,523 

Printing  presses,  and  parts  of 12, 120 

Kailroad  bars  and  rails — 

Of  iron 345 

Of  steel 340,112 

Saws  and  tools 192,578 

Scales  and  balances 5;i,  174 

Sewing  machines,  and  psirtsof 212,696 

Steam  engines,  and  jjarts  of— 

Locomotive  engines  . 222, 109 

Boilers  and  parts  of  engin(!S ,      221,863 

Stationary  engines 62,830 

Stoves  and  ranges 9, 167 

Wire 248,027 

All  other  manufactures  of  iron 885, 151 

Jewelry  and  manufactures  of  gold  and  silver 11,371 

Lamps,  chandeliers,  and  all  devices  and  a])plianeeB  for  illuminating 

])uri)08es 40,  725 

Lead,  manufactures  of 9,  767 

Leather,  and  manufactures  of — 

Bull,  grain 2,077 

Patent  or  enameled 4, 162 

Solo 241 

Another 1,513 

Manufactures — 

Boots  and  shoes 82,554 

Harness  and  saddles, 29, 574 

Another 24,346 

Lime  and  cement 68,  259 

Malt 20 

Malt  liipiors: 

lu  bottles 40,112 

Not  in  bottles 16,236 

Marble  and  stone,  and  manufactures  of: 

Uumuuufactured 21,434 


RECIPROCITY    STATEMENTS. 


249 


$4,  076 

82, 931 

7, 253 

ai,  849 

2,318 

4, 546 

512 

87,  700 

711 

855 

2,  329 

52, 477 

10,  308 

143, 501 

3,910 

4,504 

86, 015 

12,  309 

40, 724 

23,  037 

3,080 

116 

246, 142 

1,  587,  706 

105, 160 

24,  210 

86,  719 

12,  523 

12, 120 

345 

340, 112 

192,  578 

5:5, 174 

212, 696 

222, 109 

221,  863 

62, 830 

9, 167 

248, 027 

885, 151 

11,  371 

40,  725 

9,  767 

2,077 

4,162 

241 

1,513 

82,  554 

29,  574 

24,  346 

68,  259 

20 

40, 112 

16, 236 

21, 434 


Marldc  and  Btone,  and  mannfactiires  of — Continued. 
Miiniifactnres  of — 

Kooliiiff  slate $2,643 

All  other 79,098 

Mons  and  seaweed 555 

Musical  instruments: 

Organs 1,602 

Pianofortes 1, 420 

All  other  and  parts  of 960 

Naval  stores : 

Rosin 18,831 

Tar 4,293 

Turpentine  and  ])iteh 796 

Turpentine  and  spirits  of 36, 125 

Niclicl,  nianufactun^s  of 30 

Notions,  not  elsewhere  specilied 8,532 

Oils: 

Animal — 

Lard 1,107 

Whale 121 

Fish 1, 565 

Other 4,974 

Mineral,  includinn:  all  natural  oils,  etc 413, 140 

Mineral,  relined  or  manufactured — 

Naphthas,  including  all  lighter  products 439 

Illuminating 16,903 

Lubricating  and  heavy  paraffin  oil 94,  535 

Vegetable — 

Cotton  seed 18,832 

Linseed 1,737 

Other 2,335 

All  other 451 

Paints  and  painters'  colors 54,  830 

Painr  and  manufactures: 

Pai)er  hangings 230 

Another 140,051 

Writing  paper  and  envelopes 12, 596 

Paraffin  and  paraffin  v  »x 692 

Perfumery  and  cosmetics 22,  228 

Plants,  trees,  and  shrubs 1,  717 

Plated  ware 14,352 

Provisions,  comprising  meat  and  dairy  products: 
Moat  products — 
Beef  products — 

Canned 10,139 

Fresh 3,742 

Salted  or  pickled 4,  527 

Other  cured 421 

Tallow 56,700 

Hog  products — 

Bacon 532,  035 

Hams 068,959 

Pork,  pickled 52, 333 

Lard 3, 625, 545 

Oleomargarine,  imitation  l)utter 538 

Poultry  and  game , 450 

All  cUier  meat  ^iroducts 85,221 

Dairy  products — 

Butter 27,038 

Cheese 30,835 

Milk 41,732 

Quicksilver 73 

Rice 2, 04  5 

Sand 90 

Seeds,  all  other 4,196 

Silk,  manufactures  of 440 

Soap: 

Toilet  or  fancy 9,787 

Other 2,049 


250 


RECIPROCITY    STATEMENTS. 


Spirits,  (listilloil: 

Alcohol,  inclndinf;'  pure,  neutral  or  cologne  Hpirits $78 

Brandy 04 

WbiHky— 

lioiirbon 102 

Kve 808 

All  other 210 

Starch 4,  673 

Stationery,  except  j)aper 21, 909 

Stereotype  and  electrotype  plates 542 

Straw  and  jialni  leaf 10,  558 

Sugar  and  nu)lasseH: 

Molasses  and  sirii]) 22 

Candy  and  conlectiouery 28,  705 

Tin,  niannfactnres  of 2(5,  003 

To])aceo  an<l  nianufaetures,  all  other 38,  233 

ToyH 2,876 

TrunkH,  vuliseH,  and  traveling  bags 25,  062 

Varnish lit,  729 

Vegetables: 

Moans  and  i)caso 268,  265 

Onions 1.  118 

Potatoes 496,  875 

Vegetables  canned 10,  500 

All  other 20,376 

Vessels  sidd  to  foreigner's: 

Steamers 2, 508 

Sailing  vessels 24,  000 

Vinegar 12 

M' halebone 94 

Wine: 

In  bottles 123 

Not  in  bottles 741 

Wood,  and  nianuiaetiires  of: 
Lumber — 

Boards,  deals,  and  planks '. 892,690 

Joists  and  scantling 25,  231 

Hoops  and  hoop  poles 21, 839 

Laths 18 

Shingles 372 

Shooks — 

Box 12,067 

Other 89,418 

Staves  and  headings 40,  674 

All  other  lumber 35,905 

Timber — 

Sawed 54,137 

Hewn 72 

Logs  and  other  timber 8,083 

Manufactures  of — 

Doors,  sash,  and  blinds 4,065 

Moldings,  trinniiings,  etc 6, 131 

Hogsheads  and  barrels,  empty "  79,  486 

Household  furnitiiro 108,  104 

Wooden  ware 13, 160 

Another 107,843 

Wool,  and  manufactures  of — 

Carpets 396 

Flannels  and  blankets 189 

Wearing  a])parel 1, 918 

All  other  manufactures  of 1, 187 

Zinc,  and  uianufat^tures  of — 

Pigs,  bars,  plates,  etc 648 

All  other  manufactures  of 1, 696 

Total 19,855,237 

The  population  of  M-.aIuo  is  two  and  one-half  times  that  of  Canada,  and  the  value 
of  the  commerce  with  Mexico  should  be  largely  in  excess  of  that  with  our  northern 
neighbor.    American  manulacturora  ar«  gradually  obtuiniug  a  dominant  position  in 


RECIPROCITY    STATEMENTS. 


251 


C»nada,  and  hare  been  able,  by  sending  out  their  travelort  and  by  Trorlciup;  for 
triule,  largely  to  supplant  Eu^laiid  in  tliose  marketa.  The  same  proccHs  applied  to 
the  southern  countries  will  accomplish  the  same  resiiUH. 

Vf'Mico  prodiiceH  an  infinite  rariety  of  articles  that  we  need.  It  is  therefore 
likely  that  our  imports  from  that  country  may  always  exceed  our  exports  to  it. 
Powerful  as  is  the  position  of  the  United  States  in  Mexican  coiimicrce,  the  relation 
could  be  very  much  strengthened  and  the  mutual  profits  become  much  greater  were 
it  possible  to  carry  through  a  reciprocity  treaty.  Mexico  at  one  time  pro])()sed  such 
a  treaty  on  lines  that  were  snflfiriently  liberal.  Pier  offer  wan  not  accei)te(l  by  tiio 
United  States  with  promptncHS  and  was  finally  withdrawn.  11'  reciprc  ;ity  treaties 
could  be  arranged  with  Canada  on  the  north  and  Mexiio  on  the  south,  tb(^  entire 
North  American  contuieut  would  become  a  market  for  American  manufacturers. 


STATEMENT  OF  ME.  JOHN  CROSBY,  REPRESENTIKG  THE  WASH- 
BUEN-CROSBY  COMPANY,  OF  MINNEAPOLIS,  MINN. 

Mr.  Oeosbt.  We  have  come  here  simply  to  speak  of  the  (lisciimina- 
tion  which  we  meet  with  in  the  port  of  Loudon,  and  on  no  otlier  point. 

Mr.  McLauhin.  Oil  what  kind  of  goods! 

Mr.  Crosby.  On  spring  wheat  flour. 

The  American  flour  miller  sells  his  flour  for  London  on  sixty  days' 
draft  c.  i.  f.  The  shipper  or  rather  the  consignee  in  London  takes  the 
c.  i.  f.  figures,  and  from  that  he  deducts  whatever  local  charges  he  must 
pay.  Ther«^fore  of  coarse  any  local  charges  which  appear  there  come 
directly  out  of  the  pocket  of  the  Minneapolis,  St.  Louis,  or  Dulutli 
miller.  Ths  port  of  London  is  the  only  port,  as  for  as  we  can  see,  of 
the  United  Kingdom  that  is  a  free  port  under  the  act  of  Parliament. 
When  the  big  docks  were  established  by  act  of  Parliament  along  in 
1828  or  the  ea.^"ly  part  of  the  century,  it  was  expressly  provided  that 
any  lighter  or  craft  coming  into  the  docks  to  take  goods  or  ballast  out 
of  ships  or  deliver  them  there  should  be  free  from  any  charge  whatso- 
ever.   That  is  one  case. 

Now  another  point.  Where  it  is  provided  that  the  port  of  Loudon  is 
a  free  port  in  tLe  merchants'  shipping  act,  which  was  somewhat  later 
than  that  which  provided  that  any  goods  delivered  on  the  ([uays  of 
the  London  docks  for  the  convenience  of  the  shipowner  in  loading  or 
unloading  or  assorting  of  goods,  and  any  expenses  incurred  in  that 
shall  be  borne  by  the  slii])owner  and  that  all  these  goods  shall  be  free 
with  the  consignee.  Now  the  discrimination  which  we  meet  directly  is 
this:  To  these  docks  the  ships  come  carrying  our  flour,  and  I  will  siiy 
at  this  point  that  probably  of  the  spring  wheat  flour  there  conu?s  over 
a  million  barrels  to  the  port  of  London  each  year.  JiOndon  is  the  great 
dumping  ground  for  the  flour  of  both  spring  wheat  and  winter  wheat  of 
this  country.    It  is  a  necessa.y  opening  for  us. 

Mr.  Tawney.  And  the  distributing  point  for  Europe. 

Mr.  Oeosby.  Yes,  sir;  more  ])articularly  the  inland  points  of  the 
United  Kingdom.  We  deliver  flour  there  probably  tliroughout  the  yetir 
at  less  than  cost.  We  do  it  simply  to  keep  our  decks  cletir  and  to  keep 
the  product  going. 

The  ships  with  our  product  go  to  these  docks.  Our  produ<;t — our 
flour — goes  in  these  transatlantic  liners  and  the  only  plac(^s  on  the 
Thames  that  they  can  laud  is  at  these  docks,  but  the  French  ships  ('(mie 
across  the  channel  bearing  light  draft  and  can  come  up  the  Thames  and 
land  at  little  warehouses  farther  up,  o^  at  the  mill,  or  at  the  «inay,  with- 
out lightering,  so  that  they  escape  these  dock  charges.  Thou  tigain  the 
English  ships  come  from  Liverpool  where  they  grind  up  the  wheat  into 


4M  •»  ^1 


252 


RECIPROCITY    STATEMENTS. 


flonr,  or  CjumIKV  or  TTartlopool,  and  they  can  OHcape  tlicso  dock  (•liiirfi;e8 
tlicro.  Now  to  show  you  what  the  duirgos  arc  at  these  L<)ii(h)ii  docks, 
ill  every  ocean  bill  of  lading  which  is  issued  for  Hour  theie  ai)i)ear8 
what  is  called  the  London  clause,  which  partitMdarly  provides  that 
thei'c  shall  b(i  acliar<;'e  of  Is.  Od.  per  ton  Tor  a  dock  and  landing-  char<>e 
on  these  London  do(dvS,  and  there  is  where  we  meet  the  discriniinalion, 
and  that  is  the  point  where  the  hhi^iish  Hours,  that  is  the  flours  man- 
ufactured on  the  Tiianies  by  the  millers  there,  or  the  (lours  nianufac!- 
tured  at  Tiiverpool  or  Cardiff  and  brouf^ht  in  these  Utile  ships,  or 
Fiencli  Hours  connng-  across  the  channel,  whi(^h  l-'rencli  tlour,  by  the 
way,  is  a  bounty-fed  Hour,  they  <i,et  the  rebate  on  the  Avheat  and  jj^rind 
it  so  it  gets  a  double  chance  at  us  and  we  have  to  meet  that. 

DISCRIMINATION  IN  FAVOR  OF  FRKNCII  MILLERS. 

The  Chatiiman.  If  I  understand  you  correctly  the  French  exporter 
does  not  land  at  the  same  dock  the  American  exporter  does? 

]\lr.  Ckoshv.  lie  does  not. 

The  Chairman.  If  he  landed  at  the  same  dock  w(mld  he  be  subject 
to  the  same  charfjes? 

Mr.  CiiOSiJY.  lie  would. 

The  Chairman.  The  jmint  of  the  complaint  you  make  is  that  the 
ocean  going  steamers  which  carry  your  product  to  the  lOnglish  market 
are  so  large  that  they  can  not  land  at  places  which  smaller  crafts  from 
France 

Mr.  (luosBY.  Or  lo<al  English  ports;  that  is  exactly  it. 

The  Chairman.  That  is  the  point? 

Mr.  Crosby.  Yes,  sir.  And  we  make  the  point  there  that  not  only 
is  a  discrimination  made  against  American  flour  at  that  poird  bnt  the 
charge  of  Is.  Od.  in  that  London  clause  is  directly  contrary  to  the  act  of 
Parliament. 

The  Chairman.  It  is  in  violation  of  the  English  law? 

Mr.  Croshy.  It  is  in  violation  of  the  English  law. 

The  Chairman.  Why  do  you  submit  to  it  then? 

l\Ir.  Croshy.  Because  v  are  given  at  Minneapolis  an  export  through 
bill  of  lading. 

The  Chairman.  I  get  your  point;  and  in  the  bill  of  lading  they  exact 
of  you  to  pay  that  charge,  do  they? 

Mr.  Ckosry.  They  do  in  the  result,  but  not  at  first.  That  bill  ot 
lading  simply  says — clause  17  says:  "This  shipment  is  subject  to  what- 
ever conditions  ami  specifications  there  nmy  be  in  the  ocean  bill  of  lading 
of  this  date."     Wo  do  uot  know  anything  about  it. 

The  Chairman.  Where  does  that  come  in,  the  ocean  bill  of  lading 
you  speak  of? 

Mr.  Crosby.  Then  the  ocean  bill  of  lading  that  is  in  vogue  by  the 
steamship  companies  is  one  which  is  adopted  jointly  by  the  steamship 
companies  and  the 

The  Chairman.  And  the  railroad  companies? 

Mr.  Crosby.  And  the  railroad  companies  at  New  York.  They  get 
together.  We  were  in  New  York  Saturday  and  saw  them  back  and 
forth,  but  it  was  the  old  question  of  going  from  i)illar  to  post  and  from 
post  back  to  pillar,  and  somewhere  between  them  it  is  made  up. 

The  Chairman.  Do  I  understand  two  bills  are  issued  on  your  flour 
shipped  from  Minneapolis  at  the  docks  of  London? 

Mr.  Crosby.  No,  sir;  only  one  bill  of  lading,  but  clause  17  of  our  bill 
says  that  these  shipments  are  subject  to  all  the  conditions  and  specifi- 
cations there  may  be  in  the  ocean  bill  at  this  date. 


I 

'II 


BECIPROCITY    STATEMENTS. 


253 


The  Chairman.  Thou  it  takes  not  only  what  in  in  the  bill  of  huling, 
but  ])ioliibits  anything  else? 
Mr.  CiiosiiY.  It  takes  in  this,  that  we  sign  a  blank  check. 

CONTRARY   TO  THE  LAWS  OF  ENGLAND. 

Mr.  DoLLiVER.  You  say  this  charge  is  contrary  to  the  laws  of  l:^ng- 
land? 

Mr.  CiioSHY.  Yes,  sir. 

Mr.  DoLLiVEU.  Then  why  do  these  ships  i)ay  it? 

The  CiiAiRiNiAN.  Tlie  Kn,i>lish  law  is  a  little  dilVerent  from  ours. 
Now,  you  take  a  bill  of  lading  issued  in  this  country,  where  we  have 
a  variety  of  exemptions,  and  our  courts  have  held  t'uit  those  are  not 
binding  upon  the  party  because  it  iy  a  one-sided  contract  and  they  can 
not  enforce  them.  Now,  in  England,  any  contiact  you  may  nnike,  how- 
ever unreasonable  it  may  be,  is  binding  and  J  understand  they  get  over 
that  on  that  decision. 

Mr.  Crosby.  That  is  what  our  consignees  say  over  tliere.  They  say 
the  English  courts  over  there  nnike  the  consignee  stand  simply  in  the 
shoes  of  the  consignor,  ami  if  that  consignor  has  chosen  to  contiact 
himself  out  of  his  rights  under  the  act  of  Parliament  the  consignee 
stands  where  he  does  and  you  do  not  get  anything  more. 

The  Chairman.  Who  induced  the  steamship  companies  to  issue  such 
a  bill  of  lading,  the  dock  owners? 

Mr.  CR0SCY^  That  is  Avhat  we  susi)ect.  The  dock  owners  in  London, 
if  this  clause  were  not  in  the  through  bill  of  lading,  could  not  collec^t 
it,  and  thcrefme  it  is  suggested  in  our  ICuglish  corres])ondence  that 
the  dock  company  and  steamship  comi)anies  have  joined  in  this. 

Mr.  MoLaurin.  How  do  you  expect  Congress  to  remedy  that? 

Mr.  Crosby.  Remedy  this  discrimination?  I  have  not  thought  of 
that. 

The  Chairman.  Could  this  be  d<me — could  Congress  ]»rovide  that 
the  steamship  company  could  not  issue  such  a  bill  of  lading? 

Mr.  CiiosBY.  That  is  the  verj-  thing  Ave  would  like.  That  is  exactly 
what  we  would  like;  or  if  they  issued  that  bill  of  lading  furnished  to 
the  inland  shipi)er,  so  the  man  who  sends  forward  a  big  amount  of 
tlour — and  it  is  not  flour  ah)ne — should  see  the  contract  he  is  signing. 

Mr.  MoLaurin.  And  not  be  forced  to  sign  a  contract  of  that  sort? 

Mr.  Crosby.  We  book  ahead,  and  you  may  say  there  are  two  parties 
to  it,  and  one  need  not  go  on  against  his  will,  but  when  you  follow  it  up 
the  local  agents  at  Kansas  City,  Minneapolis,  and  Chicago  say  they  do 
not  know  anything  about  the  London  clause.  They  say,  "  You  are  not 
subject  to  a  Loudon  clause,"  but  we  say,  "Our  agents  abroad  say  we 
are."  They  say  that  it  is  English  talk  and  that  it:  is  not  so;  that  they 
do  not  know.  Then  we  go  further  and  go  to  New  York,  and  then  they 
say,  "  You  are,  certainly,  because  you  contracted  this."  Then  we  follow 
that  up  and  ask  who  makes  up  the  through  bill  of  lading.  "Well,  a 
certain  committee  of  the  steamship  company."  And  we  follow  that  up, 
and  they  say,  "On  inland  matters  wc  consult  with  the  railroads."  And 
thus  we  go  backward  and  forward,  and  you  know  what  kind  of  a  stone 
wall  that  is  to  run  against. 

Mr.  Tawney.  Let  me  ask  you:  These  docks  in  Loudon  are  public 
docks  estabh shed  by  act  of  Parliament? 

Mr.  Crosby.  They  are  chartered  companies,  I  think  they  are  called 
there.  They  are  joint  stock  companies  owned  by  private  parties.  We 
found  that  their  stock  is  listed  on  the  exchanges  there,  though  the  con- 


■  ',■) 


254 


RECIPROCITY   STATEMENTS. 


ill 


in 


sigi<ee8  say  over  there  that  thon^'h  they  are  owned  as  a  private  coirceru 
they  arc  just  as  much  subject  to  the  provisions  of  the  Crown  as  a  public 
warehouse  or  laih-oad  of  this  cour.try. 

Mr.  Tawney.  In  what  way  are  they  affected  by  acts  of  Parliament 
..uM'h  require  them  to  be  free? 

Mr.  CiioSBY.  Directly  this:  They  could  not  collect  this  landing 
charge  of  Is  (id  per  ton  which  they  do  collect  to-day  unless  it  is  a 
specilication  put  in  the  bill  of  lading,  and  if  you  will  let  me  I  will  read 
over  that  Uere  is  a  draft  statement  the  London  people  drew  up  on 
that.    They  are  fighting  on  that  end. 

The  (JiiAiKMAN.  Just  turn  that  over  to  the  reporter  and  let  him 
embody  that. 

DRAFT  STATEMENT  ON  LONDON  CLAUSE. 

The  London  l-'lour  Tiiidc  AHHociation  lias  drawn  up  this  statement  in  order  tobring 
to  the  notice  of  exporting  flour  millers  of  the  United  States  the  dinal)ilities  under 
which  American  Hour  labors  in  thie  port  as  compared  with  flour  sent  into  London 
from  other  countries. 

When  the  docks  were  constructed,  it  was  clearly  stated  in  the  act  of  Tarliameiit 
that  the  dock  waters  shall  he  at  all  times  as  free  ns  the  Kiver  Thames,  the  clause  in 
the  act  reading  as  follows: 

"1;]H.  All  lighters  and  craft  entering  into  the  docks,  basins,  locks,  or  cuts  to  dis- 
charge or  receive  halJast  or  goods  to  or  from  on  hoard  ol'  any  ship  or  vessel  lying 
therein  shall  be  exempt  from  tlie  payment  »{  any  rates  so  lon<j  as  the  lighter  or 
craft  is  bona  iide  engaged  in  so  discharging  or  receiving  the  ballast  or  goods,  and 
also  all  the  ballast  or  goods  received  or  discharged  shall  ha  exempt  from  any  rate  or 
charge  whatever." 

Tlien,  again,  t!ie  merchant  shipping  act  states  on  this  subject: 

"I*'  any  goods  are,  for  the  purjiose  of  convenience  in  assorting  the  same,  lau<led  at 
the  wharf  where  the  siiip  is  discharged,  and  the  owner  of  the  goodo  at  the  time  of 
such  la'"ling  lias  made  entry  and  is  ready  and  otters  to  take  delivery  thereof  and  to 
convoy  the  same  to  some  wharf  or  warehouse,  such  goods  shall  be  assorted  at  land- 
ing and  si... li,  if  demanded,  be  delivered  to  the  ov/ner  thereof  within  twenty-four 
hours  after  assortment;  and  the  expense  of  and  consequent  on  such  lauding  and  as- 
sortment shall  be  borni-  by  the  shipowner." 

From  the  foregoing  clauses  it  will  be  noticed  that  the  consignees  are  [)rotected 
from  any  charges  being  imposed  upon  them,  lirst,  by  the  dock  charter,  in  that  the 
flo-ir  may  be  worked  from  tlie  ships  in  the  docks  and  be  exempt  liom  any  rate  or 
charge  whatevjr;  and  secondly,  the  merchant  shipping  act  jjrovides  that  should  tho 
Hour  be  landed  for  the  convenii^ice  of  sorting  that  the  expense  of  such  landing  and 
assortment  shall  be  borne  by  the  sliipowner. 

Hy  accepting  the  special  clause  entitled  the  "London  clause"  in  the  bill  of  lading, 
the  American  millers  contract  themselves  out  of  these  privileges,  and  when  this 
point  was  fought  in  our  law  courts  the  .judge  stated  that  if  the  American  shippers 
acco]>ted  such  a  clause  in  the  bill  of  lading  it  was  useless  to  come  to  the  courts  for 
protec  tion. 

Up  to  the  introduction  of  the  London  clause,  whenever  the  shipowners  landed 
their  oargo  on  the  (^uays  they  paid  the  Dock  Company  lOd.  per  ton  for  accommodation ; 
but  by  the  concerted  action  between  the  Dock  Comi)any  and  the  Atlantic  Liners 
they  devised  a  clause  to  be  inserted  in  the  bill  of  lading  by  which  they  contracted 
themselves  out  of  these  acts  of  I'arliament  and  so  placed  permanent  charges  on  the 
consignees.     The  original  London  clause  read: 

"  For  the  convenience  of  the  consignees,  we  have  arranged  to  laud  all  our  flour  on 
the  <|uays  at  the  exceedingly  low  rate  of  Is.  2d.  per  ton." 

This  rate  )\as  been  increased  to  Is.  6d,  per  ton,  and  now  they  purpose  to  still  fur- 
tiier  increase  it  to  2s.  per  ton. 

The  whole  ojieration  of  this  London  clause  is  a  violation  of  the  spirit  of  the  act  of 
I'arliament  safeguarding  the  consignee,  and  moreover  it  was  framed  in  such  a  way 
as  to  lend  exporting  mill  rs  to  sui)poso  that  it  was  for  tho  convenience  of  the  con- 
signees, whereas  the  consignees  have  always  protested  against  its  introduction  into 
the  l)ill  of  lading. 

By  the  foregoing  it  will  be  seen  tliat  London  is  a  free  port,  and  these  objectionable 
charges  could  not  be  made  were  it  not  for  the  fact  that  American  millers  accept  a 
bill  of  lading  containing  a  clause  contracting  themselves  out  of  the  advantages 
secured  to  them  by  acts  of  rarliament. 

The  danger  of  such  action  is  that  it  places  the  trade  practicnlly  at  tho  mercy  of 
tho  Dock  Company  here,  who  oau,  and  doubtless  will,  if  not  oliootively  opposed, 


RECIPROCITY    STATEMENTS. 


255 


gradually  increase  the  above-mentioned  charges  to  the  serious  loss  of  trade  to  the 
exporting  millers  of  the  United  .States. 

This  clause  is  not  entered  in  bills  of  lading  for  the  carriage  of  American  wheat,  so 
that  Ameriean  millers  have,  by  the  aeeeiitance  of  the  London  clause,  been  taxing 
their  own  manufacture  ia  a  free-trade  country. 


I 


lotected 

that  the 

rate  or 

nld  the 

ling  and 

'lading, 
leu  tliis 
shippers 
jurts  for 

landed 
xlatiou; 

Liners 
itracted 
\s  on  the 

Hour  on 
itill  fur- 
he  act  of 
li  a  way 
the  <'on- 
tion  into 


norcy  of 
^ppusedy 


BRITISH  VESSELS  CARRY  THE  EREIGHT. 

The  Chairman.  Do  you  nhip  in  Americim  or  Eiiglisli  vessels? 

Mr  Crosby.  Well,  just  as  they  may  cliauce  to  be;  but  usually  iu 
English  vessels. 

The  Chairman.  Have  you  brought  this  to  the  attention  of  the  oceau 
carriers,  about  modifying  their  bills  of  lading  so  as  not  to  subje<;t  you 
to  that  charge? 

Mr.  Crosby.  Yes;  and  we  have  not  got  much  satisfaction. 

The  Chairman.  What  do  they  say  on  that?    Do  they  insist  it  is  ". 
proper  chai'ge,  or  say  they  can  not  help  this;  or  ^vhat  excuse  do  th< 
give  for  issuing  a  bill  of  lading  that  is  treated  by  an  English  court  as:  i 
contract  between  an  American  shipper  and  the  dock  owner? 

Mr.  CROSBY^  They  have  said  this:  It  is  for  the  convenience  of  the 
consignee,  and  that  is  why  they  do  it;  but  the  consignee  says  it  is  not 
any  such  thing,  and  they  are  protesting  against  it.  And  as  this  draft 
statement  shows,  they  have  gone  so  far  as  to  take  it  up  by  their  organi- 
zation and  fight  it.    They  are  big,  and  move  slowly. 

The  Chairman.  Have  you  any  suggestion  as  to  the  specific  kind  of 
legislation  vvhich  you  think  would  meet  this  evil ? 

Mr. Crosby.  Ido  notknowexactly  whichchannel  anysuggestion  would 
come  from,  but  as  far  as  we  see  at  Minneai)olis  we  think  a  clause  should 
be  added  to  the  Ilarter  bill,  or  some  amendment  put  there  which  pro- 
vides a  bill  of  lading  shall  be  furnished  containing  certain  specilica- 
tions,  and  the  condition  of  the  goods  and  certain  other  things.  Now, 
if  that  can  be  amended  so  as  to  say,  also,  this  bill  of  lading  shall  con- 
tain the  conditions  of  the  contract,  so  we  at  Minneapolis,  Ht.  Louis, 
Duluth,  or  Chicago  would  know  what  we  are  signing  to  begin  with. 
Then,  as  to  the  other  point,  as  to  what  special  action  would  be  to  stop 
this  discrimination,  I  do  not  pretend  to  say  in  regard  to  that.  We  have 
felt  the  grievance  and  have  come  to  see  what  we  can  do. 

The  Chairman.  If  Congress  would  have  the  right  to  enact  that  no 
bill  of  lading,  such  as  you  now  mention,  should  contain  such  clause  as 
that,  of  coui'so  that  would  meet  it.  Have  your  attorneys  looked  into 
the  case  to  know  whether  that  is  feasible? 

Mr.  Crosby.  No,  they  have  not. 

Mr,  Tawney.  I  sui)pose  there  is  another  way  we  can  get  at  it — by 
retaliation;  they  are  discriminating  against  us? 

The  Chairman.  This  is  a  matter  of  contract,  and  if  the  English  c(mrts 
held  m  the  American  courts  do,  as  I  understand  it,  there  wouhl  be  no 
trouble  at  all.  You  have  a  receii)t  issued  by  an  ex])res8  com])any,  for 
exam])le,  Avhich  has  a  variety  of  conditions  in  it.  You  can  not  elimi- 
inite  these  and  you  take  it  as  it  is,  but  the  courts  have  held  that  if  there 
are  any  unreasonable  conditions  in  there  or  anything  unfair  they  are 
inoperative,  but  in  the  English  courts  whatever  is  in  there  they  give 
force  and  eftect  to.  1  did  not  mean,  Mr.  (Crosby,  to  interrupt  your  line 
of  remarks.    Just  go  on  ami  state  what  you  choose  to  say  on  this  subje<^t. 

Mr.  Crosby.  That  has  covered  the  main  points  1  had  iu  mind  if  I 
make  clear  the  discrimination  we  meet. 

Mr.  Tawney.  It  is  not  a  discrimination,  however,  due  to  any  law  of 
England  j  it  is  a  discrimiuatiou  that  resulta 


!4    i. 


ill 


Pf 


:i-^: 


256 


RECIPROCITY    STATEMENTS. 


Mr.  DoLLiVER.  It  seems  to  be  du  to  the  size  of  tbe  sliii)  more  than 
anything  else. 

Mr.  Tawney  (continuing).  It  seems  to  be  duo  to  the  fact  that  this 
product  is  shipped  over  in  vessels  which  can  not  reach  the  river  at 
places  where  the  vessels  from  other  countries  reach  and  deliver  their 
cargoes.  If  they  were  large  vessels  landing  at  the  same  docks  your 
vessels  do  they  would  be  subject  to  the  same  charges,  would  they  net? 

Mr.  Ckosby'.  They  would,  undoubtedly. 

Mr.  Tawney.  So  it  is  not  a  discrimination  resulting  i'rom  any  law  of 
Great  Britain,  but  it  is  a  discrimination  which  results  fruni  conditions 
under  which  your  products  are  shipped? 

FURTHER  DISCRIMINATION  IN  THE  WHEAT  TRADE. 

Mr.  Crosby.  There  is  another  discrimination  in  which  the  size  of  the 
vessel  is  the  same,  and  that  is  wheat  is  by  the  bill  of  lading,  the  second 
part  of  that  London  clause,  wheat  is  jiarticulaily  mentioned  as  being 
free  of  all  charges  whatever, 

iNIr.  Tawney.  That  is  a  discrimination  in  favor  of  the  home  manu- 
facturer over  other  manufacturers? 

Mr.  Crosby.  Yes;  therefore  the  English  miller  gets  his  wheat  up 
the  Thames  at  the  mills  and  puts  it  on  the  markets  without  having  to 
pay  these  Loiulon  charges  whatever,  and  we,  on  the  contrary,  have  to 
furnish  him  the  free  wheat  and  in  this  free  trade  port  we  have  to  pay 
duty;  that  is  what  it  amoimts  to. 

Mr.  Tawney.  About  what  do  these  charges  amount  to  per  barrel  of 
flour? 

Mr.  Crosby.  It  is  Is.  Gd.  ])er  t(m,  and  what  has  really  started  the 
whole  agitation,  both  on  this  side  and  that,  is  that  the  dock  companies 
and  shipping  comi)anies  have  proposed  to  increase  these  chaiges  from 
Is.  (id.  to  2s.,  perha[)s,  and  decreasing  the  time  in  which  the  Hour  nmy 
be  taken  from  the  (piay  after  landing  without  i)enalty  attaching,  and 
the  time  they  suggest  is  so  short — twenty-four  hours — that  i)enalty 
would  always  attach,  and  the  charges  on  that  would  perhaps  be  Gs.  or 
78.  per  ton.  We  should  not  feel  it  so  much  were  it  not  for  the  fact  that 
London  is  the  great  overtlow  market  for  all  our  flour.  We  have  to 
ship  there.  We  are  all  sliipi)ing  there  throughout  the  year,  and  it  is  a 
very  conservative  estimate  to  say,  at  not  more  tluin  cost,  and  often  we 
are  shipping  and  selling  there  at  a  loss  of  10  or  15  cents  a  barrel.  Mr. 
Bovey,  here,  attends  to  the  export  portion  of  our  business,  and  he  may 
may  have  something  to  add  to  what  1  have  said. 


STATEMENT  OF  ME.  CHARLES  C.  BOVEY,  OF  MINNEAPOLIS. 

Mr.  Bovey  said : 

Mr.  Chairman  and  Gentlemen:  When  Mr.  Tillsbury  was  here  and 
spoke  to  you  he  mentioned  the  jiorts  where  the  American  millers  ure 
shut  out — Germany,  France,  Sweden — ami  now  co-day  we  are  talking 
on  only  one  port;  but  while  only  one,  it  is  the  largest.  Mr.  Crosby  has 
already  said  London  is  the  great  dum]>ing  ground  of  American  flour. 
Our  mills  can  grind  more  tlour  than  can  be  consumed  at  home;  we 
can  make  bread  cheaper  the  more  flour  we  can  nuvke,  and  the  nu)re  sur- 
plus we  can  put  abroad  of  course  the  more  i>rotitable  it  beconu's  to  the 
American  millers.    So  that  a  discriudnatiou  against  the  American 


RECIPROCITY    STATEMENTS. 


257 


leiiiul 

rs  iiro 
tlkii)^ 
)y  has 
tlour. 
je;  we 
[•e  8ur- 
to  the 
iiican 


miller  in  a  port  like  London  is  a  very  dire  disaster,  especially  this  j^ear, 
when  the  French  tlonrs  are  finding  such  ready  sale  over  there.  We 
look  this  year,  with  the  shortage  in  the  winter  wheat  States,  to  be 
blessed  with  a  market  which  will  take  care  of  all  our  overflow,  and  sud- 
denly we  are  confronted  with  the  French,  who  are  getting  into  London, 
as  INlr.  Crosby  said,  by  the  fact  they  are  bounty-fed  flours,  and  then 
because  they  are  getting  into  London  and  not  suflfering  these  dock 
charges  which  American  flour  suflfers  there. 

The  discrimination  against  flour  and  letting  wheat  in  free  is  more 
than  appears  on  the  8urfac«,  because  the  London  miller  gets  his  wheat 
free  and  gets  also  the  oftal,  or  bran,  or  shorts,  or  whatever  it  may  be, 
from  that  wheat,  and  that  is  where  he  makes  a  great  part  of  his  money. 
There  is  a  great  deal  of  stock,  of  course,  raised  all  through  the  United 
Kingdom,  and  we  can  not  compete  with  these  offals,  bran,  and  shorts 
on  account  of  the  enormous  freight  rates.  We  can  send  our  flours  of 
all  grades  abroad  and  into  London  because  they  are  packed  tightly,  of 
heavy  weight  and  small  bulk,  and  we  get  a  very  low  ocean  freight,  com- 
paratively; but  when  it  comes  to  shipping  bran  and  feed  we  are  shut 
out  entirely  on  account  of  its  bulk,  and  here  is  that  bran  and  feed  now 
coming  in  the  8hai)e  of  wheat  to  enable  the  miller  in  London  and  other 
])arts  of  the  United  Kingdom  to  sell  his  product  cheaply  becan  -c  he  is 
enjoying  a  good  price  on  his  ottal,  so  I  think  in  looking  at  it  from  that 
l)oint  the  discrimination  against  our  flour  is  a  very  grievous  one.  I 
tliink  the  other  points  have  all  been  covered  in  regard  to  the  impor- 
tance of  the  port  of  London. 

Mr.  DoLLiVER.  Is  there  any  practical  remedy  for  that?  It  looks  to 
me  the  thing  arises,  according  to  Mr.  Crosby's  statement,  from  the  fact 
that  the  ocean  carrier  of  American  flour  is  compelled  to  laud  at  these 
licensed  docks. 

Mr.  BovEV.  Yes;  but  the  English  Parliament  says  that  the  vessels 
shall  discharge  free. 

Mr.  DoLLivER.  "Shall"  discharge,  or  "may"  discharge? 

Mr.  BovEY.  No ;  " shall"  discharge.  And,  you  see,  if  the  vessel  could 
discharge  with  these  lighters  free,  as  Parliament  says  it  must,  then  we 
would  get  into  London  in  the  same  way  these  French  crafts  do. 

Mr.  DoLLivEB.  I  do  not  understand  how  they  levy  this  assess- 
ment  

Mr.  Tawney.  By  <ontract. 

Mr.  DoLLiVER  (Co  .tinning).  If  Parliament  says  these  ships  must 
dischai  ue  free. 

Mr.  B<    'EY.  We  have  contracted  ourselves  to  do  it. 

Mr.  Ta  ney.  They  have  waived  the  benefit  of  that  act  of  Parlia- 
ment. 

Mr.  DoLJ  VEB.  Then  make  a  contract  which  is  more  satisfactory 
than  that  wliich  yon  have. 

Mr.  Crosby.  We  asked  for  bread  and  they  gave  us  a  stone. 

Mr.  DoLLiVER.  Then  take  another  ciunpany;  there  are  a  good  many 
lines  there.  It  seems  to  me  that  if  this  is  an  unjust  charge  you  should 
be  able  to  get  a  steamer  to  carry  that  flour. 

Mr.  BovEY.  That  is  right,  biit  you  know  they  are  joined  together. 
They  i'.ro  all  bound  by  rules  together,  in  order  to  hohl  thi^r  rates. 

mV.  Dolliver.  I  do  not  know  that  Congress  has  ever  undertaken  to 
regulate  the  language  of  those  ocean  contracts  and  bills  of  lading. 

H.  Rep.  2263 17 


^'1 


258 


RECIPROCITY    STATEMENTS. 


THE  HARTER  LAW. 


Mr.  BovET.  The  Harter  law  has  taken  it  up  vigorously  and  protected 
the  miller  against  the  steamship  company,  and  it  seems  to  me  it  might 
be  possible 

Mr.  Tawne Y.  Is  the  Harter  bill  a  law  or  a  bill  pending  ? 

Mr.  BovEY.  It  is  a  law.    It  passed  February,  1893,  I  think. 

Mr.  Orosey.  And  provides  that  certain  requirements  of  the  bill  of 
lading  the  steamship  companies  and  carriers  had  been  putting  in  shall 
be  null  and  void. 

Mr.  Tawney.  Have  you  ever  applied  through  the  State  Department 
here  to  the  consul  at  London  for  the  purpose  of  having  the  matter 
adjusted? 

Mr.  Boyey.  That  thought  came  to  us,  that  perhaps  our  consul  there 
would  be  able  to  move  against  the  steamship  companies  to  that  end 
and  assist  us,  but  we  have  not  done  it. 

Mr.  Tawney.  I  was  thinking  as  you  were  talking  that  it  might  be  a 
good  idea  for  you  to  make  application  through  the  Stat^^*^  Department 
to  the  consul  there  and  have  the  State  Department  take  it  up,  and  if 
there  is  an  unjust  dis(;rimination  I  think  it  would  be  the  duty  of  the 
State  Department  to  see  if  the  discriminations  could  not  be  corrected, 
and  it  might  be  accomplished  in  that  way;  or  if  there  is  any  practical 
suggestion  in  the  way  of  amendment  to  the  Harter  bill  which  would 
accomplish  the  result  which  j'^ou  desire,  it  miglit  be  entirely  feasible 
to  have  that  amendment  prepared  and  introduced,  and  possibly  it  might 
get  through. 

Mr.  BovEY.  The  way  the  thing  works  out,  it  is  really  a  tax. 

Mr.  Taavney.  Let  me  ask  you  before  you  take  your  seat  as  to  the 
eft'ect  of  the  reciprocity  clause  of  the  act  of  1890  on  the  spring  wheat 
Hour  trade  abroad — whether  you  were  able  to  increase  your  foreign 
trade  during  the  continuance  of  that  provision,  or  whether  you  are 
injured  in  any  manner  by  its  repeal  1 

Mr,  BovEY.  I  really  do  not  know  the  facts  of  the  1890  bill. 

Mr.  Tawney.  The  reciprocity  clause,  you  know,  enabled  the  winter 
wheat  millers  of  the  country  to  ship  to  foreign  ports  under  more  favor- 
able conditions  than  they  had  ever  shipyted  before  by  getting  greatly 
reduced  rates,  and  I  did  not  know  whether  you  spring  wheat  millers 
were  similarly  situated  or  not? 

Mr.  Fletcher.  Under  reciprocity  the  shipment  of  spring  wheat 
tiour  affected  them  the  same  as  winter  wheat,  and  was  greatly  increased 
while  reciprocity  existed,  and  when  that  was  repealed  then  it  was  very 
much  diminished. 

Mr,  BovEY.  lean  say  anything  which  helps  the  winter  wheat  miller 
also  helps  the  spring  wheat  miller,  and  especialljnu  regard  to  the  exi)<)rt8 
abroad,  because  what  we  want  to  do  is  to  have  all  the  openings  possi- 
ble for  our  surplus,  and  if  our  winter  wheat  millers  can  put  their  sur 
plus  abroad  the  messure  is  relieved  here,  and  what  helps  one  helps  the 
other.  We  are  all  in  the  same  boat  so  far  as  looking  to  an  open  market 
abroad. 

Mr.  Tawney.  Were  you  connected  with  the  (Jrosby-Washburn 
establishment  in  1802? 

Mr.  BovEY.  Yes;  that  was  just  the  beginning  of  my  career  tliere. 


CONSUMPTION   OF  WINTER   WHEAT  FLOUR. 

Mr.  Tawney.  Do  you  or  Mr.  Crosby  know  how  the  consumption  of 
winter  wheat  Hour  this  past  year  compared  with  the  same  Hour  in  1802 
in  this  country  for  the  home  market? 


li^M^^Sii. 


RECIPROCITY   STATEMENTS. 


259 


Mr.  BoVET.  The  consumption  lias  of  course  been  very  mucli  hurt 
here  this  year.  The  winter  wheat  millers  have  suttered  very  much  here 
from  the  small  crop,  and  the  spring  wheat  millers  hav»j  pushed  into 
new  territory  this  year,  so  in  answering  that  I  should  say  the  8i)ring 
wheat  has  increased  its  consumption,  and  the  winter  wheat  lost  this 
year,  and  it  is  greatly  by  reason  of  the  shortage  of  our  crop.  Whetiier 
these  conditions  will  remain  under  more  favorable  conditi(ms  for  the 
winter  wheat  millers  1  do  not  know.  I  think  it  would  react  a  little  in 
its  favor. 

3lr.  Tamney.  Are  there  any  exhibits  you  wish  to  file  in  connection 
witli  your  renuirks  ? 

Mr.  Crosby.  There  is  the  draft  statement  on  the  London  clause  and 
a  iJCtilion  signed  by  Mr.  IMllsbury,  Mr.  Davis,  and  others  j  also  a  letter 
from  the  National  Alillers'  Association. 

Chicago,  Jjtril  10, 1S96. 
John  Crosby, 

Arlington  Ifotvl,  Washluf/ton,  D.  G. 

Dear  Siu:  At  the  reciiiest  of  Mr.  C.  A.  Pillsbury,  I  bo;?  to  advise  you  that  the  fol- 
lowing resolution  was  unanimously  adopted  at  a  meeting  of  the  board  of  managers 
of  the  Millers'  National  Association  held  at  Chicago  this  day  : 

"Resolved,  That  the  Millers'  National  Association  of  the  United  States  protests 
against  the  attempt  that  is  being  made  by  transatlantic  etoamshi])  lines  and  dock 
comiianies  of  London,  through  the  unilbnu  oxjtort  bill  of  lading  now  tendered  by 
carriers,  to  impose  a  landing  charge  u]i()n  nu^rcliandise  coming  from  United  States 
]iorts,  notwithstanding  that  the  laws  of  the  liritish  Parliament  prohibit  such  charge 
;Mid  make  Loudon  a  free  port,  an<l  wo  earnestly  urge  that  natiouiil  legislation  be  had, 
it  ntHoasary,  to  prevent  the  enforcement  of  such  discrimination  against  the  products 
of  this  country." 

Yours,  reepeotfully,  Frank  Ba&ry,  Secretary. 


LONDON   DOCK  CUAKGKS  AND  OCKAN    BILLS  OF   LADING. 


winter 

|e  favor- 

S^^t-eatly 

millers 

wheat 

l(!reased 

as  very 

miller 
exports 

possi- 
leir  sur- 
J'lps  the 
(market 

Ishburn 

hiere. 


Ition  of 
in  1892 


American  flour  millers  sell  iheir  flour  in  London,  Liverpool,  Glasgow,  and  all 
other  ports  of  the  United  Kingdom,  c.  i.  f.,  and  draw  a  sixty-day  bill  of  exchange 
upon  shipping  the  flour.  Their  consignees,  upon  taking  up  the  bills  of  exchange, 
obtain  the  bills  of  lading  attached  thereto  and  obtain  delivery  of  the  flour.  The 
bill  of  exchange  includes  cost,  insurance,  and  freight,  but  does  not  include  the  land- 
ing and  warehouse  charges.  These  latter  the  consignee  must  pay  before  receiving 
their  flour,  and,  of  course,  although  they  are  paid  by  the  consignees,  these  charges 
in  the  last  result  come  out  of  the  price  obtained  by  American  flour  milhsrs. 

London  is  the  only  port  of  the  United  Kingdom  which  has  free  docks,  and  at 
which  the  consignees  are  entitled  to  obtain  their  flour  without  paying  any  charges 
to  steamship  or  dock  company  for  the  delivery  of  their  goods.  And  in  the  ocean 
bill  of  lading,  Loudon  is  the  only  port  for  which  there  is  expressly  stipulated  and 
ascertained  a  landing  diarge. 

This  landing  or  dock  charge  at  ])resent  is  Is.  6d.  per  ton  weight.  It  is  now  pro- 
liosed  by  the  dock  and  steamship  coiupanies  to  increase  this  charge  to  2s.  per  t(m 
weight,  and  to  decrease  the  time  williiu  which  tlic  consignee  may  receive  his  goods 
Irom  the  present  time  of  seventy-two  liours  to  twenty-four  hours. 

The  inland  fli.ur  millers  of  the  United  States  send  their  Hour  I'orward  on  an  export 
tlu'ough  bill  of  lading,  which  does  not  contain  the  cdnditious  and  clauses  of  the  oce.in 
liill  of  lading,  but  is,  nevertheless,  by  ex{)res8  terms,  made  subject  to  all  the  con- 
ditions and  provisions  of  the  ocean  bills  of  lading  in  vogue  at  the  date  thereof. 

The  above  increase  in  charge  an<l  decrease  in  lime  liave  driven  us  to  an  investiga- 
tioa  of  this  landing  charge  and  the  export  bill  of  lading,  with  the  results  that  we 
t'md  that  not  only  have  wo  been  discriminated  against  and  given  an  unintelligible 
bill  of  lading  but  also  that  any  lauding  or  dock  charge  at  these  docks  is  illegal 
under  the  acts  of  Parliament. 

XL 

This  increase  of  the  landing  charge  has  been  proposed  by  the  Loiubui  and  India 
Docks  .Joint  Committee.  This  joint  (^(Uiimittee  is  the  managing  board  of  the  London 
and  India  Docks.     The  Loudon  and  India  Docks  is  a  consolidation  ctl'ected  iu  1888  of 


lA 


;i 


260 


RECIPROCITY   STATEMENTS. 


the  St.  Catherine,  the  Victoria,  tlie  Albert,  West  India,  and  East  IiKlia  clocks,  which 
comprise  all  of  the  docks  at  wliich  it  is  cnstouiary  or  usual  to  land  American  llour. 

These  dock  couipanioa  were  created  by  i)rivate  acts  of  Parlianit;nt,  and  wliile  they 
arc,  in  their  ownership,  private  concerns,  they  are,  from  the  nature  of  their  busi- 
ness, public  servants,  and  they  are  subject  to  the  control  of  the  Crown  in  the  matters 
of  service  and  charges  as  completely  as  our  railroads  and  warehouses  in  the  United 
Slates  are  subject  to  the  control  of  Federal  and  State  legislation. 

The  London  docks  may  make  charges  for  tlio  use  of  their  docks  by  ships  and  ship- 
owners, but  it  is  provitled  explicitly  in  the  act  of  1828  that  owners  of  goods  may 
bring  their  own  lighters  or  craft  free  of  all  charge  into  the  docks  and  load  their 
goods  "  ex  ship  "  free  of  all  charge.  (See  the  first  quotation  of  law  in  the  London 
draft  attached  to  this  petition.) 

This  clause  covers  the  case  of  a  consignee  who  provides  his  own  lighters  and  takes 
his  freight  directly  "ex  ship."  But  if  these  shi])owners  should,  for  the  purpose  of 
convenience  in  assorting  the  same,  discharge  their  freight  on  to  the  quays  of  the  Lon- 
don docks  instead  of  delivering  it  "ex  ship"  to  tlie  consignee,  there  is  still  an  act  of 
rarliameni  protecting  the  consignee,  namely,  "The  mercliants' ship]»ing  act,  amend- 
ment act  18()2,"  chapter  63,  article  67,  section  6.  (See  the  second  statement  of  law 
in  the  Loudon  draft  attached  hereto.) 

Thus  it  api)ears  that  American  Hour  is  amply  protected  from  charges  at  the  Lon- 
don docks,  cither  in  case  thi;  consignee  takes  it  in  liis  own  lighters,  or  in  case  the  shij)- 
owner  lands  it  on  the  (juays  for  the  purpose  of  assorting  it.  These  two  cases  are 
general  cases  and  cover  all  the  modes  of  landing  through. 

m. 

While  this  landing  charge  of  Is.  6d.  per  ton  obtained  by  the  London  clause  is  very 
burdensome,  it  could  be  better  borne  were  it  not  for  the  fact  that,  by  tlio  same  London 
clause,  wheat  is  explicitly  freed  from  any  charge,  and,  tliereforo,  in  the  free  port  of 
London  the  raw  material  enters  free  and  the  manufactured  article  is  taxed.  At  this 
]t()int  it  should  be  noted  that  in  the  proposed  cliangcs  which  make  tlie  tax  on  the 
manufactured  articles  till  more  burdensome  the  raw  material  is  still  admitted  free, 
and  no  change  is  proposed  in  connection  with  it. 

There  is  another  form  of  discrimination  which  American  flour  must  meet  under 
this  London  clause.  All  American  flours  must  be  landed,  by  reason  of  the  deep 
draft  of  the  transatlantic  ships,  at  the  large  London  docks,  and  therefore  incur 
this  tax  of  Is.  6d.  On  the  other  hand,  French  and  English  flours,  for  instance,  from 
Cardiff,  Liverpool,  or  Hartlepool,  can  be  brought  up  the  Thames  in  ships  of  lighter 
draft,  need  not  be  landed  at  the  regular  London  docks,  and,  therefore,  escape  all 
tax.    The  French  flour  is  a  bounty-fed  flour  besides. 

Therefore  tlie  American  flour  millers  must  meet  the  comi)etition  of  flours  made 
from  their  own  wheat  which  is  discriminated  against  them  in  a  free-trade  country. 

-  ,:m    "    , 

We  do  not  to-day  ask  that  the  proposed  changes  in  the  London  clause  be  pre- 
vented— we  ask  that  the  entire  London  clause  be  stricken  out  and  that  landing 
charges  in  London  be  left  to  take  their  natural  course.  This  will  mean  in  the  future 
the  settlement  of  all  such  questions  by  Englishmen  in  their  own  English  port  and 
under  their  self-enacted  acts  of  legislation.  We  must  ask  this  because  of  the  dan- 
gers that  may  arise  in  the  future  from  other  possible  changes  in  the  Loudon  clause 
or  other  added  clauses.    Tak«   'le  proposed  changes,  for  example. 

At  preseut,  the  consignee  has  Bcvonty-two  hours  in  which  to  take  his  goods  from 
the  quay  without  paying  more  than  Is.  6d.  The  proposed  change  in  time  is  to  limit 
this  period  to  twenty-four  hours.  Our  consignees  advise  us  that  it  will  often  be 
physically  impossible  to  remove  their  flour  in  twenty-four  hours.  If  it  is  not  so 
rernoved,  then  other  charges  immediately  accrue  to  the  extent  of  2s.  6d.  up  to  a 
possible  ds.  per  ton.    Such  a  tax  as  this  would  be  practically  prohibitive. 

This  reduction  of  time  is  of  more  vital  imixirtance  than  the  incireasein  the  amount 
of  charge.  Yet  an  increase  of  6d.  per  ton,  trifling  as  it  may  seem,  will  put  still  fur- 
ther difficulties  in  the  way  of  selling  an  article  which  is  already  discriminated 
against  and  which  is,  for  the  most  part,  laid  down  iu  Loudon  at  a  price  not  to 
exceed  cost. 

V. 

As  was  said,  the  inland  shipper  of  flovr  (who,  by  the  way,  ships  by  far  the  greater 
part  of  the  flour  exported  from  this  country)  sends  his  flour  forward  on  what  is 
called  an  export  bill  of  lading.     This  bill  conlains  tlio  following  clause: 

"  17.  That  the  property  covered  by  this  bill  of  lading  is  subject  to  all  conditions 
expressed  in  the  regular  forms  of  bills  of  lading  iu  use  by  the  steamship  company  at 


RECIPROCITY    STATEMENTS. 


261 


be  pre- 

iiiHiing 

iuture 

t  and 

daii- 

clauso 

Is  from 
o  limit 

fteii  bp 
uot  so 
p  to  a 

imouiit 
ill  fiir- 
iuiittMl 
uot  to 


ditioiis 
any  at 


time  of  shipment  and  to  all  local  rules  and  regulations  at  port  of  destination  not 
expressly  provided  for  by  tlie  clauses  heroin," 

The  inland  shipper  never  sees  the  rej;nlar  forms  of  bills  of  lading  in  use  by  the 
steamship  company,  nor  do  the  inland  representatives  of  the  railroad  or  transit  com- 
panies have  any  knowledge  of  these  conditions.  But,  if  they  did,  what  protection 
would  the  inland  8hi])per  have  against  such  changes  as  may  be  made  from  time  to 
time  in  the  bills  of  lading  in  use  by  the  steamship  companiesT 

It  is  a  right  of  the  first  moment  that  a  contracting  party  should  be  informed  of  all 
the  terms  and  conditioue  which  are  contained  in  the  contract  he  is  undertaking. 

There  was  a  time  when  the  shipowner!  paid  the  dock  companies  lOd.  per  ton  for 
each  ton  they  lauded  of  tlieir  cargoes  on  the  quays.  Th'"  was  a  part  of  the  ship's 
expense  while  in  dock.  It  was  not  a  pro])er  charge  for  the  consignee  to  assume,  and, 
in  fact,  could  not  bo  enforced,  because  of  the  acts  of  Parliament  we  have  considered. 
If  the  charge  in  question  were  uot  iucluded  in  the  bill  of  lading,  then  the  consignee 
could  not  be  compelled  to  assume  it;  but  by  the  consignor  accepting  a  bill  of  lading 
which  included  such  a  specitically  stated  charge  as  the  London  clause  contained  thti 
consignee,  and  with  him  tlie  consignor,  was  contracted  out  of  his  rights  under  the 
acts  of  Parliament.  The  consignee  could  gain  no  more  rights  under  tlie  bill  of  lading 
than  were  possessed  by  the  consignor;  he  stood  in  the  shoos  of  the  consignor. 

The  London  clause  was  in  the  beginning  short  and  simple  and  to  the  following 
eilfect : 

"  For  the  convenience  of  the  consignees,  we  have  arranged  to  land  all  floor  on  the 
qnays  at  the  exceedingly  low  rate  of  Is.  2d.  per  ton." 

This  clause  has  grown  in  complexity  and  the  charge  has  increased  until  to-day  it 
reads  as  follows : 

"London  clause  (A). — The  shipowners  shall,  at  their  option,  be  entitled  to  land  the 
goods  within  mentioned  on  tlie  quays,  or  discharge  them  into  craft  hired  by  them, 
immediately  on  arrival,  and  at  consignee's  risk  and  expense,  the  shipowner  being 
entitled  to  collect  the  same  charges  on  goods  entered  for  landing  at  the  docks  as  on 
goods  entered  for  delivery  to  lighters.  Consignees  desirous  of  conveying  their  goods 
elsewhere  shall,  on  making  application  to  the  ship's  agents,  or  to  the  Dock  Company, 
within  seventy-two  hours  after  the  steamer  shall  have  boon  reported,  be  entitled  to 
delivery  into  consignee's  lighters  at  the  following  rates,  to  be  paid  with  the  freight  to 
the  ship's  agents  against  release,  or  to  the  Dock  Company  if  so  directed  by  the  ship's 
agents,  viz:  Following  wooden  goods  in  packages — clothes  pegs,  spade  handles, 
blind  rollers,  hubs,  spokes,  wheels,  and  oars,  Is.  per  ton  measurement;  hops,  2b.  6d. ; 
hay,  2s.  per  ton  weight;  lumber,  Is.  6d.  per  tou  measurement,  or  28.  per  ton  weight, 
as  per  margin ;  all  other  goods.  Is.  6d.  per  ton  weight  or  measurement,  at  ship'?  ontiou ; 
minimum  charge,  1  ton.  Cheese  may  also  be  removed  by  consignee's  vans  within  a 
week  after  ship  shall  have  reported,  subject  to  a  like  payment  of  3s.  per  ton  weight. 
Such  sums  include  loading  up  and  wharfage.  Any  single  article  weighing  over  I  ton 
to  be  subject  to  extra  expense  for  handling,  if  incurred.  All  measurement  freight  to 
be  on  the  intake  caliper  measurement  at  New  York,  as  stated  in  margin.  Freights 
by  weight  (grain  excepted)  to  be  paid  upon  the  weight  stated  in  margin,  or  at  ship's 
option  upon  landing  weight.  If  weight  has  been  understated,  the  cost  of  weighing 
to  be  a  charge  upon  the  goods.  All  shipments  of  lumber  and  logs  which  are  sent 
forward  on  a  weight  rate  will  pay  freight  on  the  railroad  weights  furnished  at  Now 
York.  No  alteration  will  bo  permitted  in  any  railroad  weights  or  freights  included 
in  this  bill  of  lading  except  at  ship's  option. 

"(B)  Grain  for  overside  delivery  is  to  be  applied  for  within  twenty-four  hours  of 
ship's  docking,  or  thereafter  immediately  it  becomes  clear.  In  the  absence  of  suffi- 
cient consignee's  craft,  with  respousible  persons  in  charge  to  receive  as  fast  as  ship 
can  discharge  overside  into  lighters  during  dock  working  hours,  the  master  or  agent 
may  laud  or  discharge  into  lighters  at  the  risk  and  exjienae  of  the  consignee.  The 
shipowner  may  land  or  discharge  continuously  day  and  /  or  night;  auy  grain 
landed  or  discharged  for  ship's  convenience  during  usual  dock  hours,  conBi;;iiee's 
craft  being  duly  in  attendance,  and  any  grain  may  he  landed  or  discharged  belnre  or 
after  usualdock  hours  (whether  craft  are  then  in  attendance  or  not),  is  to  bo  given  up 
free  to  cousiguee's  oraft  applying  lor  same  within  seventy-two  hours  from  its  landing 
or  discharge,  otherwise  it  will  bo  subject  to  the  usual  dock  charges.  An  extra  freight 
of  7d.  per  ton  shall  be  paid  to  the  shipowner  on  each  consignment  of  grain  whether 
any  portion  be  landed  or  not.  The  grain  to  be  weighed  at  time  of  discharge,  either 
on  deck  or  quay  at  ship's  option.  Working-out  charges  (including  weighing)  for 
grain  in  bulk  and  /  or  ship's  bags  to  be  paid  by  the  consignee  with  the  freight  to  the 
ship's  agents,  or  to  the  Dock  Company,  if  so  directed  by  the  ship's  agent,  in  exchange 
for  release  at  the  rate  of  Is.  9d.  per  ton  on  wheat,  maize,  and  heavy  grain;  Is.  lid. 
per  ton  on  barley,  and  2s.  per  ton  on  oats.  Neither  party  shall  be  liable  for  any 
interference  with  the  performance  of  the  contract  herein  contained  which  is  caused 
by  strikes  or  lockout  of  seamen,  lightermen,  or  shore  labtirers,  whether  partial  or 
otherwise,  nor  for  any  consequences  of  such  strikes  or  lockout,  but  in  •uou  case  the 


■ft 


262 


RECIPROCITY    STATEMENTS. 


Bhipowner  nhall  be  entitled  to  land  or  put  into  craft  a1,  the  risk  and  expenso  of  con- 
signee. In  case  tlie  grain  shipped  under  this  bill  ol  lading  forms  part  of  a  larger 
bulk,  each  bill  of  lading  to  liear  its  proportion  of  shortage  and  damage,  if  any. 

"Those  London  claueea,  A  and  B,  are  to  form  part  of  this  bill  of  lading,  and  any 
words  at  variance  with  them  are  hereby  canceled. 

"The  exceptions  and  conditions  enumerated  in  this  bill  of  lading  shall  apply  not 
only  during  the  loading  and  voyage,  but  during  tlie  discharge  and  until  the  goods 
and  grain  are  actually  delivered  to  the  consignee,  and  the  persons  handling  the 
goods  and  grain  in  the  ship,  on  the  quays,  or  into  the  lighters,  or  till  delivery  to  the 
consignees,  or  to  the  Dock  Company,  shall  bo  deemed  the  servant*  of  the  shipowner." 

VI. 

Congress  has  already  taken  action  on  bills  of  lading  In  the  Harter  bill  of  the  13th 
of  February,  1893,  and  we  feel  confident  that  if  these  objiictions  had.  'Micn  known  to 
the  trade  and  had  been  brought  forward  at  that  date  clauses  covering  them  would 
have  been  inserted  in  that  act.  Congress  very  properly  takes  steps  to  protect  the 
importation  of  American  food  products  into  Germany  and  upon  the  Continent  gen- 
erally, and  to  see  that  they  are  not  discriminated  agairst  unfairly  and  without  cause. 
We  feel  that  on  investigation  Congress  will  perceive  this  London  clause  to  be  as 
unjust  and  illegal  a  discrimination  against  American  fiour  8hipi)ers  as  are  the  pre- 
tended zeal  and  ciiro  of  Germany  against  American  meaty,  "lui  we  feel  that  the  merits 
of  a  l)ill  of  lading  containing  on  its  face  all  of  the  clauses  and  conditions  of  the  con- 
tract of  shipment  must  be  jiatent  to  all. 

American  Hour  shippers  are  so  scattered  that  it  is  with  great  difficulty  that  they 
could,  unaided  and  alone,  force  the  transatlantic  steamship  companies  to  omit  from 
the  ocean  bills  of  lading  the  objection.able  London  clause.  Therefore  the  aid  of  Con- 
gress is  invoked  to  these  ends: 

1.  That  the  London  clause  in  ocean  bills  of  lading  bo  declared  void  and  of  no  effect. 

2.  That  the  export  bill  of  lading  furnished  to  inland  shippers  shall  contain  on  its 
face  all  the  terms  and  couditious  of  the  contract. 

Chas.  a.  Pillsbury, 
Manager  Pillehunj-  fVashhurn  Flour  Mills. 
.).  G.  Davis  &Co.,  L'ocheater,  \.  Y. 
FuERMAN  MiLi.iNG  Co.,  Superior,  Wis., 

By  A.  KiNGLKR. 

Ii.  D.  Hubbard,  Mankato, 

hKRNHARD   STKRN. 

jS'oktu  Dakota  Milling  Co., 
By  Gko.  Bull,  Treasurer. 

Ckntral  Milling  Co., 
By  a.  R.  Jamrs,  Treanurer, 

WASIIBURN-CltCSBY   CO., 

By  Jamks  S.  Bkll,  President. 


APPENDIX 


ADDRESSES  BEFORE  THE  COMMITTEE  ON  WAYS  AND  MEANS  BY 
REPRESENTATIVES  OF  VARIOUS  INDUSTRIES. 


263 


Wt  I 


t.i1 


S 


%, 


VARIOUS  INDUSTRIES. 


STATEMENT  OF  JOHH  W.  GATES,  OF  CHICAGO,  PRESIDEKT  OF  THE 

ILLINOIS  STEEL  COMPANY. 

Tbe  Chairman.  I  wisli  you  would  first  state  to  tlu  <',omiuittoe  the 
name  of  the  com])auy  you  represent,  the  junount  of  uiuuufacture,  the 
cai)ital  invested,  the  number  of  eniph)yees,  etc. 

Mr.  Gates.  1  represent  the  IllinoiH  Steel  Conipany,  with  headquarters 
at  Ohicajjo.  We  have  a  capital  invested  of  between  $39,()0(),0()0  and 
$4(),()0(),()U0.  We  operate  seventeen  blast  furnaces,  eight  open-lunirth 
furnaces,  seven  iron  and  steel  mills,  three  rail  mills,  two  blown  billet 
slab  mills,  one  pliite  mill,  one  sheet  mill,  one  wire-rod  mill,  two  iron 


mines,  about  twelve  coke 


ovens,  and  we  mine  our  own  coal. 


The  Ch AIRMAN.  What  is  the  number  of  your  employees  in  all? 

Mr.  Gates.  The  number  of  our  employees  varies  from,  1  should  say, 
8,000,  the  lowest,  to  17,000,  the  highest. 

Mr.  M(5Lauein.  Are  all  these  mills  in  the  same  State? 

IVlr.  Gates.  We  have  one  mill  at  South  Milwaukee,  Wis.;  one  at 
Hammond,  Iiid.,  and  the  vc  niaiiider  in  Illinois. 

The  Chairman.  What  is  the  vahio  of  vour  product? 

Mr.  Gates.  From  $20,000,000  to  $30,000,000. 

The  Chairman.  Where  is  your  market  for  tliis;  is  it  entirely  at 
home,  or  partially  at  home  and  partially  fibroad  ? 

Mr.  Gates.  Up  to  1890  the  market  for  the  i)roduct  of  the  Illinois 
Steel  Company  was  exclusively  in  America.  Under  the  reciprocity 
treaties  enacted  at  that  time  we  had  some  foreign  business.  We  had 
very  little  in  1890;  a  little  more  in  1891;  and  gradually  we  did  more 
every  year.  As  far  as  I  know,  there  is  not  to-day  a  nation  that  is  dis- 
criminating against  the  United  States  in  favor  of  other  countries  in  our 
line  of  business.  In  other  words,  1  do  not  know  that  we  run  against 
what  is  known  as  the  favored-nation  clause  in  the  exportation  of  any 
goods  we  manufacture.  We  have  in  the  past.  In  Cuba  a  year  ago 
the  Spanish  authorities  added  three  lines  of  duties.  The  first  was 
exportation  from  Spain,  which  was  a  nominal  duty.  The  second  was 
called  the  favored-nation  schedule,  and  that  included  (lermany  and 
England;  and  the  third  was  the  high  taritt',  and  the  United  States 
came  under  that  tariff.  I  understand  that  has  been  nmditied  so  that 
we  are  practically  on  the  same  basis  to-day  in  exporting  goods  to  Cuba 
that  we  were  prior  to  the  repeal  of  the  reciprocity  act.  The  same,  I 
think,  is  true  in  Brazil.  I  am  not  quite  positive  about  that,  but  during 
the  time  of  the  reciprocity  we  had  what  was  called  the  favored-nation 
clause  in  our  favor.  We  had  a  lower  duty  to  Brazil,  I  think,  than  any 
other  nation.  We  got  into  Brazil  in  good  shape,  and  we  did  a  good 
deal  of  business  there.    That  was  abrogated,  I  think,  in  1894. 

The  Chairman.  But  prior  to  that  repeal  you  had  facilities  superior 
to  your  foreign  competitors  ? 

Mr.  Gates.  Yes,  sirj  and  the  consequence  was  that  our  foreign  trade 
grew  very  fast. 

265 


266 


RECIPROCITY   STATEMENTS. 


The  CixAiTiMAN.  The  repeal  of  the  reciprocity  clause  placed  you  on 
the  same  basis  a«  your  foreign  competitors? 

Mr.  (rATES.  Exactly. 

Mr.  McLauein.  Have  yon  lost  any  trade  by  reason  of  that? 

Mr.  (lATES.  Yes,  sir;  we  have,  and  for  this  reason:  That  wliile  wo 
shnnld  liave  lower  tteights  from  New  York,  Montreal,  Philadel]>hia, 
Haltiiiiore,  or  IJoston  to  South  American  ports,  y«!t  that  is  not  true. 
I' rcijihts  from  Antwerp,  Bremen,  Tiondon,  or  Liverpool  are  lower  to  all 
those  piomineiit  Brazilian  ports  than  from  AnnMicaii  jiorts.  The  reason 
of  that  is  that  the  English  and  Clernians  particularly  got  into  that 
coinitry  at  a  very  early  day,  and  many  of  the  Brazilian  houses  are 
III  r;;ely  owned  by  British  and  German  capital,  and  they  have  regular 
lines  of  steamers.  As  a  consecpiencie,  our  freight  rate  is  30  to  40  per 
eent  higher,  which  makes  it  that  much  greater  hardship  which  we  have 
to  overcome  in  selling  goods.  The  Illinois  Steel  Company,  of  which  1  am 
the  jnesideut,  has  not  done  a  large  business  in  Brazil,  but  our  wire 
company  has  done  a  large  business  in  all  the  South  Am«!rican  ports. 
Our  wire  company  was  able  to  reach  the  markets  under  reciprocity.  1 
do  not  think  we  made  any  money,  however. 

The  Chairman.  You  mean  that  since  the  repeal  of  the  reciprocity 
you  did  business  at  less  profit? 

Mr.  Gates.  We  have  not  made  money,  but  we  have  got  the  business 
nnd  held  on  to  it  by  imiiorting  foreign  steel.  We  ship  it  out,  and  get 
the  drawba(!k.  I  do  not  suppose  that  the  average  profit  has  been  1 
l>er  cent,  but  still  we  have  held  on  to  it,  thinking  that  there  would 
i)e  a  change.  I  wrote  a  letter  to  the  manager  of  the  New  York  ofiice, 
and  I  will  put  this  letter  in  my  testimony.  He  is  thoroughly  posted  on 
the  question. 

The  chairman  read  the  letter,  as  follows : 

Offices  Consoudai'ed  Steel  and  Wirk  Company, 

New  York,  March  18, 1896. 

Dear  Sir  :  Referring  to  the  question  of  advantages  to  American  manufacturers 
under  the  reciprocity  treaties,  we  would  say  that  from  the  time  these  treaties  wore 
put  in  effect  with  the  Latin-American  countries,  and  until  their  termination,  our 
tradt'  JB  barb  wire  with  those  countries  increased  rapidly'  and  uniformly,  and  in 
addition  to  the  trade  in  barb  wire  we  were  able,  for  the  farst  time  in  the  hibtory  of 
our  company — which  covers  more  than  eighteen  years — to  introduce  to  a  certain 
extent  plain  wire  and  wire  nails,  and  everything  indicated  a  continued  expansion  of 
the  volume  of  our  business  had  the  conditions  remained  the  same.  As  soon,  how- 
ever, as  these  treaties  were  abrogated  by  the  adoption  of  the  United  States  of 
another  tariff  law,  our  trade  with  the  countries  which  it  effected  became  practically 
nothing. 

As  an  illustration  of  the  workings  of  these  treaties,  or  rather  the  hardships 
entailed  by  their  abrogation,  we  would  cite  the  instance  of  Cul)a.  This  country 
j)rovides  three  different  rates  of  duty  on  each  and  every  article  imported  into  it. 
These  various  rates  are  designated  as  the  lirst,  second,  and  third  coluuius — the  tirst 
column  being  the  highest  and  the  third  the  lowest — and  on  our  goods  at  least  there  is 
a  wide  ditference  between  each  of  these  columns.  The  third  coluujn  is  an  especially 
low  rate,  and  is  only  granted  to  certain  favored  countries,  under  certain  conditions. 
These  conditions  are  met  by  our  reciprocity  treaty  with  them;  therefore  American 
manufacturers  had  the  benefit  of  the  very  lowest  duty  given  to  anyone  on  goods 
going  into  that  country.  No  sooner  was  the  reciprocity  arrangement  terminated 
than  the  Spanish  authorities  for  the  island  advanced  the  United  States  rate  of  duty 
from  the  third  column  to  the  lirst — that  is,  to  the  highest  possible  limit — and  as 
we  had  no  "  favored-nation  "  treaty  with  Spain  we  of  course  had  no  redress. 

Our  principal  European  competitors — that  is,  the  manufacturers  of  England,  Ger- 
many, and  Belgium — were  enabled  to  ship  their  goods  into  Cuba  under  the  second 
column  of  duties,  and  this,  together  Avith  the  fact  that  there  were  rapid  regular 
lines  of  steamers  from  Europe  to  the  West  Indies,  and  together  with  the  low  rates  of 
freight  wliich  are  always  quoted  from  European  ports,  made  any  exportations  from 
the  United  States  to  Cuba,  at  least  in  our  line  of  goods,  absolutely  out  of  the  question. 

A  siuular  condition  of  affairs  ia  true,  in  a  greater  or  less  degree,  with  all  other 


RECIPROCITY    STATEMENTS. 


2G7 


ally 


<er- 
ond 
liar 
a  of 
•oni 
uu. 
her 


countries  with  whom  the  Unitflil  Statos  had  gimilar  arrangement*.  In  (jenoral,  wo 
may  say  that  the  reciprocity  treaties  wwre  ahHolutoly  and  nn(]ualiti(<dl,  of  j^reat 
advantage  to  Aniorican  nmnufacturivrH,  and  we  should  be  very  glad,  indeed,  to  see 
either  the  same  or  niniilar  ouch  roiiislated,  becsanse  under  no  other  known  set  of  con- 
ditions can  Auiori(win  manufacturers  pay  American  prices  for  labor  and  material  and 
Buccessfully  meet  the  (competition  of  foreign  inaiiufn(!tiirer8. 

Perhaps  the  most  positive  indication  of  the  hardHhip  entailed  on  thenninnfaotnrers 
by  the  abrogation  of  these  treaties,  and  as  an  ilinstiation  of  the  retitliation  insti- 
tnted  by  the  various  countries  with  whom  we  formerly  hud  the  treaticH,  we  would 
say  that  we  have  been  reiiuested,  providing  we  would  make  the  necesHiiry  price,  to 
ship  our  goods  via  European  ports,  lor  rcshipment  to  Central  and  South  American 
countries,  with  the  proviso  that  notiiing  in  the  way  of  murks  on  the  goods  or  piuU- 
nges  should  indicate  the  actual  origin  oi'  the  goods.  In  other  words,  if  the  goods 
were  presumably  not  of  American  mauufaotnre,  they  could  be  entenid  at  a  belter 
rate  of  duty  than  othcrwiee. 

Yonrs,  truly,  F.  E.  Patteuson,  Manager. 

J.  W.  Gatks, 

I'residvnt  Illinois  Steel  Company,  Chicago,  III. 

The  Chairman.  Tliat  is  an  important  letter. 

Mr.  McLauein.  Who  is  the  writer  of  that  lettert 

Mr.  Gates.  Mr.  Patterson,  the  nianaovr  of  the  Consolidated  Steel 
and  Wire  Coni]»any,  of  which  I  am  a  director.  The  avera/^e  number  of 
men  employed  by  the  Illinois  Steel  Company  in  189.~),  1  lind  by  reference, 
is  10,L\S:i;  the  wages  paid,  $<J,nr)a,75)5;  freight  i)aid,  $(>,3;J7,44().ai, 

The  American  manufacturers  not  only  want  reciprocity  and  protec- 
tion, but  subsidized  lines  of  steamers.  The  shipping  fitcilities  from 
American  ports  are  one  of  the  greatest  handicaps  to  American  manu- 
facturers. 

We  have  an  office  in  London  and  one  in  Liverpool,  and  we  are  con- 
tinually checking  up  freight  rates.  We  can  get  a  freight  rate  to-day 
of  8  shillings  and  3  pence  to  San  Francisco,  which  would  be  about  $2; 
whereas  to  ship  from  New  York  to  San  Francisco  is  about  .9(5.  We  can 
ship  from  Liverpool  to  San  Francisco  for  $2,  and  can  not  do  it  for  less 
than  $()  from  New  York. 

Mr.  McLaurin.  What  is  the  reason  for  that? 

Mr.  Gates.  The  cause  for  that  is  that  the  Englishmen  have  got  to 
buy  American  products.  They  must  either  send  their  boats  back  in 
ballast,  or  get  a  load  at  any  rate  they  can.  They  are  always  willing  to 
name  a  rate  which  is  one-half  the  American  rate.  We  are  prohibited, 
from  shipping  froni  one  American  port  to  another  in  our  coastwise  trade 
under  the  law,  excei)t  in  American  bottoms.  We  can  not  load  a  boat 
in  New  York  and  send  it  to  San  Francisco,  unless  it  is  an  American 
boat.  If  we  could  do  that,  it  would  help  American  shipbuilding  as 
much  as  anything  else.  The  rate  from  New  York  to  Galveston  is  $3.80, 
and  the  rate  to  Liverpool  is  $1.75.  Li'  we  ship  to  Gal/eston,  we  can 
not  pick  up  a  tramp  steamer,  but  we  must  get  an  American  bottom  in 
which  to  ship;  otherwise  they  would  seize  our  goods  upon  arrival.  In 
times  past  this  has  caused  litigation. 

The  Chairman.  The  line  of  argument  which  you  wish  to  develop  is 
this:  By  a  system  of  subsidizing  steamships,  the  same  as  is  done  in 
England  and  Germany,  and  has  been  for  one  hundred  years,  we  could, 
you  think,  establish  a  merchant  marine,  and  thus  reduce  the  cost  of 
transportation  to  the  minimum  ? 

Mr.  Gates.  Yes,  sir;  that  would  help  the  American  manufacturer 
fully  as  much  as  the  tariff. 

The  Chairman.  In  other  words,  the  question  of  trans]iortation  is 
one  of  the  items  to  be  considered  in  the  sale  of  the  product  in  foreign 
countr?ea  ? 


'r 


268 


RECIPROCITY    STATEMENTS. 


Mr.  Gates.  Yes,  sir;  and  I  will  give  you  an  illustration  of  that:  The 
San  Joaquin  Valley  Kailway  Company  wanted  to  buy  18,000  tons  of 
rails.  We  figured  on  the  freight  rate  from  Chicago  to  San  Francisco, 
and  the  best  rate  we  could  get  was  $13.44  per  gross  ton.  The  English 
shipped  them  for  Ss,  paid  $7.H4  duty,  and  saved  $.'5.50  over  our  ])rice; 
so  that  transportation  is  an  important  item.  When  we  strike  the 
(xulf  ports  or  the  Pacific  yjorts  the  American  manufacturer  is  ha,  ;ii- 
capped  against  the  Englisli  on  account  of  the  rates  of  transportation. 

The  CnA  iRMAN.  One  of  the  reasons,  as  you  well  stated,  why  English 
call  transport  goods,  iron  and  steel,  cheaper,  is  that  they  take  it  instead 
of  ballast.    They  intend  to  make  profits  on  the  return  trip  ? 

Mr.  Gates.  Yes,  sir;  and  then  they  are  subsidized  by  their  Govern- 
ments, especially  in  Germany.  From  the  Krupp  Works  to  the  sea- 
board the  freight  rate  would  be  128,  or  about  $3  per  ton,  if  the 
freight  was  for  export  going  ])ast  Bremen  or  Antwerp,  while  the  rate 
on  American  freight  would  be  about  4  marks  for  the  same  distance. 
In  other  words,  the  German  Government  protects  its  manufacturers  by 
making  low  rates  on  everything  going  out  of  the  country,  while  mi  the 
United  States  it  is  higher  on  the  lu)me  con.sumption. 

In  the  questions  sent  out  by  this  committee  we  were  asked  the  out- 
]nit  of  the  establishment,  compared  with  that  of  years  ago.  In  1890 
our  output  was  about  450,000 official  tons;  and  that  450.000  official  tons 
of  material  brought  $25,000,000.  In  1895  our  official  outp'it  was 
875,000  tons,  and  brought  less  than  $22,000,000. 

The  Chairman,  Wh.«t  has  been  the  condition  of  trade  in  your  line 
during  the  last  two  years  ? 

Mr.  Gates.  In  the  last  two  vears  the  Illinois  Steel  Company  employed 
$35,000,000  of  capital,  and  made  in  profits  in  189.'},  1894,  and  1895,  about 
$300,000  in  three  years.  Our  reports  are  published,  and  it  is  a  matter 
of  public  information. 

As  to  question  14 — What  advantage  did  your  foreign  competitor  have 
in  cost  of  manufactu  le  and  transjiortation  charges  to  foreign  marki'ts? — 
I  would  say  that  American  ore  would  be  far  cheapest  because  we  have 
better  material,  but  the  cost  of  labor  in  mining  is  so  much  higher  in 
Arac'ica  that  the  cost  of  delivery  at  our  works  is  somewhat  higher  than 
it  is  to  the  works  on  tlie  other  side.  The  wages  ])aid  to  workingmen  is 
very  much  higher  here  than  it  is  in  England  and  Germany,  but  we  have 
better  facilities  for  turning  out  large  quantities  than  they  have,  and,  as 
a  consequence,  while  we  can  not  compete  flat,  we  can  come  close  to  it, 
and  are  willing  to  sell  our  surplus  at  a  loss  in  order  to  keep  the  works 
running. 

'i'he  Chairman.  In  your  iron  and  steel  mills  at  Chicago  the  domestic 
trade  is  the  one  that  interests  you  most,  but  in  tiie  wire-rod  mill  you 
are  interested  in  the  South  American  trade? 

Mr.  Gateh.  Yes,  sir. 

The  Chairman.  You  are  interostod  iu  the  roestablishment  of  the 
principle  of  reciprocity? 

Mr.  Gates.  Very  nuich. 


STATEMENT  OF  MB.  EUGENE  LEVERING,  PRESIDENT  OF  THE 
BALTIMORE  BOARD  OF  TRADE. 

The  Chairman,  ricjise  state  your  name,  residciice,  and  business. 

Mr.  Levering.  I  rm  president  of  the  Board  oi  Trade  of  Baltimore, 
and  I  am  interested  in  the  trade  with  Brazil.  We  have  been  engaged 
in  business  iu  Kio  and  Santos  for  a  number  of  years,  and  by  reason  of 


RECIPROCITY    STATEMENTS. 


269 


the  abrogation  of  the  reciprocity  treaty  our  trade  is  snfteriiig  severely. 
There  are  other  reasons  which  have  complicated  the  nituiition.  Under 
recent  enactments  in  Brazil,  they  have  imjwsed  an  additional  duty  on 
exports  of  our  flour,  and  they  have  taken  off  the  duty  on  u  heat.  lialti- 
more  claims  to  be  the  only  city  in  the  United  States  which  has  now  got 
an  American  fleet  of  large  tonnage  trading  in  that  country;  and  that 
shipping  business  is  je()])ardized,  because  the  flour  trade  is  our  main 
export,  and  furnishes  freight  for  these  vessels,  and  it  is  now  hampered. 
We  do  not  know  what  to  do  with  our  vessels.  We  recently  gave  an 
order  for  a  new  vessel  to  be  built  in  Maine.  I  want  to  say  that  during 
the  continuance  of  the  recii)rocity  treaty  the  flour  trade,  as  well  as  a 
great  many  other  branches  of  which  Mr.  Stewart  will  speak  (because  he 
is  thoroughly  fa/niliar  with  the  matter),  has  advanc^jd.  This  tnide  with 
Brazil  dates  back  eighty  or  ninety  years.  Our  representative  in  Rio 
produced  a  letter  from  our  minister,  Mr.  Thomas  L.  Thompson,  a  copy 
of  which  I  have  and  will  leaver  with  you  after  reading  it. 
The  letter  was  read,  as  follows: 

We  beg  respectfully  to  call  your  attention  to  the  radical  changes  which  have  been 
enacted  recently  by  the  Brazilian  Government  in  the  matter  of  the  relative  position 
of  wlieat  and  wheat  flour  in  i  ■.••  new  tarit!'.  Wliile  the  import  duty  on  the  latter  was 
raised  from  24  rcis  to  32  reis  per  kilo,  wheat,  which  under  the  old  tarift'  paid  an  expe- 
dii  nte  tax  of  Id  per  ceiit,  ban  been  made  entirely  free.  This  in  itself  is  a  heavy  blow 
to  the  American  shipping  and  mi'lini^  interests,  which  for  many  years  past  have  sup- 
jtlied  the  Brazilian  marliets  witli  (lour  and  have  invested  millions  of  capital,  both  in 
th(^  construction  of  ni'lls  of  the  nnmt  .'ipi)ioved  pattern  for  the  manufacture  of  flour 
suitable  for  this  i'lim;iic  and  in  a  large  fleet  of  American  ships  trading  between  this 
port  and  Baltimore,  which  depends  almost  exclusively  upon  flour  to  supply  their 
outward  cargoes,  carrying  home  cottce. 

In  addition  to  tlie  above  disparity,  we  jnst  learn  of  what  we  can  not  term  anything 
but  a  most  startlirig  injustice,  which,  if  continued,  will  utterly  annihilate  the  already 
struggling  flour  trade  i)ot  ween  the  United  States  and  Brazil.  We  refer  to  dilTtr(>ntiai 
freight  rut(is  wbicn  liave  been  granted  by  the  Goverunu^nt  railroads  to  flour  ground 
here  over  ibreign  grv)und  flour.  We  mention  as  an  instance  that  the  rate  on  foreign 
flour  from  Rio  to  Cba})eo  dc  ITvas,  a  station  on  the  Cl.mtral  Railroad,  is  242  reis  per 
10  kilos,  while  flour  milled  here  pays  only  71  reis  per  10  kilos.  As  w«  are  largely 
dependent  on  interior  point.s  for  a  market  for  our  Amorican  flour,  it  is  obvious  that 
under  these  conditions  competition  becomes  imiositibia. 


STATEMENT  OF  MR.  0.  MORTOH  STEWART,  OF  BALTIMORE. 


the 


Mr.  Chairman  and  (iEntlemen  of  the  Committee:  When  the 
proclamation  of  this  treaty  was  made,  wo  got  from  Brazil  ,*  100,000,000 
of  their  produce,  mainly  rubber  and  coflee,  and  they  got  from  us  in  the 
way  of  food  supi)lics  and  other  articles,  about  $10,000,000  in  valne. 
They  collect  their  revi'nue  mainly  ujton  export  duties,  which  average 
about  10  per  cent,  and  conse  piently  they  derive  far  more  traflic  from 
us  than  we  do  from  then).  This  lex  talionis  could  be  very  powerfully 
used  by  thenj  for  the  benefit  of  their  trade,  if  it  were  necessary;  bnt 
theie  is  no  such  feeling  among  them,  because  we  have  noticed  in  the 
last  two  or  three  yc^ars,  which  have  been  uninferrni)ted  by  revohi- 
tions,  a  great  sympathy  in  our  favor.  That  territory  is  8,(KK),(»iK>  sijuaie 
miles  in  extent,  and  our  territory  is  3,3(K),0<!0  miles  in  extent.  Tlie  great 
llepublic  of  the  Northern  Hemisphere  is  in  symjiathy  with  the  great 
Kepublic  of  the  Southern  llcniispliere,  and  consetjueutly  there  is  every 
logical  reason  to  think  that  that  which  started  so  well  would  have  gone 
on  iiulelinitely  until  there  wouhl  have  been  a  comm<  "ial  association 
jind  unity  that  would  have  bound  iis  close,  to  the  Brazilian  peo|»le. 
There  ia  iio  doubt  about  it.    Some  people  stiy,  "Why  in  the  worRl  don't 


270 


RECIPROCITY    STATEMENTS. 


our  mauufactures  go  down  there  to  a  larger  extent?"  The  reason  is 
obvious.  The  $1K),00(>,00()  vre  paid  them  lias  to  be  paid  through  English 
credits. 

I  was  traveling  from  Peruambuco  down  to  Bahia  on  board  a  vessel 
with  a  gentleman  named  Taylor,  who  was  a  man  of  charming  literary 
taste,  lie  could  rei)eat  nearly  everything  that  I  suggested  from  the 
works  of  Sir  Walter  Scott,  and  I  said  to  him,  "How  is  it  that  you,  a 
business  man,  can  find  time  to  memorize  so  perfectly  the  works  of  that 
great  author'^'  lie  replied  that  he  had  ])lenty  of  time,  being  the  super- 
visor of  credits  of  the  Dugan  Company,  of  Dundee,  and  stated  that 
they  always  had  a  balance  in  their  favor  of  at  least  $1,500,000. 

There  is  another  thing.  When  slavery  existed  in  Brazil,  it  was  the 
duty,  as  well  as  the  interest,  of  the  planters  to  take  care  of  their  slave 
labor,  and  they  raised  hogs  for  ft)od  to  an  enormous  extent.  There  is 
no  better  bacon  than  the  iirazilian  bacon,  and  it  is  quite  suitable  for  that 
purpose;  but  when  slavery  was  abolished,  their  freedmen  being  their 
laboi',  hogs  became  what  might  be  called  nomads,  as  well  as  the  freedmen 
themselves,  and  consequently  the  State  of  Illinois  and  the  Western 
country  are  now  seeking  that  trade.  i\rmonr  has  sent  there  Mr.  Boss, 
a  man  of  very  great  ability,  to  explore  that  country,  and  he  has  come 
lunne  aiid  says  that  he  not  only  expects  to  continue  tlio  trade  there,  but 
to  have  a  much  more  nrogrcssive  one. 

America  uses  Hour  to  the  extent  of  1  barrel  ])er  year  to  every  man, 
woman,  and  child,  so  that  we  consume  ()i,000,OlM)  barrels  of  Hour.  In 
Brazil,  on  the  contrary,  they  uo  not  use  more  than  1,000,000  barrels, 
although  their  pojmlation  is  about  1(5,000,000  ])eopl  ,  .ii't'oiding  to  the 
best  ('cnsus  they  have.  There  is  no  doubt  that  everything  tends  toward 
an  iiumense  increase  in  the  consumption  of  flour,  Ijccause  the  price  is  so 
low  that  it  eoi>\es  in  cenipctitioii  with  tb'"'"  ov/n  native  i)roduet  to  su<'h 
an  extent  that  where\er  you  go — in  Hahia  Bio,  Santos,  and  Bio  CJrande, 
or  elsewhere — you  find  the  consumption  of  flour  is  increasing.  That  is 
also  the  (;ase  at  Victoria.  At  the  latter  i)lace  last  jeartliey  consumed 
18,00(t  barrels. 

There  is  nothing  more  forme  to  tiiiy,  excejjt  that  when  the  proclama- 
tion was  made  we  looked  upon  it  as  the  dawn  of  a  much  better  day. 
When  the  revolution  wax  n  progre'ss,  we  knew  that  England  was  anx- 
ious for  the  rexjognition  of  the  monarchical  party,  which  was  opposed 
entirely  to  the  ;<ympatl)ies  of  those  people.  We  knew  that  Austria 
hi'd  proclaimed  the  samo  fact,  and  thai  I'^raiice  was  in  fiivor  of  the  rec- 
ognition of  the  Orleans  branch  an,i  had  ]uactically  said  so.  America 
stoo«l  alone.  It  happened,  very  unfort  unalely  for  us,  that  the  Adminis- 
tration determined  to  abrogate  this  treaty,  owing  to  the  application  of 
tlie  sugar  question  in  tl:e  Wilson  bill.  !  therefore  say  thai,  looking 
forward  to  thr*  future,  being  govei'ued  by  the  ligiit  of  the  past,  I  think 
that  reel;  rocity  is  the  only  way  bv  vh..  h  we  can  overcoriie  tie  machi- 
nations of  the  Iljiglish  people,  who  are  establishing  mills  and  gettitig 
dilferential  freights  to  the  interior.  I  lock,  in<;identally,  to  the  railroads 
there  heing  linally  iiiihued  with  the  si)irit  of  American  enterprise. 

The  t>P AIRMAN.  Will  30U  state  to  the  (jonimittee,  so  that  we  can 
have  it  before  us,  what  interest  you  represent  that  is  atlected  by  the 
repeal  of  the  recliuncity  claus<^  of  the  law  of  ISOO? 

-Mr.  Stewart.  It  is  my  own  interest.  1  own  six  vessels,  and  1  am 
building  another. 

The  Chairman.  The  vessels  trading  between  what  ports? 

Mr,  SiKWiRT.  Bel  ween  lialtiuiore  and  Xiio,  Santos^  Bernambuco, 
and  Bahia. 


RECIPROCITY    STATEMENTS. 


271 


M' 


ran 

'lie 

am 


luco, 


The  Chairman.  What  goods  do  you  transport  from  this  country  to 
Brazil,  and  from  Brazil  in  return? 

Mr.  Stewart.  Flour  and  provisions — in-ovisions  eominy  from  the 
West  and  from  Baltimore,  and  also  cottonseed  oil  and  the  food  prod- 
ucts of  tlie  whole  country. 

The  Chairman.  What  extent  of  territory  in  this  country  do  these 
products  represent? 

Mr.  Stewart.  From  Cliicago  come  the  provisions,  and  from  the 
Chesajteake  Bay  and  Eichmond,  as  well  as  Harrisburg  and  other 
places,  flour.  The  Argentina  flour  grows  with  no  fibrous  strength. 
In  Pennsylvania,  Virginia,  and  in  fact  all  iron  countries,  the  wheat  is 
celebrated  for  its  keeping  qualities.  They  gave  it  a  certain  name  sixty- 
flve  years  ago.  which  is  still  celebrated,  and  it  is  still  demanded,  nuu-h 
to  our  confusion,  because,  having  this  sjjecial  demaiui  name,  they  charge 
a  premium  for  gratifying  this  antit}ue  taste. 

The  Chairman.  What  was  your  trade  iu  1892  and  1893  as  compared 
with  1804  and  1805? 

Mr.  Stew^ART.  The  shipnuMits  from  the  United  States  in  1800  were 
672,320  barrels;  in  IdOl,  705,902;  in  1802,  under  re(ii)rocity,  015,;;05 
barrels,  aii  increase  of  20  per  cent;  in  1803,  001,804  barrels;  in  1891, 
930,141  barrels:  in  1895,  842,955  barrels;  and  now  all  these  vessels  in 
which  Mr.  Levering  is  joined  with  us  are  standing  idle  at  the  wharves. 
I  pay  a  tribute  of  giatitude  to  the  American  Government  with  ])ecnliai' 
feelii  g,  owing  to  the  circumstances  tliat  wo  received  protection  which 
enabled  us  to  build  our  vessels  of  proper  size  instead  of  making  them 
yachts.  We  could  use  them  as  yachts,  but  we  do  not  care  to  do  it 
Just  now. 

Mr.  Levering.  The  wheat  was  higher  than  it  is  now.     While  tlie 
nund)er  of  bairels  increased  the  price  was  lower,  so  do  not  be  mis 
guided  by  statements  in  dollars  and  cents.    A  barrel  of  flour  is  a 
barrel  of  flouj-. 

INIr.  Stewart.  I  can  bring  Mr.  Armour  from  the  West,  the  Pennsyl- 
vania ndllers  and  others,  to  give  you  information  upon  these  points. 

The  Chairman.  We  have  sent  notices  to  those  gentlemen,  and  will 
have  representatives  of  those  firms  before  us. 

Mr.  Stewart.  Mr.  Ross  is  one  of  the  most  representative  men  1 
have  ever  seen. 

The  Chairman.  You  speak  of  wheat  of  the  Aigentine  Hepublic 
connng  into  competition  with  ours.  Please  state  that  so  wo  may 
understand  it. 

Mr.  Stewart.  I  have  been  consul  of  Argentina  ever  .since  I  was  a 
boy.  In  those  days  they  devoted  themselves  ])articularly  to  grazing 
and  the  cattle  trade.  It  has  only  been  lately,  in  the  last  ten  years, 
thiit  the  northern  districts  have  connnenced  to  look  u|)on  wheat  as  a 
desirabh'  crop.  This  year  it  was  neaily  a  total  failure.  J^ast  year 
there  was  a  superabundanci',  but  of  a  low  price,  and  1  do  not  see  lunv 
they  (;an  do  very  well  in  if.  Tlie  railroads  in  South  Amciica  are  owni'd 
by  English  capital  more  than  they  are  in  this  country.  In  this  country 
Englisli  capital  controls  the  [)()nded  interest,  but  the  e(|uity  of  redemp 
tion  is  in  the  American  people,  while  in  Soufh  America  the  English  not 
only  hold  the  bonded  interest,  but  they  have  an  equity  of  re(lem()tion 
aiul  a  conse(iuent  right  of  control.  It  is  that  feature  that  Mr.  Levi'ring 
has  very  admirably  placed  before  you  in  the  protest  which  he  has  placed 
in  your  hands. 

The  Chairman.  One  of  the  complaints  made  by  thr  millers  of  this 
country  is  that  since  the  repeal  of  the  reciprocity  clause  a  large  duty 


-^  ^1 


%i-  ~i 


•t 


272 


RECIPROCITY    STATEMENTS. 


lias  been  placerl  upon  American  flour  entering  Brazil,  anrl,  as  you 
state,  the  wheat  is  admitted  tliere  free  from  Arj;-  Mitina ;  the  Hour  mills 
of  Brazil  are  owned  by  foreign  capital  largely,  and,  in  a<ldition,  the 
Engl'sh  railroads  give  discriminating  rates  in  favor  of  the  transporta- 
tion of  flour  manufactured  by  these  British  mill  ■,  as  against  the  flour 
imported  from  America. 

Mr.  Levering.  That  is  true.  This  is  the  last  vestige  of  the  regular 
American  mercliant  marine  doing  business  with  that  country. 

Mr.  Stewart.  I  think  you  oughlj  to  say  of  a  certain  degree  of  excel- 
lence, owing  to  the  fact  that  they  are  the  vehicles  lor  perishable  cargo. 
We  hav'>  never  had  in  ten  years  any  marine  rejections,  ^'hereas  when 
we  are  obliged  to  charter  we  have  personal  reclamations.  We  are 
obliged  in  our  own  business  to  secure  vessels  of  standard  excellence. 

Mr.  Levkking.  Flour  represents  75  per  cent  of  the  cargo.  Blot 
that  out,  and  the  vessels  have  got  to  be  sold. 

The  Chairman.  In  order  to  protect  American  interests  in  the  trade 
in  Brazil,  you  think  it  is  important  not  only  to  have  this  reciju-ocity 
clause  restored  which  we  had  under  the  law  of  1890,  but  to  have  it 
extended  so  that  American  products  after  they  reach  Brazil  shall  be 
treated  as  fairly  as  the  domestic  flour  or  any  other  product? 

Mr.  Stewart.  You  have  stated  it  better  than  I  possibly  could. 

The  Chairman.  Can  you  give  the  committee,  in  dollars  and  cents, 
the  actual  anumnt  of  the  trade  that  you  carry  from  this  country? 

Mr.  Stewart.  Last  year  our  individual  shipments  were  $1,GUO,000, 
being  over  £300,000. 

The  Chairman.  How  much  has  the  trade  fallen  off  since  the  repeal 
of  the  reciprocity  clause? 

Ml'.  Levering.  Do  not  foiget  the  point  of  the  terrible  decline  in 
prices  lasu  year.  There  might  bean  increase  in  the  exports,  whereas 
in  dollars  and  cents  there  might  be  a  decrease. 

Mr.  Stewart.  The  average  price  of  flour  previous  to  last  year  was 
from  $4  to  $4.50,  and  since  that  the  price  has  been  from  $2.85  up  to 
$3.70.  Provisions  have  been  lower  in  about  the  same  ratio  to  the 
euornu)us  crop  of  corn  in  this  country.  We  had  2,500,000,000  bushels 
of  corn,  an  unprecedentc  1  crop.  In  its  convertible  quality  as  human 
and  aniiual  food  it  rej)resents  the  greatest  crop  over  known  in  this 
world,  in  a  monetary  point  of  view. 

We  would  like  to  know  whether  you  desire  us  to  supplement  our 
statements  by  any  written  ones. 

The  CiiA^iRMAN.  We  would  be  very  glad  for  you  to  do  so.  These 
hearings  will  be  printed  for  the  benefit  of  the  House  and  the  country. 


STATEMENT  OP  CHARLES  A,  COTTERILL,  REPRESENTING  PARKE, 
DAVIS  &  CO.,  MANUFACTURING  CHEMISTS,  DETROIT,  MICH. 


Mr.  Chairman  and  Gentlemen  of  the  Committee:  I  desire  to 
say  that  I  will  consume  as  little  of  your  time  as  possible.  I  Inive  here 
:j.  tew  statements  in  regard  to  our  business,  which  I  would  like  to  read 
and  liave  in(;orporated  as  a  pari;  of  my  remarks. 

The  pa^^er  was  read,  as  foUovrs: 

1.  Q.  G've  full  name  aud  address  of  Tm  or  company. — 1.  A.  P'w''*  DivIb&Co., 
Detroit,  Mi(^h.,  with  hraucti  liouses  at  l\^^\v  York  City,  Kansas  (  i  .  Is  ■  „  -<»,  aud 
Now  Or)t<iui8j  aiid  branch  factorioB  at  Wjl'iorviile,  Oatar'f,  '^  r-iidft,  uud  >  ,u<\od, 
Fnglaud. 


RECIPROCITY   STATEMENTS. 


273 


These 

I II  try. 


[swe  to 
,e  here 
read 


|9»&C0., 

<ndoD, 


2.  Q.  IiiiiP8  of  inannfnctnro. — 2.  A.  As  inannfiu'turing  clioiiiists  wo  niannnictiiro  n 
lino  of  fluid  ami  Holid  oxtiiiots,  in  the  nianiifiu'luro  of  wliich  a  {Jircat  deal  of  alcoliol 
is  used,  siif^ar  and  jj;()latin  coated  ])illH,  niodicinal  elixirs,  sirujjs  and  wines,  coin- 
pressed  medicinal  tablets  and  tablet  triturates,  medicated  Iozcmij^cs,  oleates,  and 
j^clatiu  eapsM  U's  con  tain  in  <:;  medicinal  substances.  \\v,  are  also  compressors  of  botan- 
ical drni^s,  such  as  lierbs,  leaves,  liowers.  barks,  and  roots,  for  dnijj;^ists' use.  Wo 
also  m.inufactnre  malt  extracts,  digestive  ferments,  and  a  line  of  otber  ])liarmacen- 
tii'al  })id(iucts  too  nnmerons  to  mention. 

'A.  ().  riie  amount  of  capital,  number  of  persons  employed,  and  value  of  annnal 
product.—:?.  A.  'I'lic  capital  stock  of  the  corporation  is  .t-'.oijD.dOO;  $],'_>(M).0()0  iiaid  in. 
The  number  of  omydoycies  varies,  with  an  average  of  about  i.L'OO.  '1  lie  value  of  the 
annual  jtroduct  wliich  is  bandied  from  year  to  vear,  with  sales  during  W.)5,  amounts 
to  over  $2,()v)0,000. 

4.  Q.  Do  yon  lind  yonr  market  at  home  or  abroad;  and  if  both,  in  what  prr)])or- 
tionf— 4.  A.  We  find  our  market  both  at  home  and  abroad,  prim  ipally,  of  c(Mirs<^,  at 
home.     About  121  ])er  cent  of  tiie  total  sales  ar<!  made  abroad. 

.'').  Q.  Do  you  sell  directly  to  foreign  deabu's  or  through  commission  houses? — o.  A. 
We  sell  directly  to  foreign  dealers;  very  seldom  sell  through  commission  hoiises, 
but  have  established  agencies  in  Australia,  (iermany.  Austria.  Belgium,  Italy,  and 
Switzerland,  with  large  sn]>i>lv  depots  with  wholesale  druggists  in  the  Hawaiian 
Islands,  Cubn,  I  nina,  etc.,  a  i)art  of  which  are  supiilied  either  directly  from  the 
home  ollice  at  Detroit,  Mich.,  or  through  the  br.i.'ich  house  at  London,  England. 

6.  Q.  Have  you  niiule  any  direct  ell'ort  to  ext-iid  your  foreign  trade;  and  if  so,  bj' 
what  means,  and  with  what  snccc'ss,  and  in  what  countries* — 0.  A.  We  have  made 
direct  cfibrts  to  extend  our  foreign  trade,  lirst,  through  the  direct  efforts  of  branch 
laboratories  in  Canada  and  in  ICiigland ;  also  through  agents  in  the  countries  above 
naiiKMl,  while  a  niimbcu'of  traveling  representatives  are  looking  out  for  our  interests 
in  Australia  iind  India,  while  a  8p<H'ial  nqiresentative  from  time  to  time  visits  tlio 
agencies  in  Enroi»e,  and  olV  and  on  a  spcfcial  roinesentative  makes  the  round  of  the 
globe,  looking  after  onr  interests  in  all  far-away  countries. 

We  also  cultivate  trade  abroad  through  the  issuing  of  ])rice  lists  applicable  to 
difleront  foreign  countries,  descriptive  catalogues,  circulars,  samples,  etc.  How 
successful  we  have  lieen  in  the  introduction  of  these  products  is  shown  by  tlie  coni- 
])arative  statement  given  later  on  with  reference  to  the  increase  in  the  sales  abroad 
during  the  last  six  years,  which  increased  from  4A  to  12i  per  cent. 

7.  ().  Are  you  aware  of  any  disciiminat'on  or  obstacles  in  the  laws  or  customs 
regulations  of  any  foreign  country  that  has  restricted  or  prevented  the  exteiisi(m  of 
your  trade;  and  if  so,  can  you  suggest  any  means  by  which  they  may  be  removed  if — 
7.  A.  A  flagrant  discrimination  has  come  to  our  attention  lately  through  the  de<'i- 
sion  arrived  at  by  the  Anstri;in  customs  authorities  in  classifying  certain  of  onr 
])iodncts,  into  the  manufacture  of  which  alcohol  enters,  among  either  gums  and 
resins,  or  arrack,  brandy,  liquors,  etc.,  even  if  used  for  medicin,  l  piirjjoses.  On 
account  of  the  fact  tliat  whisky,  brandy,  etc.,  are  once  in  a  while  nsed  for  medicinal 
jnirposes  onr  medicinal  fluid  extracts,  for  instai.  t^,  have  betn  classed  in  Austria 
under  this  heading,  and  iire  made  subject  to  a  duty  of  60  florins  gold  per  100  kilos 
gross  weight  when  introduced  into  Anstria  or  Hungary.  There  is  in  the  Austri.in 
tariff  laws  a  ])rovision  for  medicinal  preparations  that  are  rated  at  24  florins  gold 
l»er  100  kilos  gross,  iind  under  which  heailing,  according  to  our  ideas,  the  fluid 
extracts  and  similar  alcoholic  preparations  should  be  classed.  Without  taking  into 
consideration  the  fact  tli.it  we  are,  under  the  circumstances,  almost  obliged  to  use 
alcohol  on  which  a  tax  or  duty  has  to  be  paid,  avo  are  at  a  great  disjidviintago  in 
comi>eting  with  Austrian,  (ierimin.  iMid  other  manufacturers,  who  work  with  free 
alcohol  when  used  for  medicinal  ])iirpose8.  Sixty  florins  gold  iicr  100  kilos  gross 
means  about  120  florins  gold  ])er  100  kilos,  or  about  220  pounds  net,  and  this  duty  is 
considered  by  lis  excessive,  and  it  is  certainly  an  obstacle  to  the  successful  introduc- 
tion of  our  iiroilucts  into  Anstria-llnngary.  In  other  cases  we  meet  with  similar 
obstacles  on  account  of  the  use  of  tax  or  duty  paid  alcohol,  especially  when  duty 
ad  valorem  is  levied. 

While  provisions  have  been  made  for  the  rep.ayment  of  duty  paid  on  imjiorted 
alcohol  nsed  in  the  manufacture  of  these  ])rodncts,  the  conditions  under  whicli  the 
rebate  can  be  obtained  have  been  found  by  ns  so  liurdensome  that  we  have  discon- 
tinued fiiaking  claims  njion  the  (Jovernment  for  the  repayment  of  such  duties  thus 
paid,  while  foreign  manufacturers  of  alcohol,  knowing  that  we  were  obliged  to 
iiiijiort  alcohol  for  such  i)Mrposes  instead  of  using  homemade  alcohol,  acted  more 
or  less  inde])endently  and  charged  high  prices  for  such  alcohol  imported  inti>  our 
country  as  compared  with  the  ]>rices  at  wliich  homemade  iilcohol  could  be])rocured 
it  no  tax  had  to  be  paid  thereon.  We  have  therefore  taken  steps  with  the  repro- 
^iiitatives  for  this  State  in  ('ongr;\ss  and  in  the  Senate,  with  mcmlvers  of  tlm  sub- 
mminittoe  on  Ways  and  Means,  to  have  the  law  amended  so  as  to  allow  us  i>nd 
oilier  houses  in  the  same  i»osition  to  u^3  homomude  alcohol  for  the  tnanufacture  of 

H.  Rep.  2203 18 


274 


RECIPKOOITY   STAT'CMENTS. 


nic<liriiial  prortnctH  in  the  maiinfjirtiiro  of  wliicli  alcohol  ia  usod  whon  exported,  so 
ii8  to  ohtiiin  the  (Iriiwhack  on  Mm  tax  jiaid  on  alcohol  when  used  j'or  Huch  ])ur|ioscs. 
Solium  of  these  ohstaclcs  have  hctui  overcome  thi'ouffh  the  establisliiiient  of  a  hraneh 
lal)oratory  in  Canada,  ami  in  lMi;;land,  thoiij;h  sncli  lahoratoiicH  have  been  estah- 
liHhed  at  };ieiit  oxiiense  anil  which  matriialiy  decrea  s  the  piotits  ina<le  upon  goods 
thus  manufactured  on  tlio  smaller  scale,  as  lar  as  tin  'reign  trade,  according  to  tho 
])ercentag«  ropreseiitcd  in  this  report,  is  coin]iarod  w.  Ii  the  sales  of  our  products  in 


this 


country. 


A  further  discrimination  is  felt  hy  us  and  obstacles  are  put  in  our  way  in  thonian- 
ufacture  of  certain  of  our  products  into  the  com])osition  of  wliich  there  enter  chemi- 
cals which  haveto  he  imjioited,  ]>rincip!illy  from  (iermany.  Thesoohstacles  ar<!  (caused 
l)y  the  |)ccnliar  laws  of  this  country.  VVe  will  give  an  exani]de.  tliough  wo.  can  not 
vouch  for  the  exactness  of  the  figures  giveu,  as  the  time  since  the  communication  of 
March  J,  as  issued  hy  the  Committee  on  Ways  and  Means,  reaches  us  and  tho  time 
in  w  hich  a  reply  is  expected  is  so  short.  \V(!  will  (|in)te  tho  article  sul]dioual  as  an 
oxamphi  of  this  class.  Whih!  originally  there  was  only  one  concern  of  maunfactur- 
ing  chemists  in  (ieruumy  who  ))nt  this  new  medicinally  valuahle  product  njion  the 
ni.arket,  in  course  of  time  two  or  three  nu)ro  mfinulacturiug  conci-rns  discovered  dif- 
ferent ways  hy  wliich  they  obtained  tho  same  results,  nainely,  ])roduce(l  the  same 
]iroduct.  'I'hough  three  or  four  j)rocesses  for  tlio  manufacture  of  tho  jjroduc^t  were 
])atent<'d,  a  healthy  compc't  ition  was  caused  and  the  price  of  tin*  i)roduct  was  greatly 
reduced,  and  it  was  made  available  to  the  druggists  and  physicians  for  the  treatment 
of  disi^iscat  reasonable  ])ricos.  The  nuinufai'tnrers  of  course  hxdced  for  a  large  out- 
put, of  this  j)roduct  to  the  United  States,  and  linding  that  our  laws  were  favorahlo 
to  them,  tliough  unfavorable  to  us,  they  formtsd  a  trust,  took  out  ])atents  for  the 
manufacture  of  siili)honal,  trade-markeil  the  name  "sulplional"  in  this  country  and 
protected  the  pro<lnct  its(df  by  ])atent,  cstablisln^d  .an  agency  in  this  country,  and, 
so  to  s]ieak,  put  on  the  scniws,  which  means  that  while  the  article  could  hav(!  been 
bought  in  ICurope  at  about  2.")  cents  ])(ir  ounce,  mauulacturers  were  obliged  in  this 
<u)uutry  to  ])ay  about  $\.'20  ])er  ounce  for  tho  same  article.  As  soon  as  other  manu- 
facturers in  l'',uro])e  found  ways  and  means  bv  whicli  to  manufacttnre  the  same  prod- 
uct by  dilferent  j)roc(;sses,  the  juici-  ))aid  was  further  reduced;  but  as  tho  name  was 
protected  by  tmde-mark  in  this  c<  .iutry,  as  th(^  ]iroccss  for  its  manufacture  and  tho 
]>roduct  itself  was  jjatemcd,  the  original  syTidicate  or  trust  had  their  own  way  and 
th(i  juice  i>\'  the  iirtide  has  not,  at  least  not  materially,  (iecreased  of  late  years,  and 
American  mannfaciurers  are  obliged  to  ])ay  tribute  to  tho  side  agents  in  this  coun- 
try for  the  foreign  manufactures  auii  .'uilirectly  to  the  foreign  numulacturers  them 
selves.  A  like  state  of  allairs  exists  witli  reference  to  anti])yiine,  ])henaictine,  and 
«th»!r  similar  products.  On  the  other  hand,  these  same  prodncts  t  iw  lie  purchased 
and  used  in  Canada,  for  instr  e,  at  inuidi  lower  rates,  and  if  tlu  \  enter  into  the 
com|)osition  of  any  jiroduct  w  leh  is  needed  for  export,  it  will  nc'-essitatw,  in  order 
to  be  able  to  compete  at  all,  th.ii  these  ))rodncts  bi^  made  in  the  l»omiiiian  of  Car'.ida, 
where  the  laws  are  more  favorable  to  competitiot'  in  the  markets  ol  ihe  world.  On 
the  other  hand,  cases  have  (von  reported  where  i  iiese  ])roilncts  have  lieeii  snuiguled 
from  Canada  ii'.to  the  I  i  ted  States,  and  certain  unscrupulous  parties  have  been 
able  to  obtain  the  .irtiles  at  hiwe;- rates  than  we  have  been  obliyfcil  to  ]>ny  to  the 
agents  of  th*<  loreigi  .  nufai  tnrers,  ami  prices  h;»ve  lieen  so  n  (lnc(>il  that  all  mav- 
gin  of  proiii  to  us  "•  is  >'liniiii:it.ed,  while  the  uusi  upuious  ivirues  referrtil  to  were 
able  to  ir  ike  a  ^■•■"»lit,  even  if  they  were  ro  seJ-  tiie  pr<KbK-ls  at  our  c»'st  prices. 
There  exM..  theri«*>re,  obstacles  in  our  laws  wht^  h  do  n»»»  tenable  us  to  i'<\tiipci,e  suc- 
cessfully* with  th»)  Dominion  of  Canada,  for  instance,  ^Vixb  is  so  near  to  our  doors. 

K.  Q.  ^A'hAt  wbanges  kjive  re<'Kntly  occurre«l  in  tho  t~iritf  of  foreign  counUiea,  so 
far  as  ihe>  •*'  uSe  to  y*mir  linos  of  mannfactun't^8.  A.  We  have  not  given  much 
eonsi'Cf^atJMii  wtliis  i-i^iestiou,  in  so  far  as  we  leave  the  selling  of  the  produi-t*  f^r- 
iiisheM  In-  it«»  ewtirely  w  the  judjiiiuuit  of  our  l)ranch  houses  and  to  oui-  agent*,  the 
lattes  pi:iTha»hig  onr  gootls  gc^ierally  free  «.  .  board  New  York  and  establish  rlieir 
owii  -.tdlmt:  prices,  in  harriiony  with  the  tarriis  existing  in  their  count i-i«>.  The  only 
eh:i.ige  That  h.'is  oceuri»<i  is  the  one  to  winch  we  have  referred  in  tW  above,  viz. 
the  ehtadishnusnt  of  a  <iuty  of  (U*  llorins  old.  per  1(10  kilos,  gi-«ss,  t«»r  products  ol 
our  nuiMi  lacture  in  the  preparation  of  «  inch  alcohol  is  used,  ami  which  articles  in 
tlie  !ini>ln-d  state  eoniaji  alcohol.  VV>  r.'«#-r  to  this  pMa'ticnlarly  because  il  ^as  been 
bronglr  r.o  our  altentior:  •»)i«ei(ie)illy,  as  (nilows: 

A  sp»"  .a,!  representativ  «>  of  our  hons«*  made  a,  tour  of  Kurope  and  intervk'ned  tho 
•IPMiciffi  at  N'ieniui.  T»  our  surprise  we  hianied  from  Messrs.  (i.  A  1{.  I''rit7„  whole 
MMH  driurgists.  of  Vienna.  Austria,  that  in  .Inly,  IHit.'i.  when  our  r»'i»J'e.s«Mitative  visikni 
ttHsm.  'fn-tain  (jowls  had  not  been  released  frimi  the  custimis  department  which 
liad  lnwn  siiipptl  bv  us  in  March  and  May.  ISiM.  bec;r-!<*'  our  air<'ntH  ret'used  to  )iay 
the  hijfii  iluty  of  Kli  llorins.  gcdd.  per  IOC  kilos,  gross,  iwcauH**  um*^  did  not  think  it 
fair  to  clasHily  sneh  articles  und«r  ''either  gutuH  and  rinMus,"  or  'ritli  arracks,  whis 
kiea,  l)iTdiM%  eto.,  even  is  used  tur  luetlii-inal  puri)oseH.     Ah  they  refuMe<l  to  pay  the 


RECIPROCITY    STATEMENTS. 


275 


><1  tlio 
■vholo- 

;    which 

1(1  )iiiy 

tiiiiik  it 

ks,  Wilis 

pay  the 


duty  which  the  anthorities  thought  it  wine  to  deinancl  the  goods  were  not  taken  out 
of  theeustoin-liouse,  and  through  long  storage  in  such  custoui  h()nset)i(M|uality  oftho 
goddB  has  certainly  not  imitroved,  thougii  it  is  diflicult  to  Htate  to  wiiat  extent  tlie 
quality  has  deteriorated.  Through  the  asniHtanee  of  the  Auicricau  consul  at  Vienna, 
the  Hon.  Max.Judd,  we  succeeded  in  ohtaiuing  at  least  a  decision,  rendc  red  on  August 
2)S,  1  HUB,  l)y  which  the  gocxls  were  detinitcly  classc<l  under  tlie  lieading  ahove  nu^n- 
tioned,  and  were;  made  snhject  to  a  duty  oC  (iO  llorins,  gold,  per  100  kilos,  gross,  and 
which  elassilication  we  consider  au  unjust  <uu). 

9.  ii.  How  tar  would  the  removal  or  reduction  of  customs  duties  imposed  hy  for- 
eign nations  on  the  merchandists  in  which  you  deal  aid  in  the  extension  of  your 
export  trade? — !).  A.  'J'he  reduction  of  (customs  duties  imi>osed  hy  foreign  nations 
ni)on  merchandise  in  which  wa  deal  would  certainly  tend  to  a  great  increase  in  the 
Hale  of  our  ])rodui'ts  in  comjM'tition  with  other  countries,  with  i)articular  reference 
to  (Jerman  manufacturers,  wlio  uiuh'rsell  us  in  all  i)arts  of  the  world.  The  reputa- 
tion of  some  of  these  (icruum  manufacturers  is  no  douht  as  good  as  ours.  They  have 
hecn  estahiishcd  in  liusincss  for  many  nu)r(!  years  than  Anu'tycan  manufacturers  have 
heen,  sonm  heing  known  as  manufactur(;rs  for  hundreds  ol'  years,  and  on  accmiiit  of 
the  rei)Utation  of  the  houses  certainly  no  ])rcssure  can  ho  hroiight  to  hear  upon  our 
custonuas  lo  handle  our  products  in  jirtd'creuce  to  those  issued  hy  such  (ierinan 
houses  at  UMH'h  higher  i)rice8.  Hut  our  luisiuess  heing  a  ])eculiar  one  we  may  not 
feel  this  c(UU[>ctition  as  much  as  other  houses  nniy  feel  it.  The  jiroduiis  \vhi(di  we 
nuinufa(;ture  are  intended  solely  for  usci  in  fiUiug  ])rescriptions  ujion  the  order  of  a 
])hysician  who  is  con\  inccd  that  the  ])roduct8  issued  hy  us  ha\e  snpc^rior  merits,  and 
thcrefoi'c  can  he  sold  in  regular  competition  with  ordinary  articles  of  nuinufacture. 
We  can  ther(!fore  only  rely  ujion  the  genuin''ness  of  the  drugs  em](loyed.  tins  skill 
exercised  in  the  nuinufacture  of  the  pre])aratiouB  thercfi'om  under  a^  uniform  high 
standard  to  ])rove  our  slaudjioint  with  foreign  physicians,  w  Inch  re(|uircs  the  expen- 
diture of  large  anujunts,  through  traveling  representatives.  thr<u!gh  the  dissemina- 
tion of  scientific!  literature,  the  supplying  of  sam]»let«  u>  niedi'^al  men,  so  as  to  give 
them  an  o])]»ortunity  to  convince  themselves  of  the  sirperior  quulitv  of  our  goocls,  so 
that  they  nuiy  ]>r(dcr  our  jjrciiarationB  at  the  higher  pric«?s.  t<>  otiier  goods  issued 
under  the  same  name  hy  the  (icriuan  manufacturers  alluii*'!  to  and  others,  which 
are  sohl  at  nnicli  lower  jiricc^s. 

10.  Q.  What  is  the  output  of  your  estahlishmeut  compjired  .vith  that  of  six  ears 
ago? — 10.  A.  The  outjjut  of  our  estahlishu.ent  during  the  last  six  years,  inclwiing 
Inuru'  and  foreign  trade,  has  increased  al»'  it  70  p'-r  cent.  The  output  in  tihc  carport 
department  has  during  the  same  term  of  mx  years  increased  oiiJy  about  8  per  "-«nt. 

11.  <7.  How  iloes  the  presinit  cost  of  ])roducti«Hi  coni])are  with  that  of  six  years 
iigo,  including  wages,  the  cost  of  raw  material,  .md  tra'i:-"  v  lion  rates  hy  sea  and 
land/  II.  A.  We  can  not  truce  any  material  decre:.  rease  in  the  cost  of 
pnidiiction  rluring  the  six  >  ears.  This  nniy  lie  j)artly  lie  faet  that  we  have 
maiiufiK'tiiifd  in  IS'.);')  on  a  much  lunger  scale  than  we  i  rnrtnl  in  ixXi).  If  to 
the  coBt  of  ])roduction  there  shoiihl  he  added  certain  ■  -.."Iims  connecte  with  the 
introduction  of  the  goods  the  com]iariHon  liecomes  moT"  ditlicult,  because  it  will 
deitend  entirely  upon  the  efforts  made  in  the  direction  ot  iniirease*!  tra  <'liiig  foree, 
inci-eawd  suiipiiesof  j)rinfc<l  matter,  sauijiles.  etc.  Theconr  of  raw  ni;ii>Ti.al  changes 
I'onstantly,  and  the  tendency  is  rather  toward  lower  than  higher  prices.  Trans- 
]»ortatiou  rates  by  sea  or  land  have  not  changed  very  materially,  though  brisker 
mnipetifion  among  railways  and  steamboat  conipanieH  tends  towanl  a  decreased 
expense  in  this  direction. 

12.  i}.  How  do  the  present  selling  prices  compare  with  those  of  six  years  ago?— 
1'2.  A.  The  tendency  18  dei'idedly  downward.  Competition  is  coiisfantly  increasing 
through  the  establishment  of  ikw  hous(!s  in  our  line,  l.ower  prices  and  better  terms 
of  jiayment  ai'c  constant  ly  offered  in  the  strife  lo  secure  trade,  and  it  means  eitlii'l' 
to  n  (luce  (irices  by  an  imicased  rate  of  discount,  if  goods  are  sold  at  a  dis' ount  frol|( 
list  jirices,  or  extension  of  time,  wliich  means  the  same  ihiiii/.  We,  m  our  pusl- 
lion,  however,  may  not  tif]  this  jiressuro  (|uitc  as  niiicli  as  manufaitiircrs  in  entirely 
ditlcrent  lines,  smh  as  the  nianiifactnrcisof  a|ij)lianccH,  instruments,  apparatus,  etc., 
niannfactured  from  such  articles  as  wood,  iron,  eojipcr,  tin,  silver,  etc.,  we  dealing 
more  jiartii-niarly  with  the  jirofes.sious  of  medicine  and  pharmary  and  not  with  trad<! 
generally,  our  articles  not  rcacliing  the  ])ublie  directly,  i)ut  through  the  advice  of 
medical  men,  the  comju^tition  can  not  be  felt  as  ke<'nly. 

in.  (i.  What  competition  do  you  meet  with  from  foreign  manufacturers,  and  in 
what  inarkets?--13.  A.  We  have  referred  to  this  matter  indiicc  tly  before  by  referring 
particularly  to  the  (ierman  market,  though,  as  far  as  the  English  hrauch  is  con- 
crued,  Ave  naturally  feel  the  inlluence  of  Jjiglish  comiiotilors  not  only  as  far  as 
'•reat  IJritain  itself  is  concerned,  but  also  her  colonii'S,  in  which  sym|piitliy  nuturally 
is  in  favor  of  l']nglisli  vi'isus  American  manufactures,  especially  when  jiohtical 
chuids  appear  ujion  the  hori/^n  and  which  Stir  up  the  patriotic  feeling  for  tU« 
jcspcgtivc  i;vuutvics  uud  ayaiusl  Auiorica. 


i 


276 


RECIPROCITY    STATEMENTS. 


14.  Q.  Wliat  advaiita^ies  do  your  foreign  coinpotitors  have  over  you  in  the  cost  of 
niainifai'ture  in  traiisjiortation  chaifffH  to  forei^iu  uiarkotH? — 14.  A.  Tlio  advantaji^cs 
may  in'incipally  lio  in  tlio  cloKcr  jiroxiniity  and  tlio  hettisr  Hhi))i)injH  faciliticH  oxistiiifj 
hotwet'ii  dill'wcnt  niarketH.  ThiiH,  Hliij>iiin<{  facilities  from  Enj^land  to  most  of  Iter 
colonies  aro  far  Itc.ttor  tlian  thoso  lietweeu  Now  Yorl<  an<l  siu'li  coluiiics.  Tho  (icrnian 
niaiiufactiirers  licstir  tlicnisolvcs  to  go  after  forcijiu  trade,  especially  throngli  tjio 
colonial  policy  pursued  by  tlieni.  Foreign  competitors  in  our  line,  as  stated  j)re- 
\  ioiisly,  have  the  advantage  of  employing  free  alcohol,  at  the  rate  of  aliout  'M  ctMits 
per  gallon,  versus  $2.;{(),  or  thertialionts,  ])er  gallon,  which  we  have  to  i)ay  for  alco- 
hol, as  we  do  not  think  it  worth  while  to  take  advantage  of  the  jirovisions  of  the 
law  whi(di  allows  us  to  use  alcohol  of  ioreign  manufacture,  ujion  which  we  pay  a 
duty,  as  above  explained.  There  are,  besides,  such  factors  as  cheaiicr  labor,  (diea]ter 
rents,  cheaiKir  raw  material,  cheajier  metluxls  ol'  living,  that  will  give  certain  foreign 
manufacturers  advantages  over  Auieriean  ones. 

15.  Q.  To  what  extent  can  yon  compett;  with  foreign  nuuuifactMrers  in  (|uiility  and 
price? — 15.  A.  Wecan  certainly  competein(|Uiility,  though  we<'an  nntatt<uui)t  tocom- 
pete  in  prices,  as  ex]»lained  previously,  taking  into  consideration  that  our  line  of 
manufactures  is  a  peculiar  one  and  one  that  can  not  bo  classed  with  general  manu- 
factures. 

16.  Q.  Has  the  total  product  of  the  United  States  in  your  line  (d"  manufacture  in- 
creased or  decreased  during  tin?  last  six  years?— 10.  A.  'I'lic  total  product  of  tins  United 
States  in  our  line  has  certainly  increased  during  th(^  six  years,  but  to  what  extent 
W(!  are  unable  to  say  ■without  looking  up  statistics,  to  which  we  may  ha\e  but 
unsatisfactciry  acci^ss. 

17.  Q.  What  ])roportion  of  the  total  present  aiul  possible  outinit  of  your  lines  of 
manufacture  in  the  United  States  can  be  absorbed  by  the  domestic  market,  and  what 
would  be  your  estimatti  of  your  surplus  for  expcut  if  all  manufacturers  in  your  lino 
were  to  ])io(luce  to  their  full  caji.ti  il\  ?  'I'he  purjKisc!  of  this  nH|uiry  being  to  secure 
as  ac(uirati!  au  estimate  as  possible  as  to  tlie  necessity  for  new  foreign  markets  for 
the  manufacturers  of  the  United  States. — 17.  A.  It  is  im])ossii>le  to  give  a  rei)ly  to  this 
question,  especially  when  the  short  time  allowed  us  is  taken  into  consideration. 

18.  Q.  Was  the  general  elfect  of  the  reciprocity  treaties  made  in  fSilO  favorable  or 
unfavorable  to  the  ex])ort  trade  of  tin;  United  States,  and  what  was  the  effect  of 
their  repeal? — 18.  A.  We  can  not  say  that  in  our  lino  the  etfe<'t  td"  the  p.'issago  of  the 
treaty  or  its  repeal  has  been  nuukedly  noticed,  as  wi- acconnuodate  ourselves  to(!xist- 
iug  circumstances,  whatever  they  nuiy  be,  and  even  if  unfavorable  to  us  make  the 
best  of  them. 

19.  Q.  What  was  the  effect  ujion  farm  products,  particularly  ? — 19.  A.  We  are  not 
interested  in  farm  products  in  a  general  way. 

20.  Q.  Do  yon  favor  the  ai)]dication  of  reciprocity,  particularly  to  future  tariff 
legislation,  and  the  enactment  of  a  gcTii'ral  law  authorizing  the  l*resid«'ut  to  negoti- 
ate recijirocity  treaties  with  l)oth  European  and  .\nuMican  nations,  so  far  as  i)ossi- 
ble  ? — 20.  A.  Our  foreign  ell'orts  have  been  \ery  limited,  notwithstanding  the  fact 
that  in  tlie  United  States  of  America  we  do  by  far  the  largest   business  in  our  line. 

The  reasons  why  we  have  been  unable  to  accom))lish  much  abroad  are  as  follows: 

Our  lines  ol  products  are  based  u])on  the  formulas  of  the  United  States  I'harnui- 
copdia,  while  all  ci\ili/eil  (orcdgn  countries  authorize  the  sale  and  dispeusiug  of  only 
siK'h  products  as  are  liased  u])on  the  pharmacopo'ia  ollicial  with  them.  To  meet  all 
these  refniirenu'uts  would  demand  a  separate  line  id'  products  adapted  to  the  standard 
of  each  I'oicign  country  which  W(!  desired  to  supply,  wi  ich  would  involve  so  large  an 
ox])eTlS(^  as  to  render  the  opi'iation  unprofitable,  with  due  consideration  to  the 
linuted  output  under  any  circumstances. 

Tin;  i)rejudiceH  of  I  ho  iiicdical  profession,  who  an^  our  only  tru(>  client(do.  I'hysi- 
cians  educated  in  foreign  c(dleges  are  taught  to  use  the  pharm.iceutical  products 
which  aro  current  or  po])uIar  or  official  in  siuh  couriMies.  It  takes  a  long  t\mo  to 
change  a  physician's  habits  in  this  re8j)i'ct.  JIc  gets  ac<'UNtomed  to  the  dosage,  the 
stand.ird,  and  tin*  physical  j)ecnliarities  of  the  iduirmaceuticals  thai  ]\ti  has  been 
taught  al  college  ol  by  experience  to  use,  and  hesitates  to  make  a<'hang<'  fnf  /-sactly 
the  same  reasons  that  physicians  taught  to  estimate  weigbts  and  measu/t.^  }li  the 
old  Troy  system  hesitate  to  substitute  therefor  the  metri'^  system. 

Foreign  countries,  with  e8po(dal  reference  to  Franco  and  Austria,  are  very  restrict- 
ive in  their  tariff  as  iigainst  the  admission  of  j>harniacentical8  whi(di  ilo  not  corro- 
sj)oud  in  every  respect  to  their  established  tests,  and  whidi  fire  often  quite  contrary, 
as  well  as  inferior,  to  those  of  our  own  pharnuicopoia. 

Tlie  enormous  tax  on  alcoliol  renders  our  ex)ior(  of  Hle<()(o)ic  products  qnif '  iiiij»rac- 
tii'able  to  .any  great  extent  where  brought  in  compefitioo  wi(h  simil.ir  jirodncts 
abroad.  'I'his  is  the  case  notwithstanding  the  fact  that  f^ertai;)  (irivijeges  with 
regard  to  reliMie  are  givcMi,  because  such  jirivileges  aro  attacJied  to  so  nnnli  rct\  tape 
and  exjienslve  restrictions  that  it  pays  us  not  to  avail  ourselves  of  tliein. 

Summing  up  the  whole  matter,  we  should  say  tiiat  the  extension  of  our  foreign 


I  the  cost,  of 

a»lVilIlt!l,!^('S 

;i('S  oxi.stiii;; 
most  of  litT 
J'lio  (icriiiaii 
iliroiijili  tjio 
stated  i)r»3- 
out  HO  cents 
)iiy  lor  alco- 
sioiis  ot  tlie 
li  we  pay  fv 
)or,  clieajier 
tain  foreign 

(piiility  and 

Mn))t  tnconi- 

oiir  line  of 

lusral  nianii- 

nfaitnro  in- 
f  the  United 
^vhat  extent 
y  liavc   but 

,'oni'  lines  of 
it,  and  what 
in  yonr  lino 
iiji  t(t  socnro 
inaikets  for 
r(!)ily  to  this 
eration, 
I'avorahle  or 
he  eil'ect  of 
ssago  of  tlio 
ves  to<ixist- 
8  make  the 

We  are  not 

uro  tariff 

to  negoti- 

iH  possi- 

g  the  fact 

ftur  line. 

as  follows: 

s  I'hainia- 

Hg  of  only 

o  meet  all 

e. standard 

so  large  an 

On    to  the 

I'hysi- 
jiroducts 
ng  time  to 
losnge,  the 
has  lieen 
I  exactly 
it)  the 

y  restrict- 
not  corro- 
contrary, 

tf  iinprac- 
prodnets 
eges  with 
h  led  tape 

II r  foreign 


RECIPROCITY   STATEMENTS. 


277 


business  has  been  restricted  becanse  of  foreign  standards,  the  teaching  and  the  cns- 
t<inis  of  jdiysjciiins,  the  prejndiees  of  foreigners,  tariff  Icgishition,  and  the  cost  of 
alcohol.  This  statement  ninst  he  taken  in  con  nee  t  ion  with  the  fact  thai  oiir  InisincNs 
is  a  ])eciiliar  one,  and  that  its  siicccsti  is  largi^ly  hased  iijkiii  an  esialdi.slicd  re]iiilalion 
lor  lioncsty  and  integrity.  Jlcre  in  America  that  rcj)iiiation  has  been  estal)lished, 
bnt  ii\  working  abroad  wo  are  com])ell('d  to  combat  the  fact  that  we  are  unknown, 
and  tliei'id'onr  siibjcet  to  suspicion,  esiiecially  as  wo  are  foreigners,  while  on  the 
other  hand  the  native  dealers  havi^  ac(^oin])lished  what  wo  havi',  accomidished  in 
tliis  conntry,  and  stand  almost  iiiipregnal>le  against  a  short  attack.  In  other  words, 
the  only  way  for  ns  to  establish  oiirselvi's  thoroughly  in  any  country  is  to  o|>cn  np  a 
local  manufactory  and  distributing  j)oint,  with  intention  of  lighting  it  oiit^  mi  that 
line  for  years  if  necessary,  nntil  we  have  created  that  conlidence  which  is  absolutely 
essential  to  a  success  in  the  pharmaceutical  business. 

As  to  reitiprocity,  wo  hiivo  been  absolutely  shut  o'.it  for  above  reasons  from  any 
business  of  im))ortance  with  the  8onth  American  States;  but  in  addition  wo  are  com- 
]telled  to  combat  the  fact  that  the  (Germans,  English,  and  French  have  entrenched 
themselves  so  strongly,  linancially  and  commercially,  in  all  the;  ]>rincipal  South 
American  ports  that  it  is  more  than  dilficult  for  an  American  house,  trammeled  by 
the  restrictions  which  I  have  outlined,  to  get  a  foothold.  We  have  tried  it  several 
times,  but  have  only  our  expenditures  to  show  for  our  pains. 

There  is  one  point  to  wliicli  I  want  to  invite  your  attention,  and  that 
is  the  nnju.st  disciiinination  of  Austria- llniijiary  in  rej^ard  to  ])harina- 
centical  prei)arations.  Last  year  we  sent  a  s])e('ial  repiesentative  of 
our  liouse  to  interview  our  ajient,  and  to  his  ^reat  siir[)rise  our  repre- 
sentative found  a  certain  quantity  of  our  j;oods  had  not  been  released 
from  the  eustoin-house,  Jilthoufili  they  were  shipprd  in  Marcli  and  JVlay, 
]S1)4,  because  our  ayent  refused  to  ])ay  00  ih)rins  duty,  as  he  considered 
it  unfair.  They  chissed  our  nuMlicinal  j)iepaiations  as  "edibles,"  which 
was  perfectly  ridicuhms.  An  invcstii^ation  disclosed  tlie  fact  that  they 
had  actually  classed  as  edibles  soineof  the  most  deadly  poisons  known 
to  the  pharinaco])(ii'ia,  such  as  aconiti^  and  henbane,  eitlu'r  of  which 
woidd  kill  a  person  in  a  few  minutes.  They  also  classed  our  ]tharma- 
ceutical  prejtarations  as  whiskies  and  brandies,  and  (thiirficd  a  hij;h 
rate  of  duty,  according?  to  their  taritf  bill,  instead  of  classifying;  them 
as  medicinal  preparations. 

The  CnATRMAN.  The  objetit  was  to  compel  the  American  imjjorter  to 
that  country  to  pay  a  hijiher  rate? 

Mr.  OoTTKRiLL.  Yes,  sir;  to  com])el  ns  to  pay  00  llorins  instead  of 
24,  as  ])rovided  for  under  the  medicinal  schedule.  They  took  the  <;r()und 
that,  be(!ause  alcohol  was  in  them,  they  were  not  medicinal  ])repaia- 
tiotis.  There  is  more  or  less  alcohol  in  all  ])harmaceutical  prei)arations. 
They  would  decay  if  this  were  not  so.  We  <ire  also  absolutely  i»rohil)- 
ited  fiom  introducin}>'  our  goods  into  Fraiu-e  for  the  same  reason. 

The  ('iiAiRMAN.  How  long  has  this  prohibition  existed  in  France? 

Mr.  CoXTERiLi...  It  has  existed  for  yeaivs.  We  have  never  been  able 
to  get  into  France. 

Tlie  Ohaiijman.  IJow  long  has  the  prohibition  in  Austria- Hungary 
existed  by  reason  of  the  coiistnu;tion  of  classiticatiou? 

Mr.  CoTTEiMLL.  For  a  considerable  i)eri()d. 

Mr.  McLaurin.  Do  they  treat  medicines  from  all  other  countries  in 
the  same  way? 

Mr.  CoTTERiLL.  No,  sirj  only  those  from  America.  We  are  handi- 
capped, because  in  Europe  the  manufacturers  are  entitle<l  to  alcohol 
fri'C:  of  duty  or  tax,  and  we  have  to  cr>mpete  against  them  and  pay  a 
tax  npon  f)ur  alcohol. 

The  Chairman.  You  say  that  yon  are  prohibited  from  going  into  the 
markets  of  France.  Are  English  tradesmen  in  the  same  line  of  btisi- 
ness  prohibited  in  tbe  name  way,  or  are  febey  permitted  to  introduce 
tlieir  goods! 


ml 

it 


Bi 


278 


RECIPROCITY    STATKMHNT.S. 


Mr.  ('OTTF'RILT-.  Tlioy  iiro,  for  tlio  siinplo  reason  tliat  the  importer  of 
lCiij;lisli  j-oods  can  allbril  to  j)ay  tlic  lii<;li  duty. 

Mr.  M(!Lauuin.  You  spoke  of  iiu'diciiial  prt^parationa  being  classed 
as  fffxl.  Suppose  tlie  saiiu^  tiling  was  alnpped  lioiu  Kuj^land,  would 
tliey  elass  it  as  food  or  medicine? 

IMr.  CoTTEiMLL,  As  I  understand  it  tliey  would  class  them  as  medi- 
cines ap;ainst  the  l']n<4lish,  Imt  as  foods  aji'ainst  the  Unite<l  States.  It 
is  [jcrfectly  ri<lieulons,  this  discniminatioii.  We  hrouj^ht  the  niatter  to 
the  attention  of  Max  Jndd,  the  American  consul  at  Vienna,  and  he  in 
turn  l)roui;ht  it  to  tlie-  attention  of  tli"  Austrian  (lovernment,  and  they 
simply  maintaine<l  tlieir  position  thai  these  things  were  wines,  whiskies, 
and  edihlea,  and  that  they  should  he  char;>:ed  the  hijjher  rate. 

Mr,  McLAnwiN.  How  (lo  they  Justify  or  evi)Iain  their  position  when 
those  articles  come  in  from  I'^nyland? 

Mr.  (JoTTEiiiLL.  They  do  iu»t  Justify  or  c  plain  them.  Tiiey  ^ive  us 
the  alternative  of  leaviufjf  the  ^oods  to  decay  or  else  i)ayinf>;  the  (!(> 
lU)iins. 

'Die  OiTAiUMAN.  What  is  your  experience  in  the  other  l^iUropean 
countries  ? 

Mr,  (JoTTinifLL.  We  have  not  been  treated  so  badly  in  the  other 
European  (iountries  as  in  Austria,  aiul  France,  Our  products  are  based 
on  the  ITnitcd  States  riiarmacopceia,  whih>  those  in  forci,<;n  countries 
are  based  on  tlu^  ])hai'macoi)(eia  which  is  ol'licial  with  them. 

Section  22  of  the  Wilson  bill  is  the  same  as  existed  in  the  previous 
laws  and  the  McKiidey  bill.  We  can  not  import  alcohol  and  manu- 
facture it  into  i>ro(lucts  intended  foi-  export  without  j^reat  confusion 
ami  layini;'  ourselves  liable  to  a  char<ie  of  frjvud,  because  the  law 
requires  the  identical  alcohol  to  be  used,  and  it  must  be  idi'utilied  on 
the  wharf  before  we  ship  it  out  of  the  (H)untry.  Our  list  contains  thou- 
sands of  dilferent  nuHlieinal  articles,  and  in  order  to  avail  ourselves  of 
that  law  when  we  exjiorted  the  jtroduct  we  would  hav<^  to  sejiarate 
tluMu  ami  state  that  the  pro<lucts  were  made  IVom  domestic  or  lbrri<;n 
alcohol,  as  the  case  mij;htbe,  which  I'cnders  it  imjjossible  for  us  to  avail 
ourselves  of  it.  If  we  were  not  compelled  to  do  that,  we  could  com])ete 
with  the  foreign  manufacturers,  i)art  icularly  the  (Germans.  We  use  the 
best  alcohol  and  pay  $2.20  for  it. 

The  Chaikman.  Can  you  ^o  into  the  (lerman  markets  under  the 
same  condition  as  your  com])etitors  can? 

JMr.  (JoTTEiMi.L.  No,  sir.  They  have  a  great  advantage  over  us. 
Every  pouml  of  lluid  extract  shipped  to  (lermany  represents  so  much 
alcoliol,  tax  paid.  We  have  to  i»ay  tlu^  tax,  whereas  they  have  free 
alcohol.  In  this  matter  we  are  lij;htinft"  on  the  ji'round  of  (pialityand 
superiority  of  preparations.  We  are  basing  all  our  efforts  upon  the 
strength  of  that,  1  liave  spoken  about  the  dilferent  staiulards  in 
respect  to  the  |)harmacop<eia.  We  have  built  up  a  reputation  for  hon- 
esty and  integrity.  There  are  many  manufactures  of  drugs,  but  the 
productions  of  some  are  absolutely  inert.  There  are  too  many  sTU;h 
«»n  the  market. 

The  gentleman  who  preceded  me  spoke  about  tlour.  I  might  say, 
there  is  Hour  and  there  is  Hour.  It  is  a  matter  of  (luality  entirely  in 
(lealing  with  medicines;  the  pur<»st  and  best  ought  always  to  be  pro- 
vided, but  such  is  not  always  the  ease.  We  haveestablislied  a.  labora- 
tory in  (Janada,  across  from  Detroit,  where  we  em])loy  several  hundred 
people.  We  have  also  established  a  laboratory  in  IJngland  in  order  to 
l)aitiailly  nu>,et  foreign  competition.  We  are  transacting  a  business 
there  now  on  a  snudl  scale.    Aluu)st   all  our  shipments  to  Australia 


a 
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RECIPROCITY    STATEMENTS. 


279 


conu'  diiTct  tVoiii  l)»'t.r<)i(;  and  evt'ii  in  Australia  we  \\.i\v.  lo  pay  a 
liciivy  duly,  \vlii(th  coirespondinj^Iy  increases  the  cosl  of  the  j^oods  to 
the  eousuiiicr. 

The  CiiAimiAN.  I'^rauc*'  aud  Austria  arc  tlie  only  coiiutiies  you  have 
to  eoiiteiul  against  in  lMiroj)e.' 

Mv.  CoTTiuiiLi-.  Tliose  arc  the  jjriiicipal  (MM's  we  iiave  to  eontcuHl 
a<;ainst,  and  if  we  ould  only  manufacture  witii  inipoi  led  ah-ohol  with- 
»)ut  so  much  "red  i.ipe,"  we  could  c«)mpete  with  tiu'iu. 

The  ('irAiitMAN.  You  are  uot  si)cakin<;  of  the  internal  revenue  tax 
on  alcohol  in  this  c(»untr3',  but  of  the  impositions  in  fon'i.un  countries  * 

Mr.  (^OTTKIMI  !  .   i'.oth. 

The  CiiAlUMAN,  The  ob.|<<t  of  your  uddrcssinji  the  committee  is  to 
sec  if  there  can  be  any  renu'dy  by  way  of  counnercial  treaties? 

Mr.  (yOTTi:i:iLL.  Yes,  sir.  On  <;('neral  priiu-iples,  we  favor  reci- 
procity, but  so  far  we  have  uot  received  any  benelits  from  it. 

The  Cii  MK'MAN.  l)i<l  you  attempt  to  extend  your  trade  in  South 
Anu-ricau  or  Cuba  under  r(!cii)rocity  ? 

iMr.  (J0TTEU1J>L.  Yes,  sir.     Soon  alter  the  Pan-Ameiiirau  Conj^rcss 
came  to  this  country  1  conducted  iiej^otiitious  with  the  State  Dcpart- 
nii'ut  for  the  i)urpose  of  ;L;rautinj!,'  us  letters  to  a  South  American  chcm 
ist.     We  wanted  a  man  who  uiulerstood  the  language  to  represent  us, 
but  the  experinu'ut  was  an  absolute  failure. 

Mr.  MoliAi'ifiN.  What  countries? 

Mr.  CoTTEtMi.L.  All  of  them. 

The  CiiAiiiMAN.  Why  was  it  a  failure? 

Mr.  CoTTKUiLL.  Jlecausc  the  ilnglish  and  Ciermaus  are  too  strong 
for  us. 

The  Chairman.  Two  conditions  would  favor  you  in  the  extiuisiou  of 
your  trade:  First,  a  treaty  ol'  recij)ro('ity  between  ihe  respei'ti\c  coun- 
tries, 80  that  you  would  be  under  favorable  conditions  as  compared  to 
your  foreijiu  comitetitors? 

]VIr.  Co'J'TERiLL.  That  is  it  exa(;tly. 

The  CiiAiiJMAN.  1  wish  that  you  would  state  to  the  committee  the 
number  of  employees  you  have  in  this  country? 

Mr.  C()TTi;i{iLL.  We  have  about  1,101)  employees  iu  the  United 
States  and  about  /iOt)  iu  Canada  and  luij^land. 

]Mr.  McLaurin.  You  say  you  have  a  laboratory  iu  Canada  and  one 
iu  London.  You  could  ship  j;<)ods  irom  Canaila  to  (lernumy  or  any 
place  else  like  the  Knglish,  I  sui)pose? 

Mr.  CoTTKitiLi..  Xo;  we  can  not.  We  tried  it,  and  found  we  could 
iu)t.     We  met  with  the  same  opposition. 

Mr.  McLaurin.  When  you  siiij)  from  Loiulon? 

Mr.  Co'i'TERiJ.L.  Yes;  from  London;  IxM-ause  we  have  not  become 
established  in  reputation  over  there  as  manufacturers. 

The  Chairman.  What  you  are  seekinji-  to  do  is  to  have  our  Goveru- 
nicnt,  by  reciprocal  trade  relations,  so  arrau.i;e  the  matter  that  you 
can  go  into  those  countries  on  favorable  conditions  without  those 
restrictions? 

Mr.  CoTTERiLL.  Yet.,  sir. 

Mr.  McLaurin.  I  wanted  to  know  the  dillereiice  in  your  English  aiul 
Canadian  laboratories? 

Mr.  CoTTERiEL.  So  loug  as  we  hav^e  not  our  reputation  established, 
Me  will  have  to  go  on  at  great  ex])ense,  and  wait  a  long  time  to  get  a 
fo(jthold.  Our  house  has  an  established  reputation  in  this  country,  aud 
with  the  i)roper  treaty  relations  there  would  be  iio  necessity  for  conduct- 
ing braucU  laboratories. 


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RECIPfiOCITY   STATEMENTS. 


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STATEMENT  OF  MR.  L.  F.  S.  SCHENCK,  OF  MARLBORO,  N.  J.,  REPRE- 
SENTING THE  MONMOUTH  COUNTY  BOARD  OF  AGRICULTURE. 

The  C11AIBMA.N.  Tliis  hearing  will  bo  reported  and  printed.  It  is 
tbe  object  of  the  committee  to  confine  all  persons  appearing  before  us 
exclusively  to  t!K3  subject  of  reciprocity,  us  to  its  etiect  upon  domestic 
trade  and  the  effect  of  the  repeal  of  the  reciprocity  clause  ui)on  our 
foreign  trade,  and  whether  foreign  countries  have  discriminated  against 
our  expoits.  You  are  president  of  the  State  board  of  agriculture  of 
New  Jersey,  and  we  would  be  nuich  pleased  to  hear  you. 

Mr.  Denise.  Mr.  Schenck,  representing  the  Monmouth  County  Board 
of  Agriculture,  has  prepared  a  paper,  and  I  would  be  glad  if  ytu  would 
first  hear  him. 

Mr.  Schenck  read  the  following  paper: 

Gentlemen  of  the  Committee:  We  are  pleased  at  the  gracious 
opportunity  offered  us  as  a  committee  ii])i'.()inted  by  the  M()nnu)utii 
County  Board  of  Agriculture  to  present  to  you  the  resol  iiion  uiiani- 
mously  adopted  at  its  recent  meeting  in  Freeiiohl,  N.  .1,,  anu  to  be  heard 
touching  the  repeal  of  the  reci[u-ocity  treaty  with  Spain,  and  its  effect 
upon  the  ex[)orts  of  Anier.'';an  potatoes  to  Cuba,  especially  from  Mon- 
luouth  County. 

It  is  first  important  to  understand  our  (ijipacity  as  a  potato-growing 
section,  and  then  the  effect  of  (ilosing  ihe  potato  market  in  Cuba  ui)on 
the  business  interests  of  our  county.  ^Ve  are  located  in  the  marl  dis- 
trict. Its  abundant  applii'ation  as  a  fertilizer  for  uiiiny  yefvrs  has  made 
a  fertile  soil,  au(i  adapted  it  especially  for  the  growth  of  potaioes.  Com- 
nuu'cial  fertilizers  are  extensively  used,  furnished  by  ageuis  conveniently 
located,  or  purchased  in  New  \''ork  as  raw  materials,  upon  the  unit  basis, 
by  the  farnu'rs  with  an  intelligence  which  would  do  Justice  to  a  scientist, 
re«lucing  cost  or  waste,  so  necessary,  where  from  5  to  30  tons  yearly, 
costing  from  $iit{)  to  $1,140,  are  used  upon  each  farm.  With  so  large 
an  outlay  at  planting,  it  is  not  only  important  to  increase  the  yield,  but 
to  find  paying  prices.  Our  home  markets  are  IMiihidelphia  and  New 
York,  an(l  tlieir  adjacent  cities.  At  the  harvest,  with  abundant  carry- 
ing facilities  by  rail  and  water,  the  large  shipnuuits  in  two  days,  with 
uo  outlet,  will  block  every  market.  Many  place  on  board  cars  from  40 
to  l-'OO  barrels  daily;  2,  JL'l3  barrels  were  loaded  at  one  station  in  a  single 
day;  7(5,000  barrels  were  shipped  from  Freehold  in  the  slnut  space  of 
three  months;  at  the  same  time  as  many  as  0  carloads  were  shipped 
from  other  stations  daily,  and  the  boats  plying  befweeu  Matawan,  Key- 
port,  Redbank,  and  New  York  were  mnning  loaded  to  their  utmost 
capacity.  Previous  to  August  28,  1804,  such  shipments  were  needed 
to  supply  the  denuind.  Wiien  that  day  potatoes  dropped  .TiO  cents  |)er 
barrel  an  ortler  for  10,000  iu  Freehohl  was  counternumded.     In  18U5 


i 


RECIPKOCITY    STATEMENTS. 


281 


frracious 


there  was  no  outlet,  and  the  nuirket  glutted;  potatoes  dropped  to  (?5 
cents  per  barrel.  The  present  oiler  at  Freehold  is  .iO  cents  per  barrel. 
Why  the  change?  A  duty  has  been  imposed  in  Cuba  ot  $1.20  per 
barrel  upon  American  potatoes  in  retaliation  for  the  duty  ui)on  its  sugar, 
while  English  ])otatoes  are  admitted  tree.  It  is  a  large  tax,  and  lias 
closed  that  market  to  this  country.  Tlia  loss  falls  princii>ally  upon  the 
farmers  and  citizens  of  Monmouth  County,  for  the  reason  that  our  i)ota- 
toes  ripen  and  are  reatly  for  shipment  at  the  very  time  when  they  are 
most  needed  iu  Cuba,  and  command  the  highest  price. 

Farm  values  have  declined  from  $200  to  $70 — aye,  $00  per  acre — with 
no  buyers;  merchants  with  lost  trade  are  waiting  for  the  sale  of  their 
goods  and  collection  of  bills  unpaid;  artisans  are  in  need  of  work,  benev- 
olent collections  are  reduced  to  a  pittance,  and  women  and  children 
asked  to  support  the  church.  It  is  a  condition  of  dissatisfaction  and 
unrest,  and  the  people  are  clamoring  for  better  times.  With  the  potato 
crop  of  New  Jersey  jnarketed  abroad  in  its  season,  our  neighboring 
cities — the  two  best  markets  on  this  continent — will  be  open  the  remain- 
der of  the  year  for  a  supply  from  other  States.  Shall  the  nuirket  in 
Cuba  be  free  ? 

Under  adverse  legislation  we  have  been  driven,  first,  from  our  most 
profitable  grain  market,  now  from  our  best  potato  market,  and  we 
acknowledge,  however  galling  it  nuiy  be,  that  we  are  crippled  in  ])nrse, 
and  that  we  stand  tleeced  like  sheep  ready  for  tlie  shambles.  Amid  this 
hurricane  of  wreck,  we  can  not  remain  unmoved  by  emotion  as  if  it  were 
the  eveniiig  zephyr.  Before  all  is  lost,  we  cry,  "Save,  or  we  perish!" 
May  the  legislator  answer,  "Peace,  be  still"!  I  now  present,  with  tlie 
preamble,  the  resolution : 

Whereas  a  l-.ity  of  $1.20  per  barrel  is  imposed  in  Cnbii  upon  Aniorican  potatooH, 
while  En}j;Ii8h  i  otatoes  are  admitted  fret;,  thereby  practically  closiiij^  the  Cuban 
]>otato  nuirivet  v.o  this  cciiiitry  (he  loss  falling  principally  upon  the  farniers  and 
citizens  of  this  county,  as  the  potatoes  jjrown  hero  are  ready  for  siiipnient  when 
needed  in  Cuba  and  conninind  the  hi.<;hest  price,  allowing  10  i)er  cent  exchange — to 
the  growers  of  1,000  barrels  a  loss  of  -f  1,080,  of  li,000  bairels  $:^,ltiO,  and  so  on,  pro- 
portionate to  the  acreage  and  yield,  amounting  in  the  aggregate  to  nearly  $1,000,000 
yearly— 

liesolved,  Tliat  the  Monmouth  County  Hoard  of  Agriculture,  assembled  at  the 
court  house  in  Kreehohl,  N.  .J,,  knowing  tliat  the  embargo  imposed  by  Spain  in 
Cuba  upon  American  potatoes,  which  is  depriving  us  of  our  best  and  only  niarlitt 
for  the  8ur)»lus,  is  in  retaliation  for  the  tax  ujton  foreign  sugar,  which  promoted  the 
interest  of  the  sugar  trust  at  the  expense  of  (he  American  agriculturist,  we  c;in  but 
characterize  as  a  l»nrning  wrong.  That  we  (ind  no  Just  cause,  neither  can  (iiere  bo 
»ny  good  reason  why  our  citizens  should  lie  deprived  of  a  market  which  is  open  to 
England.  We  tlierefore  most  respectinliy  petition  the  Congress  of  the  United  States 
to  restore  the  reciprocity  treaty  with  Spain,  so  e(iuital>lo  to  all  and  unjust  to  none. 


1  :l 


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f1 


STATEMENT  OF  MR.  D.  D.  DENISE,  PRESIDENT  OF  THE  NEW 
JERSEY  STATE  BOARD  OF  AGRICULTURE. 

Mr.  CiiAiHMAN  AND  CiENTLEMEN:  1  ajjpeared  some  years  ago— I 
think  in  1800,  before  the  Committee  on  Wtiys  and  Means,  when  Mr. 
McKinley  was  chairman — upon  the  tariff  tpiestion,  and  the  committee 
at  that  time  very  kindly  took  intoconsid<Matioii  tliediiims  we  presented, 
and  I  may  say  grante(l  everything  wo  asked,  so  that  we  went  tilong  as 
farmers  quite  swimmingly  for  a  nund)er  of  years;  but,  ha  has  l^ecn  stated 
by  mj  frieml,  when  this  duty  wtis  imposed  ui)ou  our  potatoes  which  we 
shipped  to  ('uba,  of  cour.se  it  came  i»ielty  nearly  wiping  us  out  of 
existeuce,  so  far  as  we  are  financially  concerned. 


1 


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282 


RECIPKOCITY    STATEMENTS. 


Ilfl 


-I 


■;(i  i 


Monmoutli  County,  'S.  .1., ranks  juiionj'-  tin*  lirst  :ij;iicultiiriil  counties 
of  the  United  States.  J  think  tlieic  is  l)ut  one,  ami  tliat  one  in  renn- 
sylvania,  wliieh  is  more  important.  'IMicre  nmy  be  some  in  tlie  Western 
(States  witli  wliich  1  am  iu)t  familiar.  NN'hen  I  lirst  started  in  l)usiness 
ns  a  farmer  hinds  cost  IVoni  floO  to  $L'()(>  an  acre,  and  now  tliey  liave 
droi)ped  down  until  there  isainntst  no  bottom  in  prices.  It  has  };ottcn 
to  be  a  life  and  death  strujijih^  us  to  whether  we  can  live.  1  think  it  is 
an  undisputed  fact  that  wJien  the  agiicultural  industry  is  depress('<l 
alnmst  all  other  industries  are  depressed,  becai'.se  aj^riculturists  arethe 
producers  of  wealth.     This  is  the  foundation  of  the  whole  of  our  trouble. 

]\lr.  Taw.^EY.  Vou  say  that  after  J.SIH)  for  a  few  ycnirs  the  farmers  of 
New  Jersey  got  alou}>"  very  well.  How  mu(Oi  of  your  product  was  sold 
to  the  surrounding  towns  and  cities  of  New  Jersey  as  compared  Avitli 
that  wliieh  you  have  been  able  to  dis])ose  of  siiu-e  18!)!? 

Mr.  J)iONiSE.  1  do  not  know  that  1  would  be  able  to  give  you  the 
tigures,  l)ut  the  proportion  would  be  very  small. 

Mr.  Tawnkv,  Has  the  dennuul  ior  y<uir  imxlucts  been  the  same  since 
1894  as  before? 

Mr.  J)ekise.  I  see  m>  reason  why  it  has  not  been.  1  think  it  has,  but 
we  do  not  know  M'hat  to  do  with  the  [)rodu('t,  because  we  iiave  lu)  out- 
let for  it.  Potatoes  are  selling  at  10  cents  a  bushel,  and  anybody  who 
knows  anything  about  farming  is  awar<^  that  we  can  notIiv(^  and  ])i'oduce 
potatoes  at  that  price.  As  my  friend  has  suggested,  i  remember  dis- 
tinctly that  ])revions  to  putting  tlie  duty  on  sugar  coming  from  Cuba 
our  i»otatoes  dropp(!d  ."iO  eents  a  barrel  in  forty-eight  lumrs.  We  have 
La<l  eontrol  of  the  Cuban  maiket  from  18U0  until  ISUf  in  a  great  meas- 
ure, but  now  it  has  been  turned  over  to  the  English  nuu'ket,  and  of 
course  it  has  alfected  our  agrieultuial  ju'oducts  terribly.  The  amount 
of  f.)reign  hay  receixed  in  Nev^  York  City  since  the  liist  of  September 
amounts  to  one-third  of  all  the>  receive;  so  that  you  can  see  how  it 
atfects  us. 

The  CiiAiJMAN.  Wliere  does  it  conu'  from? 

Mr.  Denisk.   Fiom  C-anada. 

Tlio  CiiAiiJMAN.  From  where  do  the  i)otatoes  come  that  take  the 
place  of  the  Ameri(!an  ])otatoes  in  Cuba? 

Mr.  Demse.  They  mostly  come,  IVom  Cainula.  Tw(»  years  ago,  in 
189-t,  1  visited  Canada.  I  wanted  to  look  up  the  agricultural  industry 
there,  and  J  went  over  about  the  middle  of  Seplembei',  or  a  little  later, 
and  1  saw  that  exeiy  nnin  was  putting  uj)  hay.  1  asked  them  w hy  it 
was,  and  they  said  that  the  duty  had  been  taken  oif  hay,  so  tiiat  they 
could  ship  it  into  the  United  Stales. 

We  do  not  want  any  more  than  our  Just  share,  but  we  feel  that  legis- 
lation has  been  a  little  bit  against  us.  Ccjrtainly  it  has  depressed  our 
business  in  a  great  measure,  so  much  so  that  it  would  beabnost  impos- 
sinle  for  us  to  succeed  liuaneially.     I  am  si»eaking  of  faiiners  in  general. 

Mr.  Tawniov.  You  have  mentiouiul  hay  and  ]»otatoes.  You  say  (hat 
the  sale  of  your  hay  has  been  very  materially  alfectetl  by  the  impoita- 
tion  of  hay  from  Canada,  and  the,  sale  of  ICnglish  [lotatoesin  the  Cuban 
nnirket.  Winit  other  faiin  [uodiicts  have  been  similarly  affected  since 
18«>4?  > 

Mr,  Denisk.  "Well,  the  duty  has  been  taken  otf  <'ggs  and  cabbage. 
Cabbage  has  been  imported  from  Cei many  to  the  extent  that  it  does 
not  pay  now  for  us  to  grow  cabbage.  Tiie  (Jernnin  cabbage  seems  to  be 
superior  to  ours.  Our  agricultural  interest  is  diversilied  outside  of  the 
l»otato  interest. 

The  CnAiu:\i/\N.  In  Ihe  Xew  Yoik  market  the  Ceriiian  (cabbage  has 
come  in  and  has  dr;\en  out  the  Mew  Jersey  cabbage! 


RECIPROCITY   STATEMENTS. 


283 


IS 


Mr.  Dentse,  Tos.  sir;  itcomos  intotho  Xew  York  market  free  of  duty, 
ami  wo  can  not  compete  with  those  i)eoi)le. 

Mr.TAWNEV.  Tlieii  youdidnotcomprelieml  myqnestloii  as  to  whether 
the  htcai  demand  is  as  jiiH'at  since  l.S!>I  as  it  was  i)rior  to  tiiat  timet 

Mr.  Denisk.  The  local  demand  is  not  as  {^reat,  I  supi)()se,  for  the 
reason  that  the  laborinji'  ])(M)j)le  have  no  work,  and  can  not  buy  our 
a<jric(dtural  i)i'oducts.  Wlien  a  laboan-  has  plenty  of  work  and  }i;ettin}'" 
fair  wages,  he  wastes  almost  as  nun-h  as  he  consumes,  and  upon  that 
jiround  J  think  that  there  is  notliiii<>-  like  the  quantity  of  agricultural 
products  consumed  now,  for  the  reason  that  the  people  have  not  money 
enough  witii  which  to  buy  them.  1  think  you  gentlemen  will  see  that 
lioint  quite  chMiriy.  Take  the  city  of  Trenton,  where  you  will  aee  men 
standing  around  tlu>,  streets  by  the  tliousands.  They  can  not  buy  agri- 
cultural ])roducts,  because  they  have  no  money  with  which  to  buy  tiiem, 
and  they  have  no  work.  If  the  manufacturers  are  prosju  rous,  it  would 
lielp  us  greatly.  Tlu»,  (lubim  nnirket  Avouhl  hel])  ns  in  oui-  county  nu)re 
than  in  any  other  county  in  the  State. 

The  (/IIAXRAIAN.  The  otlicr  gentlcjuan  stated  tliat  you  had  been 
injured  to  tin;  iimount  of  a. »  .illion  dollars  a  year  on  potatoes. 

Mr.  SciiENCK.  About  that. 

Mr.  M(!LauU!N.  15y  reason  of  the  duty  imposed  on  potatoes? 

Afr.  ItiK^NE.  Yes,  sir;  by  the  closing  up  of  the  Cuban  market.  « 

The  ('IIAIRMAN.  Tliere  is  a  duty  of  >!1.'-.M)  a  barrel  on  our  ]>otatoes, 
whicli  (loses  the  market  to  ns? 

Mr.  Denise.  Yes,  sir. 

The  CiiAiR^MAX.  I'lider  our  reciprocity  treaty  with  Spain  our  pota- 
toes went  in  free,  and  now  tiiat  we  have  im))oscd  a  duty  on  sugar,  (^uba 
imposed  a  duty  on  our  i)otatoes,  ami  the  English  potatoes  go  in  free, 
while  ours  nnist  i)ay  $i.LM)  a  barrel,  so  that  it  i)racticaily  excludes  the 
American  potato? 

iMr.  Denise.  Yes,  sir.  When  the  season  oi)ened  T  sold  potatoes  at 
$1.-5  a  barrel.  We  succeeded  in  shi])ping  some  into  (-iiba,  i)aying  the 
duty;  but  it  is  impossible  to  grow  tlu'm  at  tJ")  cents  a  barrel. 

Mr.  Tawney.  The  taritf  imi)osod  by  Spain  discriminates  against  the 
Ameiican  i)()tato  in  favor  of  the  Mnglish  to  the  extent  of  ><1.LM>  a  barrel  ? 

Mr.  1  )EN1SE.  Yes,  sir;  it  vutually  closes  the  Cuban  nmrket  against  us. 

Mr.  McLauuin.  You  said  sonu'thing  about  sugiir.  They  impose  a 
duty  on  our  potatoes  because  we  impost^  a  <luty  upon  their  sugar? 

j\lr.  Denise.  Yes,  sir;  it  is  retaliation. 

The  (■tiair:\[AN.  The  repeal  of  the  reciprocity  (clause  in  the  law  of 
1S!I(),  imposing  a  tarilf  on  sugar,  was  of  course!  the  cause? 

Mr.  DiCNiSE.  I  think  y<r,i  gentlenu'n  can  readily  see  that  any  branch 
of  industry  where  so  much  money  is  locked  up  and  which  brings  in  so 
little  returns  for  the  amount  of  labor  can  not  stand  tb.is. 

Mr.  Tawney.  How  Avas  the  ()rice  of  land  in  Xew  Jersey  in  189L*  and 
ISIKJ,  as  com])ared  with  th(>,  price  of  land  there  at  the  present  time? 

Mr.  Denise.  At  the  present  tiuu'i  it  is  almost  impossible  to  sell  land 
at  any  figure.  1  have  in  mind  a  i»iece  of  land  sold  two  years  ago  by  the 
sherilf  at -^'W  an  acre.  It  almost  inaUes  the  farnu'r  sick.  Of  course 
that  was  a  force<l  saie. 

Mr.  Tawney.  Was  there  any  deuniud  for  land  in  l.S'.)L>? 

Mr,  Denise.  It  sold  then,  but  not  as  liigh  as  it  had  Ix'en  selling.  It 
had  depreciated  in  value,  an<l  has  been  for  a  nund)er  of  years;  but 
within  the  ]»ast  two  yeais  it  dropped  rapidly. 

Mr.  M<MjAUIIIN.  VVhat  is  the  principal  crop  in  Xew  Jersey! 

Mr.  Denise.  I'he  potato  crop  is  the  priiu;ipal  one;  but  wo  raise  fruit, 
which  is  a  large  in<lusliy. 


'   5 


.     f.a 


284 


RECIPROCITY   STATEMENTS. 


Mr.  ]\rcLATn?iN.  I  low  iiiauy  crops  do  you  raise  ])er  year? 

INIr.  Di-iNisio.  Wo  only  raise  one  on  tlie  same  i)iece  of  jjround.  We 
fertilize  and  try  to  niise  i)retty  larj-e  crops.  That  makes  our  aji^ricul- 
tural  industry  very  expensive — to  liave  to  Antilize  so  lieavily. 

JMr.  jMc^Laurtn.  Ls  there  not  some  dilferenc^e  in  the  market  price  of 
your  ])otatocs  and  the  Southern  potatoes'? 

Mr.  Denise.  The  Southern  i)otato  does  not  attect  our  market.  Theirs 
is  soiie  before  we  go  into  the  market.  We  come  in  just  ahead  of  New 
York  State. 

Mr.  McLaurin.  Is  there  not  some  din'erence  in  the  quality'? 

Mr.  Denise.  The  ];otato  which  we  fiiow  in  Monmouth  County  is  the 
pocuest  in  q.iality  which  is  grown,  and  yet  it  seems  to  be  the  oiu>,  that 
sells  the  best.  That  seems  rather  strange,  but  it  is  the  fact.  The 
l)()tato  we  want  to  raise  is  the  one  that  will  sell  the  beat.  It  is  a  good- 
looking  potato,  but  the  (quality  is  poor.  As  a  farmc^r,  I  farm  for  dollars 
and  cents,  and  if  the  market  wants  a  certain  kind  I  try  to  furnish  it. 

The  (Jhaikman.  I  suppose  that  the  condition  in  Monmouth  ('(mnty, 
N.  J.,  is  an  iiulex  of  the  situation  in  the  other  counties  of  the  State 
aiul  of  the  agri(;ultural  interest  on  the  Atlantic  Seaboard? 

Mr.  Denise.  It  is  the  same  thing  which  exists  all  along  the  line.    We 
submit  facts  as  to  our  own  county,  because  we  are  familiar  with  them. 
]  have  traveled  through  tlie  State  of  New  Jersey,  and  it  seems  to  be 
the  complaint  everywliere. 
!  I  Mr.  McIjAURIn.  ])o  you  raise  any  sweet  potatoes? 

;i  /  Mr.  Denise.  J  do  not;  but  they  do  raise  some  in  the  lower  i)a:t  of 

I    'i  tlic  State. 

li  Mr.  McTiAUKiN.  Is  there  any  duty  on  them? 

|.  Mr.  Denise.  I  don't  know  about  that.     I  am  not  prepared  to  say,  as 

Ij    !  I  do  not  grow  any  of  them,  and  have  not  studied  the  question. 

i|!  I,  The  Chairman.  You  say  the  chanj-e  in  the  tariff  on  potatoes,  eggs, 

ii'  etc.,  has  materially  affected  the  farmers  of  New  Jersey,  and  the  Atlantic 

,|i  :  Coast? 

:|j  Mr.  Denise.  Very  much. 

ii;  The  Chairman.  Where  do  those  importations  come  from  which  come 

into  New  York  and  the  other  markets  on  the  seaboard? 

Mr.  Denise.  In  a  great  measure  tliey  come  from  (Janada,  and  cab- 
bage comes  ])rinci pally  from  Germany.  Wliile  for  a  few  years  the  New 
York  market  has  been  affected  with  potatoes  from  Scotland  and  Ger- 
many, still,  they  can  not  now  shi])  them.  Vessels  arrive  with  a  few ;  but 
they  will  not  trouble  us  because  the  price  is  now  so  low. 

Mr.  ScHENCiv.  Germany  sends  us  eggs,  as  well  as  cabbage. 

Mr.  Denise.  Canada  is  a  very  large  country.  They  have  a  small 
l)opulation  and  consume  few  agricultural  products  in  proportiim  to  their 
crop,  which  nuikes  a  great  difCerence. 

The  Chairman.  The  Canadians  are  exporters  of  all  kinds  of  farm 
l)roducts? 

Mr.  Denise.  Yea,  sir;  and  they  do  not  consume  much.  They  injure 
US  very  mucli.  Their  agricultural  industries  are  now  prosperous,  while 
ours  are  not. 

Mr.  Tawney.  What  is  your  jmsition  in  the  Grange? 

Mr.  Denise.  I  am  simply  a  member  of  the  Grange.  I  am  president 
ot  the  New  Jersey  State  Jioard  of  Agriculture,  a  larmers'  institution, 
recognized  by  the  government  of  the  State  of  New  Jersey.  They  have 
appointed  us  to  come  down  here  and  present  their  claims  in  ])ers(Hi. 

Mr.  SCHENCK.  I  hope  the  committee  recognize  that  we  are  principally 
interested  in  opening  the  Cuban  market.    It  is  a  great  loss  to  our 


RECIPROCITY    STATEMENTS. 


285 


e 
le 


'7 


county.    The  industry  of  shipjung  potatoes  from  New  York  to  Ciibii  is 
a  {jreat  one. 

Tlie  ('iiAiRMAN.  You  have  ibund  that  the  piiii(;ipk>,  of  reciprocity  is 
one  that  works  well,  especially  to  your  class  of  farmers? 

Mr.  SCHENCK.  It  is  very  imj)ortant.  We  must  have  the  Cuban  mar- 
ket. We  soon  (;log  the  American  market  without  the  Cuban  market. 
The  Cuban  market  comes  Just  in  time  for  us.  Our  potatoes  are  shii)[)ed 
U)  Cuba  and  sokl  at  an  immense  price.  I  think  tiiey  sell  from  $")  to 
$5.50  per  barrel.  This  is  almost  imperatively  necessary  to  our  existence 
as  an  agricultural  district.  We  are  at  a  loss  to  know  what  to  do  now, 
for  the  reason  that  our  potatoes  are  not  marketed  at  the  i)roper  titnc. 
When  the  Cuban  market  was  open  we  had  good  prices,  but  now  prices 
are  constantly  declining. 

Mr.  Tawney.  Can  you  give  the  committee  an  ai)pr()ximate  idea  as  to 
the  extent  of  the  local  denuiiul  for  agricultural  products  in  New  Jersey, 
and  how  much  they  have  dropped  within  the  last  few  years? 

Mr.  SciiENCK.  No,  sir;  I  can  not.  I  only  know  that  the  loss  of  the 
Cuban  markets  atlected  us  so  seriously  that  the  price  of  agricultural 
products  is  so  low  that  the  market  is  destroyed,  not  only  for  this  sec- 
tion, but  for  all  others. 

Mr.  Tawney.  The  local  demand  has  increased  during  the  last  three 
years  for  agricultural  i)roduct8'? 

Mr.  iSciiENCrc .  I  am  not  able  to  state  positively  as  to  that.     Of  cwirse " 
population  is  increasing. 

Mr.  Tawney.  The  consumptive  power  of  the  people  is  not  so  great 
to-day  as  it  was  four  years  ago? 

Mr.  ScHENCK.  I  am  not  able  to  answer  that. 

Mr.  Tawney.  They  have  not  the  same  means  of  buying  the  agricul- 
tural products  as  they  had  two  years  ago? 

Mr.  ScHENCK.  Of  course  not. 

The  Chairman.  You  agree  that  when  the  laborers  have  steady 
employment  they  have  a  greater  purchasing  power  than  when  they  are 
tramping  and  seeking  em])loyment? 

Mr.  SciiENCK.  Undoubtedly. 

Mr.  Tawney.  That  was  the  point;  whether  local  demand  hadincreased? 

Mr.  SCHENOK.  It  has  not;  because  the  people  have  not  had  the  money 
with  which  to  buy. 

T!ie  Chairman.  These  facts  will  be  presented  to  the  full  committee. 

Mr.  ScHENCK.  When  we  presented  this  matter  to  the  board,  it 
aroused  the  whole  house,  and  they  raised  a  subscription  of  *.'iO  to  have 
this  resolution  brought  here  and  ])resented  in  person ;  and  we  are  pleased 
with  your  kiiulness  in  granting  this  hearing. 


.y 

r 


286 


KECiriiOCITY    bTATEMENTS, 


STATEMENT  OF  THE  HON.  JOHN  D.  CLARDY,  A  REPRESENTATIVE 
FROM  THE  STATE  OF  KENTUCKY. 

Mr.  Chairman  and  Gentlemen  :  ]\Iy  object  in  (ioniiiig  before  the 
committee  is  not  to  make  any  extended  speocli,  but  simply  to  miike 
some  statements  upon  a  matter  wliicli  has  never  been,  so  I'ar  as  1  know, 
l)reseuted  in  Congress  before,  simply  for  tlie  reason  that  no  reincsenfa 
tive  has  been  here,  probably,  who  was  sufliciently  familiar  with  the 
subject  to  present  it,  or  who  thought  it  of  sufhcient  importance;  but  for 
several  States  it  is  a  nnitter  of  very  great  importance.  The  subject  is 
the  introduction  of  American  tobacco  into  foreign  countries. 

England  and  (xermany  are  really  the  only  countries  now  which  are 
freely  open  to  the  reception  of  tobacco  shipped  by  dealers  in  oi-  manufatv 
tUrers  or  producers  of  tobacco  in  this  country.  Germany  and  England 
are  open  markets.  They  allow  the  tobacco  to  come  in  ficely,  and  allow 
the  8hipi)er  to  sell  there.  Engiaiul  puts  a  large  taritf  on  toba(U'o — 7(5 
cents  a  pound — but  still  England,  iu)(  withstanding  this  enormous  tariff, 
is  the  best  market  we  luive  tor  a  large  pro[)ortion  of  tobacco  which  we 
raise  for  export.  All  the  strii)S  that  are  nuide — I  will  exi)lain  that  the 
word  "strips"  simi)ly  means  the  leaf  with  the  stem  taken  out,  and  it  is 
known  in  Kentucky  as  strips.  Probably  Kentucky  makes  nine-tenths 
of  the  strips  nuule  in  the  United  States;  some  are  made  in  Virginia, 
and  i)robably  a  few  in  ]\Iaryland,  but  Kentucky  and  Tennessee  largely 
supply  these  strips.  Now,  the  other  countries — France,  Siiain,  Italy, 
etc. — buy  their  tobacco  through  what  is  called  "regie"  contracts. 

As  that  nnitler,  probably,  is  not  generally  umlerstood,  I  will  explain 
that  "rdgie"  is  a  contract  made  by  a  Government,  "regie "represent- 
ing the  Government,  authority  being  derived  frym  "rex,"  a  king. 
These  contracts  are  purely  Government  nu)nopolies.  All  these  coun- 
tries which  buy  through  these  agents  hold  the  tobacco  as  a  Govern- 
ment monopoly.  They  make  a  contract  with  certain  individuals  or  linns 
generally  located  in  New  York  to  furnish  thcju  so  nuich  tobacco,  and 
the  three  grades  of  A,  B,  and  C  are  the  grades  usually  furiiished. 
They  furnish  A  at  such  a  piice,  and  B  at  such  a  price,  and  C  at  such  a 
price.  This  is  the  only  outlet  for  this  tobacco.  It  is  nnide  for  export, 
and  there  is  a  large  surplus  which  can  not  be  used  in  this  country.  It 
Las  to  seek  this  particular  nnirket  because  there  is  no  other  outlet  for 
it,  and  the  consequence  is  the  men  who  get  these  contracts  sit  right 
down  in  New  York  and  of  course  work  for  their  own  interests. 

Now,  having  agn^ed  to  furnisli  this  tobacco  to  these  countries  at  a 
stipulated  price,  tliey  <ix  a  price  on  our  i)roduct  and  arrange  to  buy  our 
tobacco  at  a  price  which  is  iioav  absolutely  below  the  cost  of  production, 
as  Mr.  McMillin  there  very  well  knows,  as  he  in  acquainted  somewhat 
with  the  tobacco  trade  of  Teuuessee,    Now,  the  object  of  the  amcud' 


KKCIPHOCITY    STATEMENTS. 


'287 


tnciit  wliicli  T  iiitrodiicod  mid  wliicli  wns  cinricd  in  tlio  TTouso  and 
('nd)(»diod  in  tlic  agiieultniiil  appropriation  l»ill  was  simply  this,  that 
tiirouj^li  negotiations  with  tiicst'  conntiieH,  tlirough  a  system  known  as 
r(!(M|)rocity,  or  wliatcver  name  yon  may  call  it,  to  see.  if  possibly  these 
countries  can  not  bo  induced  to  allow  our  tobacco  to  seek  an  open 
market  in  these  countries. 


I?  i 


EVER^  WIIKTIE  A  GOVERNMENT  MONOl'OLV* 

The  (^'iiATRMAN.  fiOt  mo  illt'^rrupt  you  there.  Do  you  say  there  is 
uo  open  market  for  tobacco  in  any  of  the  countries  of  Europe  except 
(lermany  and  England  f 

IMi",  (Jlaruy.  Tliat  is  all,  except  a  few  minor  countric  where  very 
litth^  is  used. 

The  Chairman.  And  they  are  purely  Goveruinent  monopolies  iu  all 
other  i'ountrios? 

Mr.  ('lari)Y.  Pure  mono])olies.  I  have  some  statistics  which  I 
endiodied  in  my  si^'och  when  1  introduced  this  re.solution  in  ordju-  that 
you  may  understand  the  imi>ortance  of  this  matter  in  these  States. 
You  will  understand  we  raise  in  Kentucky  two  distinct  varieties  of 
tobacco;  one  the  liurley  tobacco,  which  is  a  domestic;  product  and  used 
for  mamifacture  at  home.  It  is  necessary  for  me  to  make  this  explana- 
tion because  a  g<H)d  numy  of  you  gentlemen  are  not  accpiaiiited  with 
this  trade  and  1  have  been  occu]>iod  all  my  lile  in  making,  selling,  buy- 
ing, and  trading  in  it,  and  conse<iucntly  I  feel  competent  to  si>eak  upon 
the  subject. 

The  JJurloy  tobacco  is  mostly  used  at  homo,  and  the  competition  at 
home  for  numufacturing  purposes  nuikesthat  tobacco  brinjf  much  liigher 
]»rices  than  the  other.  It  can  only  be  raised  in  a  limited  area  of  country, 
including  theblue-grasssectionsof  Kentuckyandasmall  section  in  Ohio. 
It  originattul  in  Brown  County,  Ohio,  <piite  a  nund)er  of  years  ago. 
Then,  there  is  another  tobacco,  called  the  dark  or  shii)ping  tobacco,  a 
heavy  tobacco,  nuich  strongei-  in  anibeer,  to  use  a  common  ex[)ression, 
and  this  tobacco  is  only  used  to  a  limited  extent  in  this  country;  the 
hirger  jiortion  of  it  has  to  seek  a  nuirket  in  foreign  countries.  "  Strips" 
are  mostly  sent  to  England,  which  is  an  open  market.  The  heavy,  dark, 
richest  tobacco  we  have  goes  to  Cerniany,  which  is  also  an  oi)en  market, 
aiul  those  are  the  only  two  cduntrios  that  are  oi)en.  Of  course,  some  is 
sent  to  Africa  and  some  of  the  minor  countries,  but  I  mean  the  principal 
commercial  countries. 

I  talked  with  Senators  when  that  amendment  was  before  the  Senate, 
as  they  did  not  understand  what  it  meant,  and  1  had  to  explain  what 
it  was  before  they  would  ])ermit  it  to  remain  in  the  bill.  They  did  not 
know  what  it  meant.  They  did  not  kn(»w  tobacco  was  excluded  from 
those  countries  and  not  allowed  to  be  sold  in  the  open  nuirket  as  other 
farm  products  are  sold.  Now,  take  Fran<!e,  for  instance.  Fiance  buys 
from  Kentucky  and  other  i)laces,  J  will  read  you  these  statistics  in 
order  to  show  what  an  enornu)us  jmxluct  this  thing  is.  IJere  is  Ken- 
tucky tobacco  raised  in  one  year — 1  stated  that  it  was  181)5,  but  the 
tobacco  was  raised  in  J.SOi  and  the  sales  nuide  in  18t)5:  At  Louisville 
there  were  sold  174,885  hogsheads  of  tobacco;  there  are  1,4()()  pounds  to 
each  hogshead.  The  Kentucky  tobacco  sold  at  <  mcinnati  was  .'U),(>00 
hogsheads;  tobacco  sold  at  llopkinsville,  15.000  hogsheads;  at  Olarks- 
ville,  Kentucky  tobacco  sold,  15,000  hogsheads;  at  I'aducah,  12,000 
hogshead;  at  Maylield,  5,000  hogsheads.  Tobacco  bought  loose  and 
not  resold  iu  any  of  these  uuirkets,  20,000  hogsheads. 


''•i 


288 


UECirROCITY    STATEMENTS. 


Now,  this  i«  fixcli.sivo  of  at  least  .|,()n(»,<i(H)  to  (;,()()(),()(»()  ponnds  of 
tuliacco,  ])rol)al>l,v  more  tliiui  that,  oi' strips  iiiihle  at  Ownislioro  aii<l 
Iloiulorsoii  iiiid  sent  to  I'jijjliind  as  Kciihicky  (obarco,  tiiiit  is  not 
inclii(l«!(l  in  this  ostiinatc,  niiikin}>;  271,(K)0,()(»(>  jjounds  of  tobacco  raised 
in  Kentucky  alone,  but  yon  will  leniendx'i-  that  KcMitucky  raises  jnst 
iibont  hall"  the  tobacco  raised  in  tiie  I'nited  Stales.  I  wonid  static  that 
this  is  a  very  iin))'Mtant  matter.  J  I' we  had  an  open  market  in  ('"ranee, 
;br  instance,  and  Italy  ami  Spain,  where  they  nse  all  this  tobacco,  yon 
w  ill  see  at  onc(^  what  an  enormous  advantage  it  wonld  be  to  the  pro- 
(lin-ers  of  tobacco.  It  bcinj?  a  ](nre  monoi»oly,  they  fix  i\u\  number  of 
lio};sheads  they  will  take,  and  of  course  we  have  jienerally  more,  than 
enough  to  sn])ply  this  demand,  an<l  the  conse(|uenco  is  they  can  llx  the 
price  at  aiiythinj;-  they  <'ho<)se,  for  the  reason  that  this  tobacco  finds  a 
imiiket  only  in  those  particular  countries. 

Mr.  Mo>iiLLiTs'.  I  believe,  it  comes  in  ])ait,  if  I  remember  the  inveati- 
liiition  1  nnide  a  f^ood  while  a^o,  from  the  fact  that  in  I'lanee  and  some 
other  countries  you  mcntion(Hl  they  ^ain  an  enormous  revenue  from 
that"^ 

Mr.  Clardy.  1  am  eominji  to  that  in  a  moment. 

Mr.  McMii,i;iN.  And  they,  having;'  a  monoixdy  of  not  only  the  luir- 
chiuse,  but  the  sale,  can  control  the  sale? 

TlIK    I'OUAOOO   TRADE   ^VITII    I'RANCE. 
f 

Mr.  ClARDY.  1  am  coming' to  that.  Take  Frau<'e,  for  instaM<'e;  she 
iniys,  say,  $1(),0(M),()0()  worth  of  tobjicco  from  Kentucky  and  these  other 
States. 

The  CiiAiRMAX.  That  is,  the  (Tovernmcnt  authorities  do? 

Mr.  (  'lardy.  Yes,  sir.  They  receive  it,  and  it  is  sold  by  (lovernment 
oflicials.  Nobody  is  i)ermitted  to  pell  any  tobacco  in  I^'rance  ex<'ej)t 
(lovernment  ollicials,  and  it  is  sold  as  (iovernment  tobacco.  Now, 
listen;  they  sell  this  tobacco  at  from  2(l()to  S()()])erc!nt  over  what  they 
l)ay  for  it.  They  make  a  (!lear  profit  on  that  $.S,00<),()()()  or  $10,()0(>,()(K) 
worth  of  tobacco  winch  they  buy  of  from  $(;r>,(M)0,()(K)  to  $7(),0()(),()()0. 
Just  think  of  that.  They  take  that  from  the  producers  of  this  country, 
which  ought  i)art]y  at  least  to  go  into  the  pockets  of  the  ])eople  who 
raise  this  i)roduct;  France  alone  actually  makes  a  revenue  of  over 
>i<(i(),0()(),00()  a  year  ni)on  the  tobacco  she  buys  here,  under  these  regie 
c()ntra<'ts.     Italy  also  buys  a,  barge  amount  of  tobacco. 

Mr.  McLatjkin.  What  is  the  date  of  your  record?  I  am  much  inter- 
ested in  that. 

Mr.  Clardy.  It  is  the  lath  of  February.  J  can  give  you  a  copy  of 
my  speech  i)iinted  in  one  of  my  home  ])apers,  ami  1  v.ouhl  be  glad  to 
give  one  to  each  of  you  gentlemen.  It  is  a  little  fulsome  in  there  [illus- 
trating], but  I  supposes  it  did  not  do  me  any  harm  in  my  district. 

Now,  France  takes  annually  10,()()()  hogsheads.  Italy  is  also  one  of 
the  largest  ])urchasers,  and  takes  18,000  hogsheads  of  this  regie  tobacco. 
Spain  takes  10,000  hogsheads,  and  Hungary  and  Austria  annually 
about  0,000  hogsheads.  Now,  the  difference  in  Austria  and  Hungary  is 
this:  They  buy  through  their  consuls,  but  still  it  is  a  mono])oly;  but  in 
those  cases  the  consuls  make  the  contracts,  whereas  in  the  other  coun- 
tries they  are  made  through  the  regie  contractors.  Now  in  regard  to 
the  advantages  this  would  be  to  purchasers,  Suppose,  by  ottering 
France  and  these  other  countries  sonu^  favors,  some  facilities  for  their 
own  products,  we  indnc^e  them  to  allow  our  tobacco  an  oi)en  market. 
Now,  it  does  seem  to  me  the  most  important  thing  for  the  people  of  this 


9 

V' 


UK(;n»i{()ciTv  .sTA'ri:MKNTs. 


2H9 


of 

iiy 

is 
lin 
m- 
Ito 

Iff 
Mr 
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lis 


(iountry  this  ('oujiicsH  van  do  lor  tlu^  tUriiicrs  ol'  this  country  is  to  open 
iis  I'ar  lus  iiiiiy  ho  the  iiiarkots  aviiihihh'  to  them  for  thoir  siirphis  tol>iio(!o 
]»ro<li(  t.  Now,  as  ii  lariiier — ami  pretty  much  cvcrythiii;^'  I  liavc  is 
invested  in  liuinin},' — I  do  not  heheve  that  the  •arnier  can  he  protcM-fed 
in  siir|)his  jiroducts  like  wheat,  tol»ac<'o,  and  ct»tton  hy  ev<'n  a  hoiinty. 
I  do  not  helieve  that  is  a  ii<:,lit  way  to  (h»  it;  hut  I  l»(^Hev<'-  tiie  hetter 
way  is,  as  far  as  may  \ni,  iA)  open  nj)  the  avenues  of  commoi'cte  as  lar  as 
it  is  ])ossil»le  to  <h>  so,  an<i  {iivv-  lis  free  ac(M'ss  to  thos«>  countries. 

We  (\i)  not  need  any  hv\\)  in  makinj;  this  tobacco  if  we  lia<l  a  fiee  open 
phice  to  sell  it;  hut  wiien  we  are  shut  off,  and  thesedovernments  under- 
take to  say,  "  W(!  will  buy  only  so  iniwh  of  your  toba<-co,  and  we  will 
take  that  tobac<-o  and  sell  it  as  a  'iovernment  monopoly  and  make  a 
])iolit  on  it,"  at  least,  a  part  of  it  ouj?ht  to  ^o  to  the  producer. 

The  CiiAiii.MAN.  Do  1  understand  that  you,  as  a  ]>rodiicerof  toba<'CO 
in  Kentucky,  could  nol  consi<;n  a  million  pounds  of  tobacco  to  yourself 
direct  in  I-'rance  and  then  have  tli(!  ])rivilei;e  of  selling  it  in  the  markets 
of  France! 

INlr.  (Jlaudy.  You  can  not  sell  a  ])ound  of  it.  Xobody  can  soil  in 
France", or  any  of  those  conntiies,  except  through  a(Jovernment  ollicial. 
It  is  all  regulated  by  their  revenue  system.  Von  can  not  even  raise 
tobacco  in  France  and  sell  it  unless  it  goes  into  the  bands  of  the 
Government. 

Mv.  M(!MiLT.TN,  Not  Oiily  that,  but,  if  1  remember  correctly,  this 
further  diiliciilty  stands  in  the  way — that  that  is  a  privilege  that  is 
given  in  two  ways.  I^^irst,  it  is  sold  like  our  ju'lvilegci  of  dealing  in 
si)irits  by  way  of  license,  and  in  tue  second  place,  it  was  formerly  given 
in  lieu  of  bounties  or  pensions  to  maimed  soldiers  in  Framie. 

OTIIEE   GOVERNMENT   MONOPOLIES. 

Mr.  Clardy.  That  n;ay  be  the  case  in  some  countries,  but  1  under- 
stand I'^rance  does  it  only  through  the  (jrovernment  otlicials,  and  it  is 
done  as  a  (Iovernment  nioiu)i)oly  and  the  Government  ollicers  control 
the  whole  thing. 

The  GuAiRMAN.  Tobacco  is  largely  used  in  Jlussia? 

Mr.  Glardy.  They  buy  it  through  their  consuls — Austria,  Hungary, 
and  liussia. 

The  Giiairman.  The  monopoly  is  the  same? 

Mr.  Glai{1)Y.  Yes,  sir. 

The  Chairman.  How  is  it  in  Turkey? 

Mr.  Glaudy.  They  do  not  use  much  of  our  tobacco  there.  They 
raise  their  tobacco,  and  what  little  they  buy  they  get  through  the 
German  market. 

The  Chairman.  Is  there  any  trade  in  China  and  Japa'  '  Vmerican 
tol)ai'co? 

Mr.  Clardy.  Very  little. 

The  Chairman.  Is  there  any  restriction  by  those  (lovernments? 

Mr.  Glaudy.  None  that  1  know  of.  These  ]>rincipal  markets,  which 
take  a  large  surplus  of  our  tobacco,  are  the  ones  we  desire  you  gentle- 
men, if  possible,  to  do  something  to  open. 

The  Chairman.  I  understand  you  to  say  in  selling  upon  the  open 
market  England  has  a  customs  duty  of  70  cents  a  pound  I 

Mr.  Clardy.  Yes.     1  will  explain  why  we  take  the  steins  out  of  the 

tobacco.     You  understand  the  stems  constitute  a  considerable  portion 

of  the  weight.     We  i)ull  out  the  steins  so  as  to  only  have  the  absolute 

weight  of  the  leaf.    These  strips  go  to  England,  and  a  good  many  get 

H.  liep.  213G3 19 


'jno 


IlKriPKOCITY    STATF.MKNTR. 


out  on  tlio  ('OntiiiPiit,  tliroiiji'i  ICiiylaiul,  iiiul  wIhmi  flu-y  po  to  Kiifjliind 
tlicy  jx*>  into  ii  IxhhIciI  wiiiclioiist'  like  our  whisky  docs,  ixtt  IIm>  srllcr 
of  t<»l>Ji<'c()  line  lu'ViT  liriirs  niiytliiii;''  iil;;;;if.  llu^  tiiiiU'on  it  in  ICii<^']:iii(l. 
'llir  iiiiiikrl  is  (jtintcd  to  liini  at  so  iiiiniy  pence  prr  poiiiul,  and  in  our 
dealing's  with  l";n<,Hiind  we  lu'vor  havo  a  l»ill  <»t'  laclinj;  or  anythinj^  tnat 
makes  a  ifcital  of  tilt' tariir  W(^  have  to  pay.  We  sell  the  fol)aeeo  in 
tlie  hofided  wait^house,  and  when  a  man  takes  it  out  lor  use  lie  pays  the 
<luty. 

Tho  CiiAiK'MAN.  Von  ship  to  I''.n<rland,  and  put  it  in  a  l)onded  ware- 
liousc,  and  llie  person  who  l)uys  it  tlien  lias  to  pay  t'lotarill' 

Mr.  (Ji,AK*i>v.  Tho  man  who  tak<'s  it  out  pays  tlu^  <lnty. 

The  ('llAllJMAN.   Von  yet  that  nuicli  less,  li()w«'ver,  (or  the  tobacco? 

Mr.  ('hAUl)V,  That  is<loul)tloss  partly  (rue.  Now,  lor  instance,  the 
sivcrajje  price  of  these  strips  which  }jo  to  Enj^land  does  not  exceed 
])roi»al)Iy  7  cents  a.  pound  in  our  currency  here;  (hat  would  lie  '•t.\i\.  in 
Mn^laiid.  Yon  see  how  iniicli  they  make.  They  get  7(i  cents  for  every 
])ouiid  that  is  boufjflit  here  at  7  cents. 


DUTY   ON    ToUAfiCO    IN    ENGLAND. 

Tli(\  ('HATUAfAN.  That  is,  a  ixnind  of  leaf  tobacco  thai  would  sell  in 
the  market  here  for  7  c<'nts  a  jioimd  before  it  can  be  sold  in  the  lOniilish 
market  must  pay  a  duty  to  tho  ICnjiiish  custom-house  olHcers  of  70 
cents? 

Mr.  Clahdy.  Yes,  sir. 

The  CiiAiiiMAN.  That  is  a  pretty  liiffli  duty? 

IMr.  (ll.Altl)Y.  That  is  enormous. 

Ml'.  MoMiLMN.  Allow  me  to  say  at  this  point,  I  am  more  isxmihav 
with  I'^rance,  but  I  think  an  analojious  situation  jn-evails  elsewhere. 
They  put  an  internal  tiix  on  it,  and  in  l-'ranci^  if  a  man  wants  to  raise 
tobacco  they  jiauj^e  his  patch  uiwler  ^cnernim'iilal  siiixirvision ;  they 
count  the  plants  and  char<re  u])  so  many  |)lants  as  capable  of  i)ro(lucinjaf 
such  a  wei<ihtof  tobac-t  o,  and  then  he  ]>ays  a  tax  on  the  capacity  of  his 
])alch  Just  like  avc  })ay  a  lax  here  on  the  capacity  of  a  distillery,  and  it 
is  an  internal  tax  and  they  derive  a  great  revenue  from  this  source,  and 
that  is  the  way  it  is  obtained. 

Mr.  (Jlardv.  r»ut  no  matter  whether  it  is  raised  in  France,  you  can 
not  ship  in  there  except  tlirouji;h  the  contractors  and  they  shij)  to  the 
(Jovernment;  it  is  sent  under  contract  to  the  (jrovennnent,  and  it  is  all 
controlled  and  sold  by  the  <TOvernment.  These  are  the  conditions  and 
tnnibles  we  are  in  in  repird  to  tobacco.  Now,  as  to  the  etl'ect  it  would 
have  upon  the  i)rodu(!er,  if  we  had  an  o])cn  market,  sui)poso  you 
gentlemen,  by  act  of  Congress,  or  act  of  commiMce,  or  act  of  the  Agri- 
<'ultural  Department,  give  those  countries  soim;  a<lvantage.  Of  course 
we  have  got  to  (h)  this  in  a  friendly  way.  Francis  has  the  right  to  raise 
revenues  like  every  other  country,  but  if  we  make  it  to  lier  interest  to 
let  our  products  into  a  free  market  in  that  country,  do  you  not  see  what 
effect  it  will  have  upon  the  market  here,  1  supj>ose  we  can  sell  twice 
as  unudi  tobacco,  probably  two  or  three  or  four  times  as  much,  and  they 
can  buy  it  at  a  fourth  of  what  they  pay  now,  and  we  get  doubly  what 
we  are  paid  now  by  having  an  open  market  and  selling  directly  as  Ave 
allow  them  to  sell  their  goods  here.  Now,  why  vshould  this  country 
continue  to  rest  under  this  sort  of  arrangement  with  other  countries 
jiermitting  their  goods  to  come  here,  they  i)aying  a  tariff,  that  may  be 
all  light,  but  we  let  their  goods  sell  upon  tlie  oi)en  market  and  yet  they 
will  not  permit  us  to  sell  a  single  pound  of  to]»  \cco  iu  their  country 


KECIPliOCri'Y    SrATK.MKNT.S. 


201 


cxcrpt  by  ciilciiiij;'  into  ii  Gdvcruiiic'it  coiitnict,  whi»*-li  is  an  absolute, 
iiicKbiltciiitcd  monopoly. 

Mr.  .M('li.\i/i:iN,  Now,  if  thiis  is  sucli  a  soiirct^  of  reveniui  to  I"'rant;c, 
wonjil  sJMi  b(^  liiirly  to  let,  tliis  sonico  of  rcviMino  j-i*? 

.Mr.  (ii.Ai.'DV.  li(^t  luirput  a  tax  ow  it.  lOnj-iainl  has  |»iit  an  cnoiinoiis 
tax  on  it  and  still  is  tlui  ^icativst  outh^t  oiu  tobacco  has,  as  my  friend 
(.Mr.  I'lvans)  from  iM^ntucUy  knows  very  well.  We  iiave  mad*'-  as  nnudi 
as  17, 0(10. 0(10  pounds  in  my  own  county,  and  yon  svv,  what  a  bi^;"  tiiiny; 
it  is  to  onr  people. 

N«)w,  giMit lemon.  1  shall  bo  j^hul  to  answer  any  (pu'stions  you  may 
desire  to  ask  about  this  nnitter.  Vou  see  tlict  re:>,l  <;ist  of  the  mattci'; 
'I'lie  object  is  t<»  j;('t  this  market  oi)en,  and  if  we  can  oifer  them  some 
sort  of  an  arran;;ement  or  indn<;ement  that  will  satisfy  them  it  is  better 
Ibr  them  to  let  our  tobacco  intheopi'n  market,  I  think  you  will  ha\e 
«lone  a  {greater  yood  to  the  a;;ricultnral  i)e<.'ple  wli(t  raise  tobacco  than 
ever  has  been  done  in  all  the  lej^islation  that  has  been  enacted  in  this 
Conj^ress  for  the  past  twenty  years. 

Th«',  ( 'IIAIUMAIN.  What  States  are  interested  in  this1? 

Mr.  (iLAUDY.  Well,  larj^cly  Kentucky  more  than  any  other  State,  but 
also  Tennessee,  Maryland,  and  N'irj^inia.  I  beli(jve  those  are  the  <»Mly 
Slates.  Jt  would  in<;identally  beuetit  the  whole  tobacco  trade  by 
enlarj;in^  the  demand. 

The  CiiAiWMAN.  What  about  Wis'jonsin  ? 

Mr.  CLAifUY.  NV'is  onsin  does  not  raise  the  kind  of  tobacco  they 
want.    They  raise  cij^ar  tobacco. 

The  Ohaihman.  This  is  chcwiiiiv  and  smokin;;-  t()bac(;o? 

Mr.  C/LAiiDV.  This  is  known  in  the  trade  is  shii)ping  leaf  toba(!co, 
which  is  a  heavy,  toujjfh,  black  tobacco;  and  tiiat  is  what  they  want  so 
nnu'h  in  those  countries  where  they  nninufactnre  it,  in  (Jlermany,  and 
some  in  France.  They  have  a  iiyhter  description  of  tobacco  raised  in 
Turkey  and  sonu;  in  (Jermany  and  France,  but  they  have  j^ot  to  have 
this  strong;'  bla<;k  tobacco  of  ours  to  mix  with  it,  to  give  it  body  and 
strength,  to  make  it  strong. 

The  CilAiUMAN.  You  have  given  us  a  very  inter"sting  statement, 
Doctor. 

Mr.  Claudy.  Now,  if  there  is  anything  else  yo'i  wish  to  know  1  will 
be  glad  to  give  it  to  you.  You  know  I  might  talk  on  this  for  any  length 
of  time,  but  i  do  not  desire  to  bore  you  geatlemen  or  detain  the  com- 
mitte-  , 

The  Ohairman.  Do  you  think  of  anything  further? 

INIr.  Clakdv.  1  am  anxious  to  get  something  done  for  the  imi)rove- 
ment  of  onr  people,  if  poh:sible,  in  this  direction.  It  will  raise  the 
price  of  tobaeco  in  the  open  market  and  would  raise  the  price  at  home. 
If  it  could  be  that  a  dealer  in  tobacco  could  ship  and  sell  in  the  open 
nmrket  it  would  almost  double  the  price  of  tobac(!o  at  once  in  onr 
(•(Mintry.  I  hoi)e  yon  gentlemen  will  be  kind  enough,  if  you  can  do  any- 
thing in  that  direction,  that  you  will  do  so.  I  am  vei-y  much  obliged 
to  you  for  your  kindness  in  aUowing  me  to  make  this  preiientation. 

The  (JllAiilMAN.  It  has  been  very  pleasant  to  hear  you. 


API^ENmx   .1. 


REPLIES  TO  THE  INQUIRIES  OV  THE  COMMITTEE  ON  WAYS 

AND  MEANS  FliOM  THE  MANEFAOTUKEHS   VNl) 

MERCHANTS  OE  THE  UNITED  STATES 


MANUFACTiniERS. 


CIRCULAR  OF  INQUIRY  TO   MANUFACTURERS. 

Committee  on  Ways  and  Means, 

House  of  Reimje^tENTAtives, 
WashiiHjion,  IK  C,  March  I,  1896. 

SiE:  In  order  that  they  m.ay  give  more  intelligent  consideration  to 
pending  an<l  proposed  legislation,  the  subeouiiuittee  of  the  Conunittee 
on  Ways  and  Means  of  the  House  of  Representatives  in  charge  of  bills 
relating  to  reciprocity  arrangements  iaid  commercial  treaties  Avould  be 
greatly  oblig(Hl  if  you  would  forward  them,  at  your  earliest  conven- 
ience, your  views  and  suggestions,  and  such  information  as  you  are 
able  to  furnish  upon  tiie  following  ])oinis,  luimely : 

1.  Give  full  name  and  address  of  tirm  or  company. 

2.  Lines  of  manufacture. 

3.  Amount  of  capital,  number  of  persons  employed,  and  value  of 
annual  product. 

4.  Do  you  find  your  market  at  home  or  abroad,  and,  if  botli,  in  what 
proportion  ? 

5.  Do  you  sell  direct  to  foreign  dealers  or  through  commission  houses? 

6.  Have  you  made  any  direct  etlort  to  extend  your  foreign  trade; 
and  if  so,  by  what  means,  with  wlnit  success,  and  in  what  countries? 

7.  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  prevent  the 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  means  by 
which  tlicy  may  be  removed? 

8.  What  changes  have  recently  occurred  in  the  tarills  of  foreign 
countries  so  far  as  they  relate  to  your  lines  of  manufacture? 

9.  How  far  would  the  lemoval  or  reduction  of  tie  (M'stoms  duties 
im])Osed  by  foreign  nations  ui)on  the  merchandise  in  whi«di  you  deal 
aid  in  the  extension  of  your  export  trade? 

10.  What  is  the  output  of  your  establishment  (!om[)ared  witis  tliat  of 
six  years  ago? 

11.  How  does  the  present  cost  of  production  conjpare  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  an<l  transpor- 
tation rates  by  sea  and  land? 

1.'}.  How  do  present  selling  prices  compare  with  those  of  six  years 
ago? 

13.  What  competition  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  markets? 

14.  What  advantages  do  your  foreign  competitors  have  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

15.  To  what  extent  can  you  compete  with  foreign  manufacturers  in 
(piality  antl  i)rices? 

10.  Has  the  total  juoduct  of  the  United  States  in  your  line  of  manu- 
facture increased  or  decreased  during  the  last  six  years? 

'^5 


'  l 


■'.n  V 


'J 


296 


RECIPROCITY    STATEMENTS. 


17.  What  proportion  of  the  total  i)roseiit  and  possibh)  output  in  your 
linos  of  manufacture  in  th*^  United  States  can  b(!  absorbed  by  tiuj 
domestic  market;  suul  v  hat  would  be  your  estimate  of  tlie  natural  sur- 
phis  for  export  if  all  manufacturers  in  your  lines  were  produciiifj:  to 
their  full  capacity  ?  (The  purpose  of  this  incpiiry  is  (o  secure  as  accurate 
jui  estimate  as  ]»ossible  of  the  necessity  lor  new  Ibreiyn  markets  to  the 
manufacturers  of  the  United  States.) 

IcS.  Was  the  j>eneral  ellect  of  the  reci])rocity  treaties  nnul<^  in  18!>0 
favorable  or  unfavorable  to  the  ex])ort  trade  of  the  United  States,  and 
what  was  the  effect  of  their  repeal  ? 

li).  What  was  the  eft'ect  upon  farm  products  ]>articularly  ? 

(If  your  replies  to  incpiiries  17  and  IS  are  based  upon  actual  experi- 
ence, ])lease  give  details  as  fullv  as  possible.) 

20.  ])o  you  favor  the  application  of  the  recii)rocitv  jMinciple  to  future 
taritf  legislation,  and  the  cimctment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible? 

These  in([uiries  have  been  forwarded  to  several  hundred  persons, 
firms,  and  corporations  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  replies 
are  intende<l  for  publication  Avith  a  repoit  which  the  Connnittee  on 
Ways  ami  Means  will  nnike  to  the  House  of  liopresentatives;  but,  if 
so  desired,  any  information  leceixcd  will  be  regarded  as  confidential. 
All  values  should  be  ex|)rossed  in  United  States  gold,  and  all  <[uantities 
in  our  weights  and  measures. 

Any  suggestions  or  infornnition  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  incjuiries  will  be  appreciated. 
1  am,  sir,  your  obedient  servant, 

A.  J.  Iloi'KiNS,  (Jhairman. 


KEPLIES— ( I  ENEliAL 


National  Asmciation  of  Manufacturer  a  of  the  United  (States  of  America. 

Philadelphia,  Pa.,  March  I!),  IS'.x;. 

Deaii  Sir  :  Speaking  for  the  widely  diversilied  interests  rei)resented 
by  the  National  Association  of  Manufacturers,  I  desire  to  i)resent  brielly 
a  few  arguments  bearing  upon  the  advantages  of  reciprocity  as  a  gen- 
eral principle  in  international  trade.  My  view  of  this  matter  is  taken 
from  a  purely  business  8tandi)oiiit,  without  regard  to  any  i)olitical  con- 
siderations, for  there  is  probably  no  feature  of  our  tariff  system,  i)ast 
or  present,  that  has  come  so  near  as  reciprocity  to  being  a  purely  busi- 
ness matter.  To  this  fact  may  be  attributed  the  enllinsiasti(;  support 
which  the  pj'inciples  of  recii)rocity  have  received  from  men  of  widely 
dift'ering  i)olitical  views. 

The  treaties  of  conunential  reci])rocity  which  were  negotiated  under 
the  act  of  1800  were  based  ujion  the  very  simple  princii)leot  demanding 
something  in  return  for  that  which  we  liad  to  give.  We  had  a  market 
in  thio  country  for  ceitain  commodities  whicli  w^-re  i)roduced  in  the 
West  Indies,  in  Central  America,  and  in  South  America,  but  we  were 
not  dependent  solely  upon  those  sources  of  supply.  On  the  other  haiul, 
those  countries  had  need  of  many  pro<lucts  of  our  agricultui'e  and  indus- 
try, but  we  could  claim  no  mono])oly  of  the  supply  of  these  articles. 
The  treaties  of  commercial  reciprt)city  which  were  negotiated  under  the 


RECIPROCITY    STATEMENTS. 


297 


Mlt«'«l 

)vieny 

<i(Ml- 

il  coii- 
I,  past 
Imsi- 
H)]>()i't 
vidcly 

uiidt'i" 
iidiiij^' 
lailu't 
ill  tlio 
wrrc 
hsind, 
iiidiis- 
ticles. 
er  the 


customa  laT»  of  18!)0  simpl}'  secured  the  {idTniR,sioii  of  our  ]irodiu!t.s  to 
tlio  southern  countries  more  freely,  witliout  niakinj,^  any  sacritice  of  our 
own  home  markets.  This  was  accomplislicd,  not  by  niakinj^  further  con- 
cessions to  tliose  (iountries,  but  by  demandinj^  from  tliem  tlie  f^rantinj; 
of  privih^ges  in  return  for  the  advantages  which  they  had  h)nf>-  enjoyed 
in  our  own  markets. 

It  re(piires  but  a  glance  at  the  conditions  under  whicli  the  treaties  of 
commercial  reciprocity  were  negotiated  to  reveal  how  nui(;hwas  gained 
by  this  country  and  how  little  Avas  given  in  return.  IJy  permitting  the 
contiiuiance  u])on  the  free  list  of  three  commodities  upon  which  duties 
had  not  been  imposed  for  many  years,  and  by  conditioiuilly  placing  two 
additional  items  upon  our  free  list,  concessions  were  obtained  from  a 
dozen  foreign  countries  which  either  wholly  removed  or  largely  reduced 
the  duties  imposed  by  tliose  nations  on  over  2,(M>()  articles  of  American 
production  or  manufacture.  Tea,  cotl'ee,  and  hides  were  already  on  the 
free  list — had  been  there  siiu;e  1873 — and  the  duty  was  removed  from 
sugar  aiul  molasses  by  the  act  of  181)0.  The  very  simple  provisions  of 
the  re<!ii>rocity  clause  of  this  act  authorized  the  imposition  of  duties 
upon  all  of  these  commodities  when  imported  from  countries  to  which 
American  goods  could  not  enter  as  i'reely  as  the  goods  of  other  nations. 
It  was  not  by  the  extension  of  the  free  list  of  our  customs  law  that 
favors  were  obtained  from  other  nations;  it  was  by  the  threat  of  the 
imposition  of  duties  upon  the  products  of  countries  which  discriminated 
against  us  that  American  merchants  were  secured  ecpial  rights  with 
their  competitors  in  foreign  markets. 

This  was  at  once  an  act  of  iusti<;e  and  a  good  stroke  of  business. 
We  were  buying  annually  from  lirazil  from  85(),()0(>,0(>()  to  $()0,()(K>,000 
W(uth  of  merchandise,  the  larger  part  of  which  was  coffer,  upon  which 
no  duty  had  been  charged  since  1873,  although  IJrazil  imposed  onerous 
customs  dues  upon  the  principal  articles  of  export  from  the  United 
States,  with  the  result  that  tiie  shiiiment  of  American  goods  to  Urazil 
amounted  in  1890  to  only  .*1 1,1)72,211,  or  less  than  one-lifth  of  the  vnlue 
of  our  imports  from  lU'azil.  The  demand  that  Brazil  should  reduce  the 
duties  on  Ainerican  i)roducts,  under  penalty  of  the  imposition  of  a  duty 
of  3  cents  per  ])ound  on  coffee,  was  fully  Justiticd  upon  business  grounds 
if  by  no  other  reason.  The  effect  of  the  more  favorable  conditicms 
which  followed  the  negotiation  of  a  reciprocal  treaty  were  a  still  greater 
Justilic  ation  of  the  demand  that  had  been  made,  for  there  was  an  imme- 
diate increase  in  the  trade  between  the  United  States  and  Brazil. 

Tlie  new  treaty  with  Brazil,  which  went  into  operation  on  April  1, 
18'.»1,  pla<'ed  wheat,  corn,  flour,  cotton-seed  oil,  coal,  machinery,  tools, 
railway  materials,  and  many  other  articles  ujion  the  Brazilian  free  list, 
while  a  reduction  of  25  ])er  cent  was  made  in  the  duties  im])osed  iipcui 
lard,  bacon,  hams,  canned  goods,  leath'r  goods,  lumber  -and  manufac- 
tures of  wood,  and  several  other  articles.  The  effect  upon  our  trade 
with  that  counti-y  was  felt  at  once.  The  following  statement  shows  our 
exjiorls  of  Hour  to  Brazil  during  six  fiscal  years — two  years  prior  to 
the  negotiation  of  the  reciprocal  treaty,  three  years  during  the  oper- 
ation of  that  treaty,  and  one  year  after  its  rejieal : 


Yoam. 

Harrols. 

687, 342 
!I18..')47 

8;i7,  (i;i!t 

920,  86!) 
775,  42.5 

Vnliit'8. 

1890   

#3  304  990 

1891    

3  838  019 

1892         

4  972  .'):i9 

1 89:t          

3,  047  2.51 

1894 

3,  5:iH,  871 

1 805 

2, 083, 948 

I 


I.        '! 


H 


29« 


RECIPROCITY    STATEMENTS. 


It  is  ill  our  dealings  with  Cuba,  liowever,  that  the  benefits  of  reci- 
procity have  been  most  strilcingly  shown.  Sugar,  which  fonncd  the 
larjjest  item  in  our  imports  lioin  Cuba,  was  phiced  upon  tlie  free  list 
by  the  tarilf  act  of  1<S!)0,  but  its  free  entry  was  made  conditional  upon 
the  reasonable  treatment  of  American  products  in  those  countries  from 
which  sujjar  was  iini)ort('d  into  the  United  States.  There  was  reserved 
the  privilefje  of  imiiosinjj  duties  at  about  one-half  the  former  rates  upon 
suji'ar  and  molasses  when  imported  from  eonntries  which  discriminated 
against  the  United  States  in  their  customs  laws.  Under  normal  trade 
conditions  Cuba  would  have  looked  to  the  United  States  for  her  supi)ly 
of  breadstuifs,  i>rovisions,  and  in  fact  everything  needed  that  couhl  not 
be  i)roduced  at  home;  but  in  order  to  control  the  trade  of  her  West 
Jndia  colonies  Spain  imjiosed  a  duty  of  nearly  $5.50  \h'v  barrel  upon 
American  Hour,  or  considerably  more  than  the  flour  was  worth  at  the 
port  of  shipment  in  this  country.  Under  the  reciprocity  treaty  which 
SiHjretary  Blaine  negotiated  witli  Spain  and  which  went  into  effect  on 
September  1, 1801,  the  duty  on  Hour  was  ri'duced  to  $1  per  UL'Opouiuls; 
large  reductions  were  made  in  the  duties  on  other  breadstuifs,  the 
duties  on  fifteen  leading  commodities  were  reduced  one-hall",  and  about 
forty  items  were  ad<led  to  the  free  list. 

The  more  favorable  conditions  created  by  this  treaty  gave  an  imme- 
diate impetus  to  our  trade  with  Cuba,  the  extent  of  whicii  is  stiilcingly 
shown  by  the  following  statement  of  our  exports  to  and  imiiorts  from 
Cuba  during  the  live  fiscal  years  given  below: 


Tears. 

Export.-*. 

Imports. 

1800 

$1:1,084,415 
12,224,888 
17,  0,'):i,  .570 
24,  1.57,  (ill8 
20, 125, 321 

" 

If."):!,  801,501 
(il  714  :i'.i5 

1801 

1892 

77  !i;il  Ii71 

180;! 



78  700  .500 

1()94 

75,  078,  201 

During  the  ten  years  preceding  the  tariff  act  of  1890  our  (exports  to 
(!uba  remaiiied  ])ractically  stationary;  in  fact,  there  was  a  decline  of 
about  $1,000,000  in  that  period,  while  our  imports  from  Cuba  during 
the  same  ten  years  decreased  over  $10,000,000.  l>ut  under  three  years 
of  reciprocity  our  trade  with  Cuba  reached  the  highest  itoint  ever 
timched,  showing  an  increase  of  $8,000,000  in  exports  and  $11,000,000 
in  imports. 

To  take  a  single  item  from  our  trade  with  Cuba,  flonr,  shows  how 
sharply  the  influence  of  the  reciprocity  treaty  was  felt.  The  exports  of 
Hour  from  tlie  United  States  to  Cuba,  which  amounted  to  111,117  barrels 
in  the  fiscal  year  ended  June  30,  J8!)l,  increased  to  300,175  barrels  in 
181L' — the  Hrst  year  during  which  the  recii)rocity  treaty  was  in  opera- 
tion—to Gl(),10(')  barreis  in  1893,  and  »iOL;,218  barrels  in  18!M,  the  last 
year  of  the  treaty  of  reciprocity  with  S[)ain.  Upon  the  passage  of  the 
customs  law  of  1891,  which  compelled  the  abrogation  of  this  treaty, 
Spain  immediately  retaliated  byiiu;reasing  the  duty  on  Hour  from  $1  to 
$4.75  per  21*0  pounds,  with  the  result  that  the  exports  of  American 
Hour  to  Cuba  fell  to  379,850  barrels  in  the  Hscal  year  ended  June  ,">0, 
1.S95.  So  great  was  the  outcry  of  the  Cubans  against  the  enormous 
duty  on  Ameruuin  Hour  that  the  Spanish  Government  was  forced  to 
reduce  the  rate  from  $1.75  to  $1  ])er  IfUO  pounds,  still  four  times  the  duty 
chargi'd  under  the  leiriprocity  treaty. 

I  wish  to  give  i>urticular  emphasis  to  the  importance  of  our  relations 


RECirROCITY   .STATEMENTS. 


209 


Kil.liTl 
,  7011,  SOfl 
,  078,  -JCl 


•ts  to 
lie  of 
uiing 
years 
ever 
00,000 

low 
rts  of 
iirels 
els  ill 
opeiii- 
le  last 
of  the 
reaty, 
$1  to 
erieau 
lie  ;>o, 
iinous 
ed  to 
13  duty 

atioiiss 


with  (Inba  under  the  recii)roeity  treaty,  because  that  island  is  our 
nearest  and  best  eustonier  to  the  southward.  Not  only  has  the  abrojija- 
tioii  of  the  reciprocity  treaty  caused  p^reat  direct  loss  to  this  ('oiinfry, 
but  it  has  imposed  j^reat  hardship  upon  the  jieople  of  Cuba.  With  the 
advantages  enjoyed  under  reciprocity  tb"  United  States  was  assured 
the  practical  control  of  the  Cuban  trade,  and  the  conditions  were 
equally  satisfactory  to  the  peoph^  of  Cuba  and  this  country.  When 
Senator  Washburn,  of  iVIinnesota,  went  down  to  Havana  for  a  week  in 
the  early  part  of  l^^M  h(^  lound  abundant  <n-i(lence  of  the  satisfactory 
workings  of  the  treaty  then  in  force.  Speaking  about  what  he  saw. 
Senator  Washburn  said: 

In  convor.sation  witli  Amcrici  ii  morpluints  !1ih1  others  doinj;  linsinoss  in  Cnl).n,  I 
leanu'il  that  tlio  ctl'fct.s  oftlio  tomincrcial  relations  croiitod  by  tlii.s  arranj^oniOTit  hail 
hcvu  really  remarkable,  and  wero  incrcaHinj;  in  iiiijiortaiuM^  and  m.ajfnitndo  day  by 
day.  'i'ho  Ainerieans  doing  'msiiicsH  there  are  inort-  than  satislicd  with  the  results. 
'i'h«  Cubans  are  Ka.Msded,  and  everyone  is  satislied  exce])tin;;'  S])ain  itself  and  tho 
rej>r(!8entative.s  of  (ierniany,  Franee,  and  other  continental  eonntries,  ■who  mh)  the 
trade  «)f  tho  island  gra<lnally  slijijjing  away  from  them  and  linding  thoinsclves  siip- 
])lanted  bj'  the  proclucts  of  tho  American  farmer  and  the  wares  of  tho  American 
workshop. 

For  another  view  of  the  commercial  relations  Ix'twceu  Cuba  and  the 
United  States,  let  nie  present  these  few  lines  from  a  memorial  presented 
to  the  Spanish  rarliament  by  the  sugar  manufacturers  and  ])lanters 
in  Cuba  on  Sejitember  30,  l.S!)t,  one  month  alter  the  Wilson  bill  had 
be('ome  a  law: 

Ujion  the  derogation  of  the  ror  iprooity  tre.aty  with  tho  Un  itrd  States,  tho  monatrona 
tiiritf  of  tho  year  1S',)2  was  unmercifully  ren(Mved  and  aii]>lie<l  to  th(<  impoi'ts  from  nil 
IbrcMgn  countries,  onc^  of  the  lirst  etfects  having  been  to  inereas(i  the  ])rice  of  pro- 
visions iniported  from  tho  United  States.  thcrel)y  raising  the  expense  of  living  on 
this  j)eo]d(%  besi<les  increasing  the  cost,  almost  to  the  ]ioint  of  ])roliildtion,  of  the 
importation  of  machinery  ami  other  products  of  foreign  countries  essential  to  the 
preservation  and  develo]inient  of  its  industries,  tho  etfects  of  which  are  shown  iu 
the  increased  cost  of  production  and  in  abaiulonrneut  of  nt>ces8ary  repairs. 

It  is  not  necessary  to  rehearse  tho  conditions  under  which  reciprocity 
treaties  were  negotiated  with  other  countries,  nor  need  1  show  what  they 
accomplislied  or  how  their  abrogation  li:is  injured  our  foreign  trade.  I 
desire  to  point  out  only  a  ftnv  spe(;ilic  reasons  for  such  legislative  entiot- 
nicnts  as  will  permit  the  restoration  of  treaties  of  commential  reciprocity 
with  those  nations  with  wlii(^h  they  were  established  under  the  act  of 
]<S!t(),  and  the  negotiation  of  similar  treaties  with  other  countries  with 
wliich  moie  freedom  in  our  trade  relations  is  desirable. 

( 1 )  To  business  men  who  have  given  the  subject  careful  consideration 
recijirocity  commends  itself  as  a  sound  and  jiulicious  business  jjrinciple. 

(2)  As  applied  under  the  act  of  ISOO,  reci])rocity  was  a  tlioroughly 
American  ])rinciple,  inasmuch  as  it  ])rovi<UMl  for  the  protecition  of  our 
coiinnennal  interests,  not  onlv  at  home  luit  abroad. 

(3)  As  a  princijile  that  has  been  earnestly  advocated  by  both  Repub- 
licans and  Democrats,  reciprocity  ought  to  be  considered  ujxin  a  strictly 
non])artisan,  n<uipolitical  basis. 

(4)  The  ])ra('tical  application  of  reciprocity  under  the  provisions  of 
the  act  of  1S«)0  demonstrated  beyond  ((uestion  the  ability  of  such  treaties 
to  extend  and  enlarge  our  foreign  trade  under  exceedingly  favctrahle 
conditions. 

(.■))  Ajiart  from  those  results  which  can  be  measured  in  money  values, 
the  reciprocity  treaties  rendered  valuableserviceinellecjting  more  cordial 
relations  between  the  ITnited  States  and  other  nations. 

((5)  From  a  iirotectionist  standi>oint,  reciprocity  is  not  open  to  objec- 
tions, as  it  involves  no  sacrilicc  of  the  jirinciples  of  protection.     The 


5  f,  y 


iL 


I' 


:il4  ii 

f 


300 


RECIPROCITY    STATEMENTS. 


treaties  which  were  negotiated  under  the  act  of  1890  added  nothing  to 
the  free  list  that  liad  not  aheady  been  phiced  there  by  the  law  itself. 

(7)  Those  who  advocate  free  trade  ought  not  to  object  to  reciprocal 
commercial  treaties,  as  their  whole  effect  is  to  lessen  the  restrictions 
upon  international  trade. 

(8)  Treaties  of  commercial  reciprocity  with  other  nations,  |)articu- 
larly  the  Latin-American  countries,  are  necessary  as  a  matter  of  self- 
l>rotection,  for  treaties  of  this  charac-ter  are  being  or  have  been  nego- 
tiated between  Euroi)ean  Governments  and  nations  to  tlie  south  of  us 
to  the  detriment  of  our  commercial  interests  abroad. 

]n  behalf  of  the  enormous  industrial  intcests  represented  by  this 
association,  1  desire  to  urge  with  all  jiossible  emi)liasis  the  necessity 
for  such  treaty  relations  with  foreign  nations  as  shall  insure  the  utmost 
possible  favor  to  American  products  in  the  markets  of  the  world. 
Yery  respectfully  yours, 

Theodore  0.  Search, 
President  N'ational  Astiociation  of  Manufacturers. 
Hon.  A.  J.  Hopkins, 

Chairman  Subcommittee  on  Beciprocity  and  Commercial  Treaties. 


Louisville  and  Nashville  Railroad  Company,  St.  Louis,  Mo. 

Our  records  show  that,  from  the  establishment  of  our  line  of  steamers, 
December,  18!)3,  from  Pensacola,  Fla  ,  to  Havana,  Cuba,  until  the  with- 
drawal of  the  reciprocity  relations  with  Cuba,  August,  1894,  we  handled 
from  St.  Louis  as  follows: 

Tons. 

Flour  (177,334  sacks) 17,733 

Com  (21H  787  sacks) 24,066 

Oats  (]2,I<),S  Macks) 1,000 

Bran  (7,231  sacks) 578 

Hay  (14,909  bales) „ 800 

Total  (twenty  iiiontlis) 44, 177 

Since  that  time  to  date  we  have  handled: 

Tons. 

Flonr  (43,761  sacks) 4,376 

Bran  (4,«94  sacks) 391 

Corn  (4,81>S  sai'ks) 531 

Hay  (9,344  bales) 234 

Total  (nineteen  months) 5,532 

The  shipments  of  Hour  since  the  Pensacola  route  was  opened  have 
been  made  by  Plant  Milling  Company,  Kauffman  Milling  Comjjany,  J, 
F.  Imbs  &  Co.,  Keillor  Bros.,  St.  Louis  Victoria  Milling  Company,  Camp 
Spring  Milling  Company,  and  E.  O.  Stanard  Milling  Company. 

The  grain  and  bran  sliipmeuts  by  Block,  Dean  &  Co.  and  Connor 
Bros.  &  Co. 

The  hay  shipments  by  G.  W.  Smith  &  Go. 

The  shipments  of  other  articles  have  not  been  very  heavy,  consisting 
of  coffins  from  St.  Louis  Cofhn  Company,  barber  chairs  from  the  Koken 
Barber  Supply  Company,  iron  pipe  and  castings  from  L.  M.  Kumsey 
Maiuifactnring  Company,  office  desks  from  the  Western  Furniture  Com- 
])any,  stoves  from  the  Excelsior  Manufacturing  Company.  At  times 
there  has  been  a  movement  of  mules  from  this  market  to  Havana  via 
the  Cairo  Short  Line  to  New  Orleans  and  Morgan  Line,  routing  of 
which  being  controlled  by  New  Orleans  parties. 


RECIPROCITY    STATP:MENT8. 


301 


Palmer,  Smith  d;  Co.,  Newark,  N.  J. 

In  answer  to  your  iiniuiry  I  would  say  tliattlic  effect  of  the  reciproc- 
ity tieaties  nej^otiated  by  tlie  last  Administration  upon  our  trade  was 
favorable  beyond  (luestion,  and  that  tiieir  repeal  was  most  disastrous. 
VVe  are  <le(M«ledIy  in  favor  of  the  ai)plication  of  the  ie('i])ro(ily  i)riiici- 
ple  to  all  future  tariff  lejjislation  by  ('onj^ri^ss,  aud  my  opinion,  based 
upon  contact  with  merchants  in  other  countries,  is  that  our  ex[)()rt  trade 
would  be  vastly  increased  thereby. 

1  am  in  favor  of  a  gold  standard;  of  building  uj)  our  merchant 
marine  with  free  sliijKs;  of  abrogating  the  duty  on  all  raw  mateiial, 
and  of  taking  the  tariff  question  out  of  politics,  and  placing  it  in  the 
hands  uf  a  standing  contmissiun. 


Tons. 

17, 733 

24, 066 

1,000 

578 

800 


Tons. 

4,376 

391 

531 

234 

5,532 

have 

f  >yj  J- 

ICamp 


listing 
Loken 
|imsey 
i  Corn- 
times 
ha  via 
Ing  of 


Cone    ixport  and  Commission  Company,  Ncic  Yorlc. 

Keferring  to  tlie  enormous  losses  which  the  trade  of  the  I J  nited  States 
has  suffered  by  the  abrogation  of  the  recii)rocity  tn.'aty  with  Urazil 
and  other  countries,  I  wish  to  give  you  one  illustration,  for  the  truth  of 
which  I  can  vouch,  and  that  is  that  this  company  exi)orted  to  lira/il 
in  1894  about  $200,000  worth  of  cotton  goods,  and  during  ISOo  (since 
the  treaty  was  abrogated)  we  have  only  shipped  $35,000  worth.  Had 
the  treaty  remained  in  force  I  am  sure  that  we  would  have  shipped  at 
least  $400,000  worth  of  goods  in  1805,  because  our  goods  were  only 
introduced  into  Brazil  in  18!)4  and  the  dennind  would  have  increased 
as  they  became  better  known  to  the  consumers,  I  authorize  you  to 
make  whatever  use  of  this  letter  that  you  may  think  benelicial. 


Chicago  and  Alton  Railroad  Company. 

To  tlie  first  question  we  should  state  that  we  think  the  reciprocity 
arrangements  under  the  tariff  act  of  1800  were  favorable  to  this  coun- 
try. It  seems  to  me,  however,  that  it  would  not  be  advisable  to  enact 
a  general  law  without  limiting  it  to  a  certain  extent.  It  would  seem 
that  a.  great  deal  could  be  accomplished  by  diplomatic  negotiations  in 
extending  the  export  trade  of  the  United  Stak3s,  if  the  representatives 
of  tliis  Government  abroad  would  interest  themselves  in  the  matter. 


Central  and  South  American  Telegraph  Company,  New  York. 

I  observe  in  the  daily  i)ress  that  your  committee  desires  ])ractical 
information  concerning  the  obstacles  in  the  tariff  or  customs  regula- 
tions of  foreign  countries  tending  to  retard  the  extension  of  our  export 
trade. 

Although  the  subject  1  address  you  on  is  not  strictly  within  the  scope 
of  the  reciprocity  treaties  referred  to,  it  is  within  the  mostfavored- 
natiou  clause  under  other  treaties,  and  pertains  to  a  subject  affecting 
most  seriously  American  commerce. 

I  write  you  respecting  foreign  cable  monopolies,  ])articularly  those  of 
English  and  French  cable  companies.    The  records  of  the  State  Depart- 


m'. 


>r-    --s- 


302 


Il^CIPKOCITY    STATEMENTS. 


iiicnt  from  thctiineof  AVillijiiu  J  I.  Sewanl  down  to  the  present  will  sbow 
that  the  ijolicy  of  the  United  iStiite.s  (Jovernnient  has  heen  to  re(]iiir6 
reciprocal  landing  rij^^hts;  that  is  to  say,  any  foreign  company  holding 
.111  exclusive  ri[;ht  in  a  foreign  country  is  ]>roliil)ited  landing  its  cable 
on  the  coast  of  tlu^  l^iited  States  until  such  foreign  country  extends  a 
like  ])rivilege  to  an  vVniorican  company. 

In  the  year  1800  the ]5razilian  (iovernmeut  granted  to  a  French  cal)le 
comi)any  the  exclusive  right  for  landing  a  (;!»\;le  on  the  north  coast  of 
Urazil  for  sixty  years.  This  cable  was  to  be  laid  to  the  Unite<l  iStates 
coast  via  the  West  India  islands.  The  French  comi)auy  has  for  years 
endeavored  to  obtain  landing  rights,  direct  and  indirect,  from  Htato 
and  the  National  (Jovernnient.  Recently  that  (company  without  author- 
ity has  landed  a  cable  off  Coney  Island  with  the  intciition  of  extending 
it  to  the  West  Indies  in  order  to  connect  Avith  its  cable  holding  exclusive, 
rights  in  Venezuela  and  Brazil.  In  this  connection  I  call  your  atten- 
tion to  Ex.  Doc.  No.  ."il,  Forty-eighth  Congress,  sect)nd  session,  .Jan- 
uary 27,  bSSa,  entitled  ''Message  from  the  President  of  the  ITnitiid 
(States,  transmitting,  in  resjtonse  lotsenate  resolution  of  May  2,  ISSI,  a 
leport  of  the  Secretary  of  JState  in  relation  to  the  landing  of  foreign 
cables  on  the  shores  of  the  United  States." 

Also  to  JOx.  Doc.  No.  122,  Forty-ninth  Congress,  "Message  from  the 
Presid(Mit  of  the  United  States,  transmitting  report  of  the  Secretary  of 
Stat(^  relative  to  the  relations  of  certain  telegraph  and  cable  companies." 

This,  the  Central  and  South  American  Telegraph  Company  (an  Amer- 
ican company),  of  which  I  am  i)resident,  has  for  years  been  endeavoring 
to  obtain  from  IJrazil  a  landing  right  in  order  that  it  might  extend  its 
lines  beyond  its  present  terminus,  Buenos  Ayres,  Argentina,  to  Kio  de 
Janeiro,  Brazil,  but  owing  to  the  exclusive  rights  held  by  the  VVesterii 
and  Brazilian  Telegraph  Company,  an  English  corporation  ojierating 
the  cables  on  the  (ioast  of  Brazil,  our  eftbrts  have  been  frustrated.  One 
of  the  results  of  these  nionoi)olies  is  that  the  Western  and  Brazilian 
Telegraph  Company  referred  to  makes  a  discriminating  charge  against 
I'nited  States  messages  in  the  following  manner:  The  local  i-ate 
between  Buenos  Ayres,  Argentina,  and,  say,  Uio  de  Janeiro,  I>razil,  is 
40  cents  a  word;  that  is  the  i-ate  charged  on  all  messages  between  Bern, 
Chile,  Argentina,  and  Brazil,  while  on  American  messages  the  rate  is 
04  cents  a  word,  the  54  cents  discrimination  being  enforced  so  as  to 
oblige  all  United  States  messages  to  be  routed  from  New  York  to  Brazil 
via  London,  Lisbon,  and  I'ernanibuco. 

Telegrai)hy  is  held  to  be  commerce,  and  as  these  exclusive  rights  of 
foreign  cable  companies  most  seriously  injure  American  commerce,  it 
would  seem  advisable  that  the  ])()licy  heretofore  pursued  by  our  Gov- 
ernment, declining  to  grant  lamling  rights  to  foreign  companies  holding 
exclusive  lights  from  foreign  countries,  be  allirmed  and  recognized  as 
the  permanent  polii^y  of  the  United  States  (Toverninent. 

Furthermore,  that  the  ettbrts  of  our  (Jovernment  should  be  actively 
directed  to  obtain  for  American  telegraph  and  cable  companies  eciuality 
of  lauUiug  rights. 


Kingslmid  tO  Doufflas  Mmmfacturiny  Comjxiny,  St.  Louis,  Mo. 

First.  Keeiprocity  is  an  essential  feature  to  the  successful  control  of 
foieign  trade. 

Second.  The  ett'eet  of  the  repeal  by  the  tariif  act  of  1804  has  been 
exceedingly  detrimental  to  our  business  by  curtailing  our  sales,  and  has 


UEOTPROCITY    STATEMENTS. 


303 


(liaconrnfft.l  us  in  oiir  ctllorts  to  pursue  tlic  advautajfes  wo  liad  uiuler 
the  re<'ipi'0(;ity  act. 

Third.  I  think  it  docidodly  advisablo  to  ai)ply  tlio  rcciprncitv  principle 
to  future  t;  I  rill'  Icsi.sliition,  and  to  cna<'t  a  j^encral  hiw  authorizing  the 
President  to  ncfjotiato  recii)rocity  treaties  with  (oreifiu  nations. 

Fourth.  Jiy  diplomatic  nejjotiiitions,  there  is  not  tlie  slijijhtest  doubt 
but  that  all  the  liatin-Ainericau  States  ciiii  be  induced  to  seek  the 
niiirket  of  the  United  States  for  their  wants  instead  of,  as  is  now 
liirfjely  the  case,  ffoing  to  Europe. 

From  i)ers<)nal  observation,  J  ktiowthe  llepublK'S  south  of  us  are 
anxious,  willinjj,  and  waitinjj,"  for  us  to  reach  out  the  commercial  liand 
of  welcome  invitin*;  tlieir  trade.  As  has  be<'U  expressed  to  me  by  a 
Rreat  many  parties  liviufj  in  our  sister  l{e])ublies,  lOurope  has  dominated 
them  to  such  an  extent  that  it  has  be(;ome  burdensome,  aiul  an  earnest 
effort  on  the  i)art  of  the  lluited  States  to  capture  the  trade  there  can 
n(tt  but  result  su(;cessfully. 

1  say  Jill  this  based  m  the  exjjeriem^e  of  fifteen  years  intercourse 
with  liatin-America,  and  T  further  say  it  as  a  Democrat.  Hut  reciproc- 
ity is  not  a  pcditical  (juestion.  It  is  emjjhatically  a  conunercial  one, 
and  should  be  so  treated  by  both  ]>artics. 

I  sincerely  lioi)e  you  will  be  able  to  establish  reciprocity  on  a  basis 
tliat  no  administration,  of  whatever  political  belief,  can  shake  or  affect 
in  any  way. 


n 


hts  of 
ice,  it 
Gov- 
Jddinjif 
led  as 

tively 
lality 


Henrii  T.  O.vnard,  Grand  Island,  Nehr. 

I  beff  to  call  your  attention  to  one  point,  and  that  is  that  in  dealing 
with  sufjjar-iiroduciujn"  countries  in  the  ]\I<'Kiidcy  bill  sugar  was  on  tlui 
fn^e  list,  and  the  <luty  on  sugar  was  restored  to  those  countries  not 
accepting  reci[)r()cily.  Today  we  have  a  duty  of  40  p-.  r  cent  on  sugar — 
about  1  cent.  Now,  in  reciprocity  arrangements  (unless  you  give  us  a 
bounty)  the  sugar  duty  should  be  increased  to  tliose  countries  refusing 
our  terms.  For  instance,  if  you  were  to  let  in  sugar  free  from  Cuba 
in  order  to  get  them  to  admit  our  thmr,  you  would  kill  the  American 
sugar  industry  in  order  to  help  the  Anu'ri(!an  Hour  mills.  If  tlu^  duty 
on  sugar  was  donbled  on  (luba  or  (iernumy  they  would  make  any  con- 
cessions not  to  have  their  su<iar  discriminated  against,  and  the  beet- 
sugar  industry  at  home  would  not  be  injured.  1  shall  be  in  Washington 
to  see  you  on  this  subject  next  month. 


Farln/,  Harvcii  cO  Co.,  Boston. 

We  are  not  manufacturers,  and  only  to  a  limited  extent  exporters, 
and  the  (piestions,  in  the  main,  ar(^  not  pertinent  to  our  business.  On 
general  principles  we  answer  jSo.  20  "  Y^es." 


n 


Irol  of 

been 
Ldhas 


T.  J.  Wrampclmcicr,  San  Francisco. 

As  I  am  not  at  present  actively  engaged  in  the  export  trade,  my 
answers  to  the  (piestions  would  be  of  no  use.  I  will  take  the  liberty 
to  say,  however,  in  answer  to  question  13,  that  1  favor  the  applicatiou 
of  the  reciprocity  i)riucipal  as  outlined. 


i    -I 


I 


304 


llECIl'liOClTY    STATEMENTS. 


PcrlhiN,  (loodiiin.  &  Co.,  New  York. 


We  arc  exi)()rt<'rs  of  news  and  hook  ])aper,  and  ol"  paiu'r makers' 
materials,  and  witliont  K<>i"f?  '"to  si)ec,ilic  answers  to  yonr  ycnernl 
qne.^tions,  we  liavc  (lie  honor  to  say  that  we  are  very  nnicli  in  taAor  oi' 
(ionimcrcial  re(!ii>ro(ity  and  all  treaties  looking  toward  that  end,  as  wv 
believe  thern  to  be  very  ninch  for  the  beuelit  of  the  eoniniereial  and 
maritime  interests  of  this  country. 


C  Morton  Stcirarf  <0  Co.,  Baltimore. 

In  the  natural  afiinities  of  commerce  there  is  no  more  consi)i(!uoua 
evidence  of  the  raison  d'etre*  for  reci])rocal  interconnnunion  than 
between  the  great  llepuhlic  of  Brazil  and  the  Itepublic  of  Ihe  United 
States  of  North  America. 

The  Jira/ilians  need  everything  we  produce;  their  aspect  is  one  of 
continuous  ]>roduction  of  what  we  need,  while  close  bonds  of  commercial 
union  wimld  in(;rease  their  consumption  of  everything  we  produce. 
Their  territory  covers  an  area  of  3,()0(),()()()  square  miles,  ouis  about 
3()0,()0()  less;  their  western  territory  is  undeveloped.  Our  popiUatiou 
is  about  05,000,000;  theirs  about  10,000,000.  J^ivery  man,  woman,  and 
child  in  this  country  consumes  with  geometrical  accuracy  1  barrel  of 
flour  ])or  annum;  in  the  Brazils  about  one-sixteenth  of  the  same  (juan- 
tity.  The  law  of  progress  on  this  article  proves  that  a  constant  increase 
of  consumption,  on  even  conditions,  can  be  counted  on.  In  slavery 
times  the  planters  kept  swine  for  food  supi)ly  for  their  hands;  as  labor 
has  become  nonmdic,  and  procures  its  own  subsistence,  the  United  States 
look  to  a  permanent  outlet  in  the  increasing  consumption  in  the  South 
American  Kepublic  for  provisions. 

There  is  every  reason  to  look  forward  to  great  mechanical  develop- 
ment in  railways  and  concomitant  enterprises,  and  the  people  of  the 
United  States  are  peculiarly  apt  in  the  spirit  of  invention  and  combina- 
tion. It  will  requ'ire  time  before  America  can  ex])ect  to  introduce  her 
manufactures  in  this  new  territory,  owing  to  the  fact  that  the  British 
credits  are  of  such  long  term  that  some  of  their  houses  have  a  ])ei'manent 
credit  outstanding  of  81,000,000  to  $1,250,000  always  on  that  (Country. 
As  long  as  the  importers  of  the  United  States  use  English  credits  to 
sui)\)ly  th(^  immense  balance  of  trade  against  this  country  it  is  not  to 
be  presumed  that  they  can  make  the  necessary  outlay  to  send  their  man- 
ufactures to  l»razil  on  the  extended  term  of  credit  which  is  the  cus>com 
now  between  ( Jreat  Britain  and  Brazil.  In  a  measure  the  same  state  of 
atfairs  exists  as  to  the  Continental  capitalists,  who  provide  facilities  for 
the  credii  system  now  general  with  their  trade  in  South  America. 

The  trade  from  Brazil  to  this  country  amounts  to  $100,000,000;  our 
exi)ort  trade  amounts  to  about  $10,000,000.  The  method  of  collection 
of  revenue  is  by  im])osition  of  an  export  duty. 

Jtthen  appears  that  the  amount  of  the  food  supply  Avhich  we  send 
to  Brazil  is  not  nuich  greater  than  the  export  «luty  on  goods  sent  to 
Anu^rica.  It  would  thus  a])pear  that  there  would  always  be  a  reasonable 
method  of  the  lenient  exercise  of  the  lex  talionis  to  enforce  a  conuner- 
cial  compact  which  w(mld  i)lace  the  American  producer  in  direct  touch 
with  the  Brazilian  consumer. 


KECIPROCITY   STATEMENTS. 


305 


.XTRACT   l-UOM   LirrTKU   WKITTKN    IN    KIo  1>K  .IAXKIHO,   lll!A/II.,  .lAXfAHY  10,  18<)fi,  BY 
MESSas.  l.EVElU>'«i  A  to.   lO   MKSftKS.  K.  l-KVKlUMi  A  t(>.,  HALTl.Mt>UK,  .MI>. 


ates 

)Utll 

lop- 

the 
)ina- 

her 
itisli 
iieiit 
itry. 
ts  to 
ot.  to 
inau- 
^r()ln 

to  of 
iS  for 

our 
'tiou 

Isend 

\\t  to 

[able 

liner- 

)UcU 


Flour. — Wo  were  stiiitli'il  a  few  (lavs  iif^o  to  rcrpivo  rcliiililc  iiil'ormiitioii  that  the 
(iovciiiiiieiit  railroaiLs  havf.  (liscriiiiiiialcil  lar>rcly  in  (heir  l'rci;;ht  ^at^^s  iu  favor  of 
lloiir  i^ioiiikI  here,  tlic  latter  paying  loss  than  oiui-third  of  wliat  is  coilecti-d  on  Auior- 
ican  tloiir.  Tliis  is  fortaiiily  one  of  tho  grossest  iiijiistiirs  cvtT  lii-on;;lit  to  onr  noticti, 
and  if  cont  iniit'd  will  result  in  tho  iitttT  annihilation  of  thf  Anu'vica;  ''onr  trado  in  this 
country.  Tho  ineroast^  in  the  duty  from  2\  rcis  jior  kilo  to  \i2  rein  por  kilo,  oouplod 
with  ihc  entirely  free  entry  of  wheat — the  former  expedient  tax  of  10  per  cent,  on 
the  latter  havinu;  been  aholished  in  the  new  tarilV — is  in  itself  a  disad\  anla^i;  which 
it  seems  almost  iin]H)s8il)le  to  overcome  ;  theridore,  under  the  exist  in;j  conditions,  we 
consider  that  wecan  no  Ioniser  comj)ete  witlithe  nativ<i  mills.  We  tliorefore  tried  to 
explain  tliis  to  yo-i  by  eal)le  on  tiio  7th  instant,  reconuiiendinf;;  to  you  to  discontinue 
th<'  shippinfi,  as  in  our.jud;jnient  notliinj;'  but  loss  can  lie  the  result.  This  matter  is 
a  \eiy  serious  blow  to  us,  ;ind  no  doubt  to  the  lialtiniort?  tracb^  in  j^eneral,  but  wo 


ha\e  not  jj;i\i'n  m]>  liojies  yet  to  obtain  a  recmisideration  trom  the  (foverniuent,  )iar- 
ticularly  in  the  mtitter  of  dillerential  freight  rates,  if  not  in  the  duty  (lucstioii  also, 
and  have  addreabed  Mr.  Thompson,  our  luiiiibter,  on  the  subject. 


State  Board  of  A<jriculture  of  ycir  Jersey. 

Freehold,  2[arch  L^o,  189ii. 

]My  Dear  Sir:  The  conimittee  representing  the  farmers  of  Xew 
Jersey  which  api)earetl  bel'ore  your  Committee  on  U'iiys  and  ]\reaiis, 
rehttive  to  reciprocity  with  Cubii,  appreciate  your  willinj^ncss  to  hear 
them,  and  courtesy  extended.  V\)  to  the  time  of  the  abrogation  of  the 
Cuban  reciprocity  treaty  Mr.  Scliancli  was  a  stroiij;'  Democrat.  Since 
that  time  he  has  been  it  strong  licpubUcan.  I  behev^e  the  abolishing 
the  reciprocity  is  what  placed  New  Jersey  in  the  Kei)iiblican  ranks.  1 
sincerely  hope  the  reciprocity  may  be  renewed. 
Yours,  very  truly, 

I).  J).  Denise. 
:\Ir.  A.  J.  UOPKOS.  >r.  C, 

Wdnhington,  D.  C. 


Xicliolsun  File  Company,  rrorldcnvc,  R.  L 

Keciprocity  was  a  thing  of  such  short  life,  after  its  birth  in  ISDO,  that 
the  nation  had  no  chance  to  test  its  merits,  ;ind  one  ctin  not  do  mu(^h 
more  than  express  an  opinion  in  speal<ing  of  it,  as  there  was  hardly 
time  to  learn  nuu'h  about  facts  and  figures,  and  it  is  these  tests  that 
hav'ti  got  to  be  a])plied  to  ascertain  the  value  of  any  such  jxilicy. 

Our  own  o])inion  is,  that  there  are  a  nund)er  of  countries  with  which 
reci])ro<!i';y  of  tiade would  bean  adviintageto  us,  and  that  a  lawwhicli 
woiihl  permit  such  reciprocity  shoiUd  be  ui)on  the  national  statutes. 

VV(5  are  sadly  deticieut  in  means  of  transj)ortatioii  and  in  banking 
facilities  with  Just  those  countries  wiiere  reciprocal  trade  is  desiral)le, 
and  the  Englisli,  French,  and  Germans  have  so  nutch  the  start  of  us 
in  most  of  them  that,  with  all  the  advantages  ])ossil)le,  considerable 
time  and  money  will  have  to  be  invested  to  nudce  even  reciprocity  a 
success.  33ut  these  things  will  right  themselves  if  there  is  any  show 
the  venture. 


iiir  profit  on  tl 
H.  Rep.  21>G3- 


;  '■'  HI 


'! 


i       > 


-20 


IS  ' 


'i'. 


|3 


306  RECIPROCITY   STATEMENTS. 

The  Goulds  Mmmfacturing  Company,  Seneca  Falls,  X.  Y. 

"We  are  very  much  pleased  to  know  that  the  Houoe  is  taking  up  this 
question  of  reciprocity  and  commercial  treaties,  which  we  ho])e  can  he 
brought  about  so  that  we  shall  have  the  same  arrangement  as  was  in 
vogue  during  the  Harrison  Administration. 

You  will  note  from  our  letter  head  the  full  address  of  our  firm  and  the 
goods  we  manufacture.  We  have  a  market  for  our  pamus  both  at  homo 
and  .abroad;  we  cultivate  the  latter  very  largely.  Our  business  is  done 
both  direct  and  through  commission  houses,  but  to  a  very  large  extent 
through  the  latter.  We  had  au  agent  traveling  in  Enrope  for  seven 
years,  but  of  late  have  withdrawn  him  from  so  doiag  because  of  the 
unprofitableness  and  the  competition  which  we  met  irom  foreign  manu- 
facturers.^ In  France  we  were  debarred  entirely  from  transacting  busi- 
ness. We  opened  an  agency  there  several  years  since,  but  the  tarift'  is 
so  very  high  that  it  is  impossible  for  our  agent  to  compete  with  the 
local  manufacturers,  and  consequently  he  has  a  very  large  stock  on  hand 
wh'ch  he  has  been  unable  to  sell. 

We  are  most  decidedly  in  favor  of  a  renewal  of  the  customs  arrange- 
ment and  commercial  treaties  that  were  in  AOgue  under  the  Harrison 
Administration,  and  we  hope  they  can  be  put  in  force  again. 

The  CO  istant  tendency  of  our  manufactured  goods  is  to  decline  in 
price.  Competition  is  very  itvong  in  this  country,  and  everybody  wants 
to  get  in  the  forei;^n  trade,  and  to  accomplisii  this  they  reduce  their 
prices.  AVe  have  no  trouble  whatever  in  competing  with  the  Knglich 
manufacturers.  Our  strongest  competitors  are  with  the  Germans  and 
Avith  the  French  in  their  own  local  markets.  AVe  export  no  go«Hls  what- 
ever to  Germany  nor  to  France.  Our  foreign  business,  we  think,  has 
decreased  during  the  i)ast  six  years,  and  particularly  in  those  countries 
with  whom  we  had  reciprocity  orrangements. 

The  replies  that  wa  Lave  made  to  your  circular,  you  will  notice,  are 
of  a  general  character  and  do  not  give  you  the  tabulated  statement 
that  in  many  instances  you  request,  and  1  regret  it  is  inj possible  for  us 
to  favor  you  Avith  same.    AYc  liaAC  in  our  employ  about  400  hands. 

In  our  judgment,  we  know  of  nothing  thnt  had  a  tenden<'y  to  stimu- 
late business  in  this  country  like  the  commercial  treaties  arranged  by 
jNlr.  Blaine.  Whav  it  seems  to  me  we  want  in  tlie  United  .States  is  to 
cultivat43  business  with  our  southern  neighbors — that  is,  Alexico.  Central 
and  South  Ameiica;  a. ul  whatever  is  necessary  to  be  done  to  accom- 
1  'ish  this  our  Government  will  certainly  be  farsighted  in  i>ursuing  in 
order  to  do  everything  in  their  jwwer  to  bring  to  us  the  business  from 
these  countries.  We  are  certainly  entitled  to  this,  and  whatever  is 
necessary  by  which  to  accomplish  it  is  only  a  liberal  and  patriotic 
course. 


Xorton  Bros.,  Chicaf/o. 

We  are  decidedly  in  favor  of  the  api)lication  of  the  recii»r(»city  prin- 
ciple to  future  taritf  legislation. 


James  A.  Ware,   \\  liiitcastU:  Louisiaua. 

2.  A  sugar  i»lantcr  by  occui>ation,  running  therewith  a  strictly  i»lan- 
tation  store.,  dealing  in  Anu'rican  goods  only. 


V. 


'The  iii(<st  impoitant  oouipetitioii  thiU  wo  liavf  !;<  lioui  the  Ueriiuin  iiuuiufHctiirers. 


liECirROCITY   STATEMENTS. 


307 


tliis 
u  be 
IS  in 

Itlie 

loine 

done 

stent 

i,eveii 

if  the 

imuu- 

busi- 

riff  is 

tb  tiie 

I  baud 

range- 
Lirisou 

line  in 
wants 
e  tbeir 
ingUsb 
ns  and 
s  wbat- 
iik,  bas 
viu  tries 

ice,  are 
lenient 
for  us 

Ids. 
stinni- 
o-ed  by 
es  is  to 
'entrai 
acconi- 
luinp;  in 
Iss  from 
ever  is 
itriutic 


V  i>riu- 


3, 4.  Do  not  deal  in  foreign  goods. 

5,  (),  7.  The  McKinley  tariff  a(!t  of  1890,  removing  the  duties  on  raw- 
sugars  and  giving  a  bounty  to  American  producers,  reduced  tbe  price 
of  oirr  product  practically  to  the  same  extent  as  the  duties  removed. 
The  reciprocity  treaties  provided  for  in  that  act  and  carried  out  by  the 
President  were  unquestionably  of  great  benefit  to  the  producers  iu 
this  country  of  such  important  articles  as  corn,  wheat,  Hour,  and  meats. 

8.  jMy  production  of  sugar  is  about  25  per  cent  greater  than  six  years 
ago,  and  the  reduction  in  price  is  about  33  per  cent.  . 

9.  Sugar  worth  a|  to  oi  (;onts  in  1890  is  worth  4  cents  to-day.  ■ 

10.  Tlic*  German  export  bounty  on  sugar  is  very  detrimental  to  the 
interest  of  producers  in  America. 

12.  As  stated  above,  the  effect  of  the  reciprocity  treaties  of  1890 
were  favorable  to  the  exporters  and  i»rodu'jers  of  some  of  the  largest 
overproduced  articles  of  the  American  farms. 

13.  In  my  hamble  opinion,  tbe  treaties  as  provided  for  in  tlie  act  of 
1890  wero  exceedingly  wise. 

Protection  to  the  American  irduptries  by  way  of  judicious  tariff"  laws 
is  protection  to  American  labor.  Diversified  crops  and  diversified 
manufacturing  gives  activity  to  capital  and  opens  up  new  fields  for  the 
laboring  man.  A  general  discussion  or  a  full  expression  of  my  views 
upon  the  tariff  ([uestiou  would  i)robably  exceed  my  privilege  at  this 
time. 


Iv  plan- 


itnrers. 


Louis  Contencin  tO  Son^  Xeic  lorA*. 

March  23,  1896. 

Some  thirteen  or  fifteen  years  ago  the  Secretary  of  the  Treasury 
re<iuested  merchants  to  express  their  views  on  the  tariff,  which  views 
were  ]»rinted  in  book  form  jirior  to  the  act  <>f  1883.  Our  sei'ior,  then  a 
member  of  th?  firm  of  Messrs.  Frederick  S.  liobinson  vS:  Co.,  recom- 
mended '■  reci]»rocity.'' 

Wlien  the  Mclvinley  bill  was  before  the  Finance  Committee,  we 
recomuionded  iigain  reciprocity  in  a  communication  to  ex-Senator  the 
Honorable  Frank  Hiscock,  of  s.aid  committee. 

>'()  better  example  can  be  cited  as  to  the  benefit  of  reciprocity  than 
the  serious  losses  sustained  by  both  France  and  Italy  by  the  rupture 
of  tlie  commercial  treaty  between  the  said  two  countries.  To  Italy  it 
proved  to  be  almost  a  national  disaster,  and  which  is  a  matter  of  history. 

What  we  claim,  liowever,  is  tha<",  wlien  revisi<ms  of  taril"  are  made 
and  duties  are  rednced, those  nations  benefited  thereby  should  recipro- 
<'ate,  there  being  no  sense  in  giving  millions  away  without  pny  return. 
Our  motto  should  be.  "(live  and  take." 

Onr  senior,  although  not  a  dii»lomat,  succeeded  in  having  the  Jtalian 
Government  voluntarily  revoke  the  decree  against  our  pork,  which  so 
much  helped  the  past  AdministraHon  i-i  the  negotiations  wirh  other 
nations  that  it  was  so  acknowledged  in  an  editorial  in  the  New  York 
Tribune.  Italy  was  fairly  treated  in  the  McKinley  bill,  and  thus 
.allowed  her  apjn'cciation.  We  iiicnt  ion  said  fact  as  a  proof  that  toreign 
Governments  will  listen  to  reason  and  are  willing  to  reciprocate. 

If  amateur  diplomacy  met  with  success,  real  diplomacy  will  work 
wonders,  with  the  additional  advantage  that  more  cordial  and  friendly 
relations  will  be  established  between  our  i>eople  and  the  people  of 
other  nations,  and  between  (Mir  Go\ernmeiit  and  other  gov^'mmiuits. 


4 


1 


^ 


308 


RECIPROCITY   STATEMENTS. 


We  respectfully  beg  to  suggest  the  adoptiou  of  Senator  Pettigrew's 
j)erinaiient  couimissionon  taiiil",  with  the  odclitional  power  to  saideoiu- 
Hiission  to  take  preliiiiiiiary  steps  Avith  foreign  governineuts  towards 
establivshing  coinmeroial  treaties.  The  keynote  should  be,  reasonable 
])rotection  to  our  products  and  our  industries  toward  those  nations  will- 
iug  to  exchange  commodities  and  reciprocate. 


Xew  York  and  Cuba  Mail  Steamshij)  Company. 

2.  r>ahaina  Islands — Nassau. 

Cuba — Havana,  Oienfuegos,  vSantiago  de  C'lba,  ^Mirnzanilh),  and  (xuau- 
tananio. 

Mexico — Vera  Cruz,  Tampico  (connecting  wiih  auxiliary  service  to 
Alvarado,  Tlacotalpam,  ami  Coatzacoalcos),  Tuxpani,  Pi-ogreso,  Cam- 
peche  (connecting  with  auxiliary  service  to  Frontera  and  Laguna). 

4.  Wehave«!xtended  our  service  and  perfected  through  traflic  arrange- 
ments with  connecting  lines  reaching  interior  jmints,  thus  providing  an 
improved  transportation  service.  Avhich  has  materially  increased  the 
volume  of  business. 

5.  The  laws  and  regulations  in  Cuba  governing  the  manifestation  of 
goods  from  the  Ignited  States,  and  the  lines  imposed  on  our  steamers 
but  not  upon  those  from  foreign  i)orts,  have  diverted  shipments  and 
greatly  reduced  onr  trade  in  Cuban  markets. 

('».  With  the  abrogation  of  the  reciprocity  treaty  between  the  United 
States  and  Cuba,  imports  from  this  country  have  been  made  (•iibject  to 
the  highest  rates  of  duty.  This  has  taken  away  our  trade  in  railroad 
iron,  cars,  locomotives,  machinery,  etc.,  and  has  almost  killed  the  trade 
in  Hour,  i^rovisions,  and  i)roduce. 

7.  The  reduction  of  duties  on  provisions,  cereals,  and  produce  would 
restore  the  trade  to  the  United  States.  In  flour  alone  our  trade 
would  increase  500  per  cent.  On  otlier  products  the  volume  of  tralHc 
A»ould  be  nuiny  times  greater  than  it  now  is. 

8.  The  volume  of  business  was  more  than  (hnibled  under  reciprocity 
arrangements.  The  Statistical  liureau  ol"  the  Treasury  Department 
Mill  contirm  this  statement,  and  also  demonstrate  how  the  business  has 
since  fallen  olf,  but  it  can  not  show  to  what  extent  our  trade  with  Cid)a 
would  have  increased  had  the  inllucnce  of  reciprocity  contiiuied  a  few 
years  longer. 

0.  The  nmrket  prices  can  be  better  lurnislu'd  by  houses  in  the  trade 
which  we  have  named  to  you,  but  we  believe  commodities  used  in  ( 'uba 
and  ]\rexi<'o  have  been  re<lu(ed  from  1*5  per  cent  to  50  jier  cent  during 
tiie  last  six  years. 

10.  Tlie  cost  of  labor  paid  by  foreign  manul'acturers  enable  them,  in 
many  instances,  to  land  the  mercliandise  at  the  ])orts  of  Cuba  more 
cheaply  than  can  be  done  by  Ameri(Mn  niaiuifactuicrs.  Hut,  witli  tlie 
advantages  enj(»yed  by  American  manut'actuiers  and  ])r()(lucers  under 
reciprocity  arranged  with  th(>  island  ol"  Cuba — where  the  balances  of 
trade  was  so  nnich  against  us — they  were  emd)le<l  to  gradually  increase 
their  exjmrts,  thus  ciieai)eniiig  th<^  cost  of  i)roduction. 

11.  The  nature  of  our  business  does  not  call  foi- a  rei)ly  from  us  to 
this  (juestion. 

V2.  The  reciprocity  treaty  enabled  us  to  double  our  tonnage-carrying 
capacity  to  Cuba,  and  yet  carry  full  cargoes.  Its  abrogation  left  us 
with  the  increased  tonnage-carrying  capacity,  but  with  less  than  half 
cargoes. 


RECIPROCITY   SrATEMENTS. 


309 


lid  coin- 
to  wards 
,souiiblo 
)ns  will- 


13.  We  strongly  favor  the  reciprocity  principle  and  favor  its  applica- 
tion so  far  as  it  is  ]>ossible  to  do  so. 

Wo  have  carefully  refrained  from  giving  iignres,  as  the  statistical 
data  which  is  available  from  the  Treasury  Department  is  broader  and 
more  authentic  than  can  be  se(;ured  elsewiiere. 

Should  any  further  statements  or  e':i>lauations  be  desired  by  your 
committee,  our  services  are  at  its  dis])osal. 


iddium- 

ervice  to 
>so,  (,'am- 
Lina). 
larrange- 
v^iding  an 
vdsed  the 

station  of 

steamers 

aents  and 

he  United 

subject  to 

11  railroad 

the  trade 

luce  would 
our  trade 
of  traffic 

lecipvocity 
'partmeut 
dness  has 
kvithCnba 
lued  a  few 

1  the  trade 
Id  in<'uba 
jilt  during 

them,  in 
|\ba  more 

with  the 
lers  uikU'v 
lalance-  of 

increase 


lorn 


us  to 


■carrying 

\n  left  us 

hail  half 


Li/man.srinc  Companxi^  J'roriflencr,  E.  I. 

TJeciprocltj'  is  the  only  and  true  principle  under  which  the  T'nitcd 
States  of  America  can  permaiienily  enlarge  its  foreign  trade,  aii<l  thus 
directly  increase  the  business  of  those  producing  goods  or  staples  for 
export,  and  beiielit  indiret^tly  all  branches  of  business  as  well  as  labor. 

A  twenty  years' uninterrupted  trial  with  a  Mclvinley  tarifl'  bill  in 
addition  will  make  the  LTnited  States  not  only  the  first  agvicultuial, 
but  the  first  manufacturing,  nation  of  the  univ^  rse,  and  ^ew  York  the 
monev  center  of  the  world. 


B.  Ayrcti,  Phihuhlphin,  Po. 

I  am  decidedly  in  favor  of  the  reciprocity  princinle  and  commercial 
treaties,  and  trust  they  will  receive  favorable  consideration  by  Congress, 


Ountaro  Xicderh'iit — The  Philadelphia  Miisnims. 

In  reidy  to  your  circular  letter  of  March  4, 1  beg  to  state  that  lor  the 
next  thirty^  days  it  will  be  impossible  for  me  to  ap|)ear  before  your 
honorable  body,  having  in  charge  tl:e  (»rgani/.ation  and  installation  of 
the  Commercial  and  Economic  Museum  of  the  city  of  Philadelphia. 
There  are  60,000  products  from  nearly  forty  ditt'erent  countries  to  be 
installed  before  the  1st  of  IVlay. 

In  regard  to  the  recii)rocity])olicy  inaugurated  under  the  tariff  act  of 
lSi)0,  and  abandoned  by  the  Fifty-third  Congress,  a  few  remarks  will 
illustrate  my  o])ini<)n  as  far  as  the  Argentine  Kcimblic  is  coaccriied. 
The  Argentine  l^ej^nblic  has,  in  general,  a  low  tai  iii'  for  all  jiroducts, 
AVhich  are  mostly  im])orted  f"":n  the  LTnited  States.  In  my  oi>inion, 
these  tarifi's  on  ]»ctioleiiin,  wood,  agricultural  implements,  macliinery, 
lard,  etc.,  can  not  be  lowered,  the  revenues  ot  the  (iovciiiinent  mostly 
<lepending  n])on  imj)ort  duties.  1  can  not  see  how  the  United  States  of 
America  could  be  more  favored.  A  change,  for  instance,  on  the  tariff 
of  wool  could  only  induce  the  Argentine  ifepublic  to  place  a  high  laritf 
on  ])etro]eum  and  agricultural  iini)lcments,  wood,  and  machiiK'iy  that 
might  be  imported  from  ihe  Cnitcd  States,  it  is  against  all  prcccdiMits 
to  lay  such  exceptional  tarifi's  in  the  Argentine  liepublic,  and  I  am  sure 
that  if  the  United  States  should  make  im])ossil)le  th«^  importation  of 
Argentimi  wools,  the  Argentine  wool  export  would  not  sutfei 
entirely  t»)  iMiro])e. 

To  be  sh<u-t.  the  Argentine  I'eimblic  does  not  depend  upon  the  tariff 
policy  of  the  Cnited  States  and  will  look  with  more  or  less  indifference 
ui).ai  changes. 


going 


i 


310 


RECIPROCITY    STATEMENTS. 


But,  on  the  other  hand,  1  can  only  recommend  to  your  honorable 
committee  to  do  everything  to  secure  the  South  American  markets, 
which  are  very  large  and  very  profitable,  increasing  every  year.  I  also 
re  ommend  to  look  after  facilities  for  direct  imports  from  Soirtii  America 
of  raw  stuffs. 

In  order  to  make  the  ^lonroe  doctrine  a  profitable  one»  it  would  be 
wise  to  favor  all  South  and  Central  American  countries',  making  s[»ecial 
tariffs  fortlu'ir  raw  products  imported  to  the  United  States,  and  giving 
subsidies  to  new  steamship  lines  in  order  to  make  the  freight  chca])er 
and  trade  possible.  I^',  for  instance,  the  United  States  wouUl  put  back 
a  higher  tariff  on  avooI,  I  would  recommend  to  make  it  a  little  lower  for 
wools  from  the  Argentine  Eepublic,  Uruguay,  Peru,  Chile,  etc,  and  in 
this  Avay  exclude  the  wools  from  Australia  and  Africa.  In  other  words, 
1  would  reconunend  to  favor  all  American  countries  alike  and  nuike 
only  reciprocity  "reaties  Avith  <>  un tries  of  other  continents. 


^i 


Thr  Rcplof/le  Gorenior  Wor1<s.  Almn.  Ohio. 

I  would  say,  by  all  means  encourage  reciprocity  in  trade,  not  only 
among  ourselves,  but  with  foreign  nations.  Every  business  man  recog- 
nizes this  principle  in  his  own  affairs.  Other  things  being  equal,  lie 
will  buy  of  parties  wlio  patronize  him.  It  is  the  old  boyish  trick,  "You 
tickle  nie  and  I'll  tickle  you."'  It  holds  good  the  Avorld  over,  and  in 
politics  no  less  than  in  business. 

So  long  as  Ave  are  to  have  a  "i>rotective  tariff,"  let  the  Executive  have 
the  authority  to  negotiate  reci[)roclty  treaties.  We  ought  to  have  a 
reciprocity  treaty  Avith  our  nearest  neighbors,  particularly  with  CanacUu 
Englaml  has  been  very  liberal  in  such  matters  and  has  built  its  enor- 
mous commerce  on  the  highest  and  best  form  of  reci[)ro('ity;  in  fact, 
has  gone  a  little  farther  than  \vhat  your  committee  perliaps  considers 
reciprocity.  In  other  Avords,  it  has  opened  its  doors  wide  Avithout  stop- 
ping to  ask  Avliether  other  nations  Avill  reciprocate  or  not. 

England  is  America's  best  customer,  and  business  men  always  give 
their  best  customers  the  A'ery  best  of  goods  and  on  tiie  best  terms  that 
they  allow  anyone.  Why  should  Ave  not  reciprocate  Avith  England  in 
this  matter  as  Avell  as  Avith  (^'anada,  ]Mexico,  and  Soutli  AnuM'ican  Kepub- 
lics.'  Yes;  by  aK  means,  give  us  reciprocity.  It  will  luisteu  the  <lay  at 
least  of  a  revenue  tariff,  if  not  absolute  "free  trade."' 

The  country  owes  a  great  debt  to  the  lauiented  131aiiu»  for  tlie  sugges- 
tiou  of  that  Avord  ''reciprocity." 


Fred  A.  Wood,  W  Inter  port ,  Me. 

I  am  of  the  opinion,  and  think  it  general,  that  reciprocity  is  a  sound 
business  i)rinciple.  We  sell  our  jiroducts  and  admit  what  we  do  not 
produce,  and,  so  long  as  we  produce  more  than  we  cojisume  on  such 
articles,  avo  need  protection.  If  necessary  our  Ciovernment  should  aid 
trausportation  lines  to  countries  that  Avill  buy  our  products. 


!     ,  i 


RECIPROCITY    STATEMENTS. 


311 


onorable 
markets, 
r,  I  also 
America 

would  be 
o-  special 
id  giving 
b  clicaper 
l)ut  back 
lower  for 
('.,  and  ill 
er  words, 
iiid  make 


>.  not  only 
nan  recog- 
•  equal,  lie 
You 


•ick,  " 
^er,  and  in 

iitive  have 
to  have  a 
li  Canada, 
t  its  enor- 
,-;  in  fact, 
(  onsiders 
unit  stop- 

[vays  iiive 
Jerms  that 
Ingland  in 
lui  llepub- 
]hc  day  at 

Ic  sugges- 


a  sound 
|e  do  not 

on  such 
liould  aid 


Jac.  Trautmdn  tO  Co.,  New  Orleans. 

Keciproeity,  if  practiced  so  that  each  of  the  contracting  parties  shall 
be  mutually  aiul  e([ually  benefited  by  it,  would  be  a  grand  thing  for  a 
country  like  ours,  and  wo  would,  under  such  coufiitions,  have  no  hesi- 
tancy in  indorsing  its  immediate  inauguration  by  the  (lovernment  of 
the  I  iiited  States '^vith  every  country,  civilized  or  uucivili/ed,  on  the 
face  of  the  globe. 

Iteciprocity  means  to  exciiange  by  trafllc  one  article  for  another.  'No 
country  in  the  world  is  better  situated  than  the  Tnited  States  to  enjoy 
the  fruitful  results  of  such  exchange  of  commodities.  It  is  useless  to 
enumerate  the  various  articles  niiiuufactured  and  produced  in  the  vari- 
ous sections:  -f  our  grand  Ivepublic,  and  all  suitable  for  such  barter,  but 
no  reciprocity  treaty  should  be  entered  into  with  any  country  that  Avould 
not  fairly  execute  its  i)rovisions,  as  far  as  possible,  under  such  treaty. 

To  admit  to  this  country  free  of  duty  articles  of  production  and 
niiinufacture  from  a  country  which  does  little  or  no  bartering  with  our 
country  would  be  a  grave  mistake — as,  for  instance,  that  under  the 
McKinley  reciprocity  law  with  Cuba  and  other  Wesc  India  ishinds. 
The  for  "  "old  to  the  United  States,  if  we  understand  the  matter  cor- 
rectly, 9."»  pel  cent  of  the  sugar  produced  on  the  island,  and  purchased 
very  little  from  the  United  States,  except  some  Hour  and  otht-r  articles, 
in  value  not  exceeding  one -fifth  of  the  amount  paid  for  sugar;  and  even 
tlic  ('X[)oitatiousfrom  this  country  into  Cuba  were  not  absolutely  free  of 
duty,  but  had  toi)ay  considerable  of  an  import  duty,  leaving  the  balance 
of  the  trade  heavily  against  this  country;  and  it  must  be  remembered 
that  the  sugar  industry  of  the  United  States  was  in  a  measure  i)ara- 
]y/ed  l)y  the  introduction  of  free  sugar,  while  the  industry  in  Cuba  and 
other  countries  was  proportionately  stimulated. 

To  make  reciprocity  acceptable  and  benelicial  to  the  country  as  a 
whole.  Congress  should  put  aside  politics,  and  honest  statemanship 
shiiuld  be  substituted.  Our  commercial  intercourse  with  such  countries 
as  embraced  the  benetlts  of  reciprocity  can  only  be  increased  by  estab- 
lishing upon  a  tirm  basis  well  (Miuip])ed  fast  steamers  to  idy  between 
this  and  such  countries  under  th  3  I'liiled  States  tlag,  and  in  order  to 
sustain  such  lincsof  steamers  Congress  should  be  liberal,  and  by  subsidy 
maintain  such  lines  until  they  are  self-supporting  by  the  increased 
business. 


lite  lianus  Mimufacturintj  Company.,  McnsficJd.  Ohio. 

In  reply  wiMild  say  that  if  we  hid  a  3IcKinley  i>rotective  tariff  and 
a  J.  G.  IJlaine  recipnxuty  arrangement  the  manufacturers  of  this 
coiintr\'  could  take  care  of  themselves,  and  in  our  opinion  this  is  about 
the  only  way  that  the  home  market  can  be  protected. 

Now  is  the  time  for  manufa(;turers  to  make  a  special  efi'ort  to  secure 
trade  relations  with  the  ditferent  countries  in  South  America,  and  this 
c(»uld  doubtless  be  better  brought  about  if  our  (lovernment  either  con- 
trols or  subsidizes  a  line  of  vessels  to  those  countries. 

During  till' i»ast  three  years  the  trade  in  our  line  has  been  buying 
from  liaiul  to  mouth,  but  i)revious  to  that  time  they  placed  much 
larger  orders,  which  gave  the  manufacturers  an  op])ortunity  to  base 
their  ('alculations  in  making  purchases.  Previous  to  the  last  three 
years  the  selling  price  enabled  the  manufacturer  to  have  a  retisonabh; 
prolit,  but  during  the  last  three  years  the  margin  has  been  extremely 
close,  which  I  think  is  largely  broutiht  about  by  a  lack  of  conlidence 
owing  to  ihe  change  in  the  tariil  bill. 


*^- 


3   s. 


312 


RECIPROCITY    STATEMENTS. 


Statement  of  Mr.  F.  B.  Thurber,  New  York  Cit}/. 


lam  olmirman  of  the  coinmittee  on  foreign  comniprce  of  tlio  Clianiber 
of  Commerce  of  the  State  of  New  York,  and  presi(UMit  of  the  (iiited 
States  Mxport  Association,  which  is  a  union  of  American  i)ro(lucers, 
nianul'acturers,  and  merchants  to  encourage  the  consumption  of  Ameri- 
can products  in  other  countries. 

Some  years  ago,  vldle  on  a  voyaj?e  around  tlie  world,  I  made  the 
accjuaintance  of  an  Knpiisli  cotton  manufacturer  in  Bombay  who  toUl 
me  of  the  wonderful  develo])Uient  of  cotton  manufacture  in  India  and 
prophesied  tl\at  they  would  soon  be  sui)i)lyinjj  all  the  cheap  cotton 
goods  used  in  the  lOast.  J  told  hini  I  had  just  come  from  China,  where 
American  cottons  were  taking  the  maiket  for  fine  goods,  because  they 
were  imt  loaded  with  clay  like  the  P^nglish  goods,  and  I  said.  "Well,  if 
you  take  the  market  for  cheap  goods,  and  we  for  tine  goods,  what  are 
the  Lancashire  manui'acturers  going  to  do?"  "Oh,"  said  he,  "the 
mother  country  will  open  up  Africa  and  make  it  the  fashion  to  Avear 
breech  clouts."  And,  ]\Ir.  Chairman,  that  is  precisel,y  what  British  states- 
manship has  been  doing  ever  since.  Every  effort  of  an  English  manu- 
facturer to  reach  newnmrkets  finds  a  ready  response  on  the  part  of  the 
Ikitish  IJoard  of  Trade — a  department  of  the  (lovernment — to  support 
him.  Diplomacy  is  not  above  advancing  trade  interests.  Force  is  at 
hand  to  juotect  the  rights  of  traders.  Liberal  i)ay  is  accorded  to  stenra 
lines  for  tlie  carriage  of  ocean  mails,  and  the  entire  national  influence 
is  constantly  exerted  in  this  direction. 

At  the  November  meeting  of  the  New  York  Chamber  of  Commerce 
the  comnnttee  on  foreign  commerce  submitted  the  following  report, 
which  was  adopted  unanimously: 

I'o  the  Chamber  of  Commerce: 

The  events  of  the  past  year  furnish  some  object  lessons  to  American  producers. 
maiiufncturcis,  and  niercliaiits  wliicli  are  Avurtliy  of  ni()r(>  than  jiassinir  CDnsidcration. 
'J'lie  war  in  the  lOast  has  prohahly  inan<:;nrated  a  new  ejiocli  for  hundreds  of  millions 
of  i)e()7)le.  The  jiartition  and  oi)eninjj  up  of  Africa  is  scarcely  less  inijiortant  in  its 
ultimate  results  to  connnerco.  Thus  far  out  increase  in  ])oi)ulation  and  wealth  in 
this  country  has  nu'asurahly  lce])t  consunijition  on  a  ]>arity  with  production;  but 
evidences  are  not  lackin<^  that  this  state  of  things  can  not  coTitiiMie.  If  we  would 
keep  stej)  to  the  music  of  the  times,  and  keej)  our  labor  anil  cai)ital  reinuneratix  ely 
employed,  we  must  bear  in  mind  the  wants  of  the  other  I.IJTO, OHO. 0(^0  of  ])(>(, (ile  who 
constitute  the  j)o)Milation  of  the  world — both  natural  and  creative  or  educational 
wants.  Thc'iC  are  .--ome  encourafjiu!.;'  sii^na  that  our  peoi>le  are  not  insensible  to  this. 
The  la\'or  wiih  which  the  etforts  to  create  a  new  navy  and  build  u]t  a  couuuercial 
marine  have  been  urcctcil  is  an  earnest  of  times  when  the  American  lias  m!>y  a<;ain 
be  seen  lloatinir  in  all  ]iarts  of  the  world.  The  !:;enius  of  our  inventors  is  every- 
where rccoi^ni/cd.  the  i|uality  of  our  jjroducts  everywhere  commended.  If  we  are 
true  to  our  traditions  and  apineciativc  of  out-  opportunities,  the  United  States  will 
lead  the  world  in  the  rac(^  for  conuuercial  suprcnuicy. 

The  following  resolutions  arc  respectfully  subniittcd: 

Jiexolrvil,  That  in  rhe  opinion  of  this  chamber  th(>  ])resei.t  y(>ar  marks  an  e]>och  in 
comiiieri'ial  history;  that  the  present  is  a  time  worthy  of  the  best  (dl'orts  of  our  i)ro- 
ducers,  manufacturers,  and  merchants  to  exten<l  the  export  traile  of  the  I'nited 
States,  and  that  these  elforts  should  be  su])i>orted  by  a  wise  and  jirouressive  jiolicy 
on  the  jiart  ol'  our  (iovi-mment.  The  i)rinciido  of  reci])rocity  should  be  rcco;iuizcd 
in  our  diplomacy:  our  consular  scivice  be  contridled  by  civil  service  rules  and  .ade- 
(juatel.v  <'oinpcusated,  and  our  carryinjj;  trade  lie  fostered  as  i'ar  as  jiossiblc  by  liberal 
pay  for  the  carriajjc  of  nuiils  on  the  ocean  as  on  hind. 

JU'nolrcd.  That  the  step  recently  taken  by  the  present  Administration  in  the  direc- 
ti(ui  fif  jdaciuir  a  jiortion  of  our  consular  service  on  a  business  basis  is  worthy  of  all 
commendation,  and  should  be  followed  as  fast  as  practicable  by  further  steps  in  the 
same  direction. 


If' 


KECIPKOCITY   STATEMENTS. 


313 


Edward  II.  Ilashll,  Amcricdn  I'Kpcr  Mahrrs'  ANsoriatio)!. 


ianil)er 
I'liitcd 
lucovs, 
Allien- 

do  the 
iio  told 
.ia  and 
cotton 
,  whore 
so  thov 
^Voll,  if 
liat  arc 
I',  "the 
to  wear 
I  statos- 
i  inaiiu- 
t  of  the 
support 
H'O  is  at 
()  steam 
ithionoe 

mmorce 
report, 


rodiicors. 
deration, 
inillions 
lit   ill  its 
•alth  in 
lou;  but 
,e  would 
rativfly 
()!('  who 
catioTial 
■  to  this, 
liiniercial 
by  aj^aiii 
s  evtTV- 
wc  are 
ites  will 


[Frciiii  an  nfldn'ss 


:!]u)cli  in 
ionr  jiro- 

Initi'd 
Ic  polioy 
lo^iiiizod 
|ii(i  ade- 

liberal 

lo  direr- 
]y  of  all 

Is  in  the 


by  Mr.  Kdwiiiil  11.  Hnskrll. 
ciatioii.  at  Xcw 


if  I'.ostoii,  ticldn 
Voik.  Kfliniarv. 


ilh;'  Aiiu'rii'an  Taper  Makfis'  Asso- 
IW'O.J 


It  soonis  l(>  mo  oni-iiiontly  (h'siraldo  that  this  oroat  industry,  which 
has  attained  so  ])i()i(iinont  a  ])osition.  risiu.u'  in  a  tow  years  tvoxu  tliat  of 
ninth  or  tenth  in  importance  to  the])osition  of  third  in  iiiij)ortance  in 
thi'  fjroat  interests  in  tliis  o(Miiitry.  and  witli  the  ])Ossil)ilitios  of  its 
fuluro  (h'veh)pment,  should  take  some  intellii^ent  action  witli  roleioiice 
to  the  develoi)iii(>nt  of  its  oxjiort  Imsiuess.  Tlie  fjoni lemon  are  aware 
that  (luiin;^'  the  opoiations  of  tlic  reciprocity  features  of  the  last  Admin- 
istration, the  fioneral  ox]iort  of  all  (classes  of  business— all  industries — 
obtained  a  marked  doveloimient,  1  think  somothin<;-  like  $-L'.()i)().(Ml(>  or 
SL,'."),n()0,(MM)  in  two  years,  j^M'owi'ij^' outof  the  ma^niiicent  ent<'i"]»risc  and 
conception  of  the  selienu^  jiresented  by  our  honoi'od  Secretary  of  State, 
]\Ir.  lilaiiio,  and  throujih  which  the  organi/.at  ion  of  tlio  Bnreau  of  South 
American  Itei»ublics  was  established. 

The  present  IM'osident  antagonized  that  special  (lovclojiment  in  tliis 
country,  and  the  recijirocity  features  of  our  intercourse  with  otiier 
nations  wore  io])ealed.  As  a  matter  of  fact,  wo  are  the  losers.  Dur- 
ing the  year  IS!!.")  we  were  the  losers  in  the  matt»"r  (»f  ex])ort  to  those 
countries  to  the  extent  of  $]1.*,()(>0,00().  To  a  ct^rtain  extent  pajier 
entered  into  that  trade,  and  it  seems  desirable  that  in  the  roinaugu- 
ration  of  the  rocipr<»city  scheme  or  plan,  whi(,'h  it  seems  very  certain  is 
alxmt  (o  be  dovoiojiod  by  the  succeeding  Administration — at  least,  I 
have  no  (juestion  but  wlmt  the  succeeding  Administration  which  c<»mes 
into  i)ower  next  year  will  certainly  reestablish  the  rociprocaty  featuies 
of  our  system — ami  it  seems  very  desiralde  that  our  industry  should  be 
placed  in  a  position  to  reap  any  beuetit  therol'ioni. 

Further  than  this,  the  present  Administration  has,  out  of  suggestions 
made  some  three  or  four  years  ago  and  through  suggestions  made  by 
several  of  the  chambers  of  commerce  and  boards  of  trade  of  Boston, 
endeavored  to  place  tlu^  consular  system  upon  a  business  basis:  and 
as  a  de\elopmont  of  that  feature  we  are  likely  to  see,  under  tiio  next 
Admini.stiation,  a  most  thorough  reorganization  of  the  consular  system. 
They  are  to  ojiorate  to  a  certain  extent — as  they  ought  to  do — as  com- 
mercial agents  of  the  industries  and  manufactures  of  the  United  States. 
Those  who  have  traveled  abroad  have  been  tlK>roughly  impressed  with 
the  fact,  and  have  seen  it  also  in  this  country,  that  the  consular  agents 
are  reprosonting  in  another  sense  the  country  which  they  rejirosont — 
that  is,  in  looking  after  tlnMr  commercial  interests.  Is'ow,  it  is  pro])osed 
to  establish  and  to  developo  and  to  organize  on  a  business  basis  the 
consular  system  of  this  country. 

The  National  IJoard  of  Trade,  at  its  last  session,  indorsed  that  propo- 
sition, as  well  as  the  recii)rocity  features  of  our  Administration  in  the 
dovelopmont  of  that  trade:  and  it  is  very  clear  that  a  great  deal  of 
bonelit  will  be  dcived  by  tin;  great  industries  of  this  country  as  the 
result  of  this  reorganization.  It  seems  to  me,  Mr.  President  and  gentle- 
men— and  that  is  the  purpose  of  my  talk — it  siioms  to  nie  desirable  that 
this  association  should  inaugurate  or  originate  or  instruct  its  (>xecutive 
comniitti>e  to  originate  some  system  by  which  we  can,  through  the  State 
Department  and  through  our  consular  servic«',  be  able  to  got  at  all  the 
inforniatiou  that  can  be  made  available  to  the  great  allied  interests  of 
thei)aper  and  inilp  inten^st  of  the  country.  1  have  no  question  but  that 
its  devoloi)mont  <'an  be  largi'ly  increased  in  years  to  come  if  we  enter 
upon  this  in  an  intelligent  manner. 


is 


,1 


us     5 


314 


M 


RECIPROCITY    STATEMENTS. 
fj.  a.  liuruham  cO  rv>.,  Boston,  Mnna. 


Onr  business  is  not  of  a  cliiii-fKitrr  to  bo  directly  affected  by  the  ques- 
tions suggested,  e.\cei)t  tlio  general  one,  No.  L'O.  To  this  we  reply  iu 
tlic  afiirniative,  believing  that  the  principles  of  reciprocity  should  bo 
ai)plicd  wherever  i)ossibl<5  to  every  nation.  We  believe  the  ]»rosi)erity 
of  this  countiy  would  be  greatly  increased  if  reciprocal  treaties  could 
be  entered  into  with  all])arts  of  the  Western  llemispliere. 


The  Plant  Steamshq)  Line,  Port  Tampa,  Fla. 

2.  General  transportation  of  mail,  freight,  and  ])assengers.  llegular 
mail  to  Cuba,  seiniweekly  tor  half  the  year,  triweekly  for  the  balance  of 
the  year.  Also  seiniweekly  nuiil  to  Halifax,  Xova  Scotia,  and,  wheu 
ice  breaks  ni),  weekly  service  to  Prince  Edward  Island. 

o.  ("nba,  Fova  Scotia,  Jamaica;  also  have  in  contem])lation  for  the 
coming  fall  weekly  service  to  Honduras,  Central  America. 

-1.  Tried  to  iind  business  enough  to  warrant  a  line  of  steamei-s  to 
1  londuras,  Central  America;  not  enough  in  sight  yet  to  nuike  it  feasible, 
liun  semimonthly  trips  from  February,  181)4,  to  jNIarch,  1895,  when  route 
was  abandoned.  Had  a  good  fruit  trade  into  this  port,  but  no  exports?. 
Have  also  run  steamers  to  Januiic.i  fc'  *ho  past  six  Avinters  at  a  loss. 
Passenger  trade  fair,  l)ut  no  freights. 

5.  In  Cuba  tind  a  i)rohibitive  taritf  on  American  tlour  and  hay  in  favor 
of  Spain.  The  port  charges  and  other  government  taxes  in  Ilabana  anj 
excessive.  We  pay  each  voyage:  Pilotage,  8'>2;  interpreter,  -S8.r)(); 
fumigating  powder,  84.L'o;  custom-house  charges,  84(5.25;  besides  a  tax 
of  -d  per  head  on  each  passenger  from  or  to  the  country  and  a  tax  of 
one- half  per  cent  on  all  revenues  and  disbursements.  These  port} 
charges  in  ilabana  tor  the  year  18!>5  aggregated  $24,139.  The  discrim- 
inations against  the  United  States  in  the  present  Spanish  taritf  prevent 
shipments  of  any  amount  going  from  here  to  Ilabana,  and  our  freight 
trade  to  that  port  is  very  light,  although  we  do  a  gooil  import  business 
from  there,  i)robably  twenty  times  greater  than  our  exports. 

().  In  the  three  months,  February,  JMarch,  and  April,  1892,  we  exported 
to  Ilabana  4,()()()  tons  breadstutfs  from  the  Western  States.  Tlie  new 
duties  imposed  by  the  government  of  the  Island  of  Cuba  annihilated 
this  business,  whi(;h  gave  promise  of  increasing  to  immense  proportions. 

7.  If  the  above  duties  were  reduced  (u-  removed  the  market  would 
immediately  open  for  a  renewal  of  this  trade,  which  in  volume  would 
greatly  increase  in  time. 

8.  Our  freight  business  to  Ilabana  is  about  20  per  cent  less  than  it 
was  six  years  ago. 

9.  We  are  not  posted  on  prices. 

10.  No  advantage  were  laws  and  tarilfs  impartial  and  the  unjust  ])ort 
charges  as  above  mentioned  done  away  Avith. 

11.  Our  merchants  can  comi)ete  Avith  foreign  merchants  Avithout 
doubt,  provided  taritl'  regnlations  did  not  interpose  such  restrictions 
as  are  now  in  force. 

12.  Under  reciprocity  treaty  with  CuXni  our  export  trade  increased 
steadily.  We  did  not  begin  to  feel  the  effects  materially  until  the  fall 
of  1891,  when  we  increased  onr  facilities  foi-  handling  freight  aiul  busi- 
ness developed  to  the  ligures  before  stated,  liiudly  to  be  ruined  by  the 
change  in  the  huvs. 


y  tlio  ques- 
0  reply  iu 
should  bo 
]nosi)erity 
.ties  could 


Kegular 
biilaiu'C  of 
and,  wlieu 

oil  Ibr  tlie 

leainers  to 
it  feasible, 
vlieu  route 
10  exports. 
>  at  a  loss. 

ay  ill  favor 
[abaiia  are 
ter,  88.r)(); 
ides  a  tax 
I  a  tax  of 
heso  port 
e  discrini- 
tV  prevent 
ir  frei,ii'ht 
business 


exported 
Tlie  new 
uiliilated 
portions. 
et  would 
le  Avould. 

Is  than  it 


ust  ])orfc 

hvithout 
frictions 

Icreased 

Itlic.  filll 

Ml  busi- 

bv  til© 


RECIPROCITY    STATEMENTS. 


315 


13.  Should  our  reciprocity  agreements  with  Cuba  be  renewed  under 
a  general  law  authorizing  the  President  to  negotiate  recii)rocity  treaties 
■with  other  nations,  we  are  certain  that  Ave  couhl  develop  a  trade  of 
2.000  or  .'i,0(K)  tons  per  month.  This  wouhl  warrant  us  running  larger 
ships  to  tliat  port,  and  we  are  satisfied  tliat  there  would  be  a  steady 
increase  in  the  volume  of  business. 

Our  own  (Jovernment  also  imposes  almost  prohibitory  cliarges  on  our 
ships.  We  pay  annually  in  Key  West  for  i>ilotage  $1,800,  custom- 
house charges  from  810,000  to  ><ir).()00,  and  quarantine  expense  82,7aO 
aninuilly  to  the  State  board  of  health  of  l"'lorida. 

The  total  annual  port  charges  against  tlie  shijt  in  the  American  port 
is  about  §15,000  to  820,000,  and  in  the  Cul)an  port  alxmt  82r),00O,  mak- 
ing a  total  of  port  charges  against  the  ship  of  from  840,000  to  8 15,000, 
for  which  we  get  absolutely  no  return.  It  can  thus  readily  be  seen  how 
ditficult  it  is  for  commerce  to  develop  when  handicapped  with  the  above 
port  charges  against  it. 


Eicltard.s  <0  Co.,  .^O.'i  Broudiraii,  Xrir  York  Cifj/. 

2.  Our  business  is  that  of  obtaining  patents  for  inventions,  ]n'otec- 
tion  of  trade-marks,  copyright  registration  in  the  United  States,  and 
in  all  the  countries  granting  such  protection. 

3.  We  deal  with  nearly  every  country  on  the  globe, 

4.  We  have  made  and  are  constantly  making  efforts  to  extend  our 
foreign  business.  The  methods  used  are  direct  correspondence,  the 
distribution  through  the  mails  of  circvdars  and  price  lists,  and,  so  far 
as  Euroi)ean  countries  go,  occasional  i»ersonal  visits  to  our  correspond- 
ents there.  Our  efforts  are  meeting  with  success,  especially  in  the 
principal  European  countries  which  we  have  personally  visited. 

5.  As  will  appear  from  the  foregoing,  the  laws  which  interest  us  are 
those  which  relate  to  the  protection  of  inventions  (patent  laws),  and 
tlie  registration  of  trademarks  and  copyrights. 

There  are  at  present  certain  discriminations  which  work  injury  to 
United  States  inventors,  and  which  we  believe  might  be  removed  with- 
out serious  difliculty.  We  shall  mention  but  two  such  matters,  since 
they  are  the  most  prominent  that  exist  today: 

(1)  We  would  mention  a  discrimination  made  by  the  Germans 
against  the  citizens  of  the  United  States.  The  facts,  briefly  stated, 
are  as  follows:  On  the  1st  of  October,  1801,  an  amended  patent  law 
came  into  effect  in  (iermany,  which  i)rovided  in  its  second  section  that 
an  invention  should  not  be  considered  as  new  (it  must  be  new  to  be 
patentable)  if  at  the  date  of  filing  the  application  the  invention  has 
been  described  in  ])ublic  prints  within  the  last  century,  etc.  An  excep- 
tion is  made  in  favor  of  the  official  publications  of  foreign  patent  off  ice, 
Avhich  shall  only  be  considered  equal  to  public  prints  after  the  lapse  of 
three  months  from  the  date  of  publication;  but  this  exception  is  made 
only  in  favor  of  the  publications  of  those  States  ''in  which,  accord- 
ing to  the  publication  of  the  Inqjcrial  Chan(;ellor,  in  the  Imjierial 
Gazette,  reciprocity  is  guaranteed."'  Under  the  terms  of  this  act,  if  a 
citizen  of  the  United  States  files  his  application  for  patent  in  (Jermany 
a  single  day  after  his  patent  in  the  United  States  has  issued,  the  Ger- 
man application  is  rejected,  notwithstanding  the  existence  of  the  excep- 
tion to  the  rule  indicated  above,  and  notwithstanding  the  fact  that  the 
otlicial  gazette  ctmtaining  the  publication  of  the  United  States  patent 


:1'. 


?  i 


3in 


RECIPROCITY    STATEMENTS. 


w 


could  not  by  any  possibility  bave  reacjhed  (ieiinany  before  the  (rerman 
aitplication  was  filed. 

The  ])atent  laws  of  the  United  States  jjrant  to  (lerinans,  as  they  do 
to  oiLizens  of  the  United  States,  the  ri^ht  to  ai)i)ly  for  a  i>aten^  at  any 
time  after  the  issuance  of  a  ( Herman  i)atent  for  the  same  invention,  i)ro- 
vided  only  tliat  the  article  cov^ered  by  the  ])iitent  has  not  been  in  public 
use  or  on  sale  in  the  United  States  for  more  than  two  yojirs  previous 
to  the  lilinj;;'  of  the  apjdication.  Thus  it  will  be  seen  that  the  United 
8tntes  already  extends  to  (icrinans  a  larjier  ]»rivile;iethan  the  (lerinans 
fjiiint  under  sectioTi  li,  but  nevertlieless  the  benefits  of  this  section 
luive  never  yet  been  conceded  to  citizens  of  the  I'nited  States  for  want 
of  the  i)reliiMii!ary  ])ub]icati(»n  in  the  Imperial  (lazettc,  whivli,  we  ])rc- 
sume,  iiwiiits  a  formal  as'ieement  between  the  two  Governments. 

Tlierc  have  come  witliin  our  icnowledge  a  number  of  cases  Avli(>rein 
valuable  rij>;hts  hnve  been  lost  t.)  inventors  by  reason  of  the  fact  that 
they  were  not  admitted  to  the  i>rivile<;o  which  would  seem  to  be  their 
due,  and  which  a])i)ears  only  to  hany  upon  the  exchanj;e  of  a  little 
diplomatic  correspondence. 

(2)  The  second  dilliculty  to  which  we  Avould  draw  j-our  attention  is 
with  relation  tothoobtainini^of  protection  for  ])atentsand  trade-marks 
in  fTai)an.  The  .lapanese  have  laws  for  the  ])rotecti(ni  of  botli  i)atents 
and  trade-marks,  but  u])  to  the  ])resent  these  laws  have  been  otiicially 
deternuned  to  apply  only  to  natives,  the  oilicials  holding'  that  as  for- 
ei^'ucrs  lesident  iii  Japan  were  not  subject  to  the  jurisdiction  of 
Jai)anpso  courts,  and  hence  weni  not  punishable  by  them  for  tlie 
infringement  of  rights  under  patents  and  trade-marks  of  native  flap- 
unese,  they  could  not  undertake  to  punish  native  .lapanese  for  the 
infringement  of  rights  granted  to  such  foreigners. 

J)uring  the  month  of  November,  lS!)i,  however,  a  treaty  between 
.lapan  and  thelJnited  Stateswas  ratilied,])roviding  among  other  things 
for  reciprocal  jn'otection  for  patents  of  invention,  trade  marks,  etc. 
This  treaty  comes  into  effect  in  November,  189J),  we  understaiul,  and  it 
will  then  be  i)ossil)lc  to  obtain  such  ])rotection  as  is  desired.  Fin' the 
p/iesent  tlu're  apiiears  to  be  no  means  for  securing  ])rotection.  Jt  seems 
to  us,  however,  that  .Japan,  having  entered  into  this  treaty  agieement, 
Avould  be  inclined  to  meet  with  favor  a  iirojjositioi.  'loking  to  an  ad 
interim  arrangement  by  whicli  ])rotection  should  be  secured  to  citizens 
of  the  United  States  until  the  treaty  comes  into  force. 

"We  are  having  inciuirics  made  of  us  constantly  as  to  bow  protection 
can  be  vsecured  in  .la])an,  and  the  matter  is  undoul)tedly  one  of  great 
impoitance  to  iuA'cntors  and  mei(;hants  here.  Such  an  arrangement  as 
we  suggest  ('(mid  not  help  but  be  of  n^arked  benefit  to  a  large  class  of 
the  comnumity. 

(i.  The  tariffs  of  foreign  countries  do  not  <lirectly  affect  our  business. 

7.  The  answ(»r  to  (juestion  (!  will  api>ly  in  answer  to  this  (juestion. 

S.  Our  business  is  i)robably  double  what  it  was  six  years  ago. 

0.  Our  charges  for  services  are  apjaoximately  the  same  as  they  were 
six  years  ago. 

10.  The  (jucsiion  is  not  ajiidicable  to  our  business. 

11.  The  sai"e  is  true  of  this  (piestion. 

12.  We  believe  that  the  ve(;i])rocity  treaties  of  180'^  were  fav(n'able  to 
the  ex])ort  trade  of  the  United  States,  and  tliat  their  repeal  \\as  a 
heavv  blow  to  the  same. 

13.  We  do  certainly  believe  in  reci])rocity  treaties,  and  favor  the 
emictment  of  such  a  iieneral  law  as  is  su<«"iiested. 


nugs 

etc, 

uul  it 

'  the 

onis 

lent, 

n  ad 

izeii.s 

•tioii 
;r('at 
lit  as 
iss  of 

IK'SS. 


Ic  to 
us  Jl 

tlie 


RECIPROCITY    STATEMENTS. 
licvnuiii  tl'  (Uishin  Merrhiin<lise  ('nnijtanti,  Ktuoistoit,  Wi/d. 


317 


As  SL'Ciotciry  ol"  the  Hvaustoii  lioanl  of  Trade,  penuit  me  to  answer 
j'onv  questiors  for  myself  at  least,  and  my  (>1)servatiou  and  in<|niry 
\variant  me  in  saying  my  views  ar(^  substantially  the  same  as  all  Imsi- 
ness  nu'n  in  this  seetion  of  country. 

I'irst.  Th(M'ecij>rocity  airan<4-ement  was  favorable. 

Second.  The  effect  of  the  rei)eal  was  unfavorable. 

Third.  It  is  exi)e<lient  to  i)ass  some  law  providin;;"  for  reciprocity. 

Fourth,  (live  us  a  "departnuMit  of  eommer<  e,"  with  a  busiiu'ss  man 
at  its  liead,  ami  limit  his  duties  as  nearly  as  i)ossible  to  the  devel()i)nient 
of  forei<;;i  commerce.  Thr()u,uh  our  consular  and  di|)lonuiti(;  s<'rvice  he 
could  learn  of  every  market  in  the  world  where  Anu'rican  j^oods  could 
be  inti'oduced  and  under  what  conditions,  and  could  then  ])lace  this 
information  at  tlui  disposal  of  the  manufa<"turers  here.  I  believe  the 
ri^ht  man  could  increase  our  business  to  an  anm/.inf>- extent.  If  our 
(rovernment  were  a  business  institution,  this  would  have  been  done 
lonn"  apo.  His  re(!ommendations  would  l)e  invaluble  to  an  executive  in 
nejiotiating  re(;ii>rocity. 

Our  (lovernment  should  also  provide  exchanf>e,  transportation,  and 
communication  i'acilities  with  South  America,  and  possibly  other  parts 
of  the  world. 


Edicard  If.  llaslxll,  lio.ston,  Mass, 

Ivoferriuf;'  to  your  recent  courteous  re(iuest  as  to  my  views  ui)on  the 
proi)ositiou  now  before  your  honorable  committee  lookiiij;'  toward  the 
reestablishment  of 'cciprocal  relations  with  other  countries,  thr()u.^h 
conunercial  treatii  and  as  to  my  experience  and  views  as  to  the  prac- 
tical results  secured  to  this  country  (lurin.i;'  the  operation  of  the  foruu'r 
reciprocity  treaties,  1802  to  181M,  1  have  to  suy  that  1  have  been  for 
nmny  years  a  strong"  ad\'ocato  of  and  supporter  of  the  recipro(;ity  prin- 
ciple in  dealinji'  with  nations,  especially  our  South  American  liepublics. 

i  have  always  felt  that  reciprocity  conuneiided  itself  as  a  business 
l)riuciple,  and  that,  if  it  was  given  a  fair  trial  in  the  administration  of 
our  affairs  and  ])laced  on  a  souml  basis,  and  adopted  as  one  of  the 
leading  i)rim'ii)les  of  our  Government,  it  must  soon  result  in  materially 
enlarging;'  our  foreign  trade  uiuler  most  favorable  conditions. 

This  was  clearly  shown  by  the  rapid  de\  elopment  of  our  trade  with 
tl'.e  South  American  Ixepublics  which  followed  the  establishing  of 
reciprocal  relations  with  these  countries  in  liSiU,  through  the  able 
eiiorts  of  Secretary  Pdaine,  and  which  grew  from  8nO.U<ii»,0()0  in  18!)li  to 
■":<10i,()()0,00(>  in  18i>.'>,  and  in  which  extension  of  trade  the  paper  indus- 
try, which  J  re])resent.  was  very  nuich  beuetited:  and  its  etiicacy  as  a 
principle  in  dealing  with  these  countries  was  specially  shown  by  the  fact 
that,  in  18U5,  after  the  repeal  of  the  reci])rocity  treaties,  our  exports  to 
these  same  countries  fell  off  to  ••^87,t)(H),()0U,  the  lowest  poinc  reached 
tor  nniuy  years. 

Let  reciprocity  b(^  cstaldished  as  the  governing  ])oliey  of  our  people, 
and  easy  access  to  thes(?  countries  be  established  by  regular  steamship 
connections  and  proper  baidcing  facilities,  and  1  am  contidcut  our  trade 
Avith  these  countries  alone  would  soon  reach  $2()0.00(t,00(). 

Ail  the  correspondence  ami  reports  from  our  consular  service  in  these 
countries  have  made  it  (dear  that  the  ])eople  of  these  countries  would 


I  s  - 
I  ': 

H 

il 

f  r 

i; 


318 


HECIPliuCITV    STATEMENTh. 


l)ref«ir  to  Jia\«'  cl«»se  commercial  relations  with  this  country  tlian  with 
European  nations. 

It  would  also  .s«MVc,  ii!  a  special  sense,  to  establish  more  cordial  and 
l»ernianent  relations  between  ourselves  and  these  count  lies,  and  <io  very 
iar  to  brinj>'  about  a  {general  ai)]>reciation  of  the  many  stroii};'  (jualities 
which  have  made  our  o",.n  country  conspicuous  as  the  leading:  commer- 
cial liepublic  of  this  hemisi)here. 

I  sincerely  trust  that  early  steps  may  be  taken  both  to  rcestablisli 
the  reciproi'al  relations  with  all  the  South  Anunican  IJepublics  and  to 
extend  these  relations  to  the  jLher  great  nations  of  l'airoi)e. 


1  i 


Li/on.  C'letm-nt  d^  GrecnUnf  Co.,Wauscon,  (thii>. 

In  re}::ard  to  reci])rocity.  we  Avould  say  that  while  the  (lovernmeut 
figures  readily  show  the  benelitand  also  the  loss  l)y  the  repeal,  we  would 
state  that  our  direct  trade  increased  more  liian  ."^L'OO.OOO  when  it  went 
into  ('fleet  for  tlie  tirst  year  and  declined  that  much  when  it  was  rei)ealed. 
We  are  mucii  in  lavor  of  recii)rocity,  as  wv  gain  something  vIumi  we 
give  something  to  other  nations,     ^\'c  n-gard  it  as  i»ractical  i)olitics. 


I     111 


HRKADSTl  FFS. 


ClJtCULAIi  OF  IM^UIKV  TO  MAXUFACTrRERS. 

Committee  on  Ways  and  Means, 

House  of  Rei'iiesentatiat'?, 
Washhujton,  J).  C,  March  ',  i 


':96 


RiK:  In  order  that  they  may  give  more  intellijrent  consideration  to 
pending;  and  proposed  le{;ishition,  the  subcommittee  of  the  Committee 
on  AVays  and  Means  of  tlie  House  of  Representatives  in  charge  of  bills 
rehiting  to  leciprocity  arrangements  and  commercial  treaties  Avould  be 
greatly  obliged  if  you  would  forward  them,  at  your  earliest  (conven- 
ience, your  views  and  suggestions,  and  such  iufornuition  as  you  are 
able  to  furnish  ujMjn  the  following  i)<)ints,  namely: 

I.  Give  full  name  and  address  of  lirm  or  company, 
li.  Lines  of  manufacture. 

.}.  Amount  of  capital,  nund)er  of  persons  employed,  and  value  of 
annual  product. 

4.  Do  you  lind  your  market  at  home  or  abroad,  and,  if  both,  in  what 
proportion  '. 

T).  Ho  you  sell  direct  to  foreign  dealers  or  through  comndssion  liouses? 

6.  Have  you  nuide  any  direct  effort  to  extend  your  foreign  trade; 
and  if  80,  by  what  means,  witli  what  success,  and  in  what  countries? 

7.  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulationsof  any  foreign  couutry  that  restrict  or  prevent  the 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  means  by  which 
they  may  bo  removed  ? 

8.  AVhat  changes  have  recently  occurred  in  the  traill's  of  foreign 
countries  so  far  as  they  relate  to  your  lines  of  manufacture » 

!>.  How  far  would  the  removal  or  reduction  of  the  customs  duties 
imposed  by  foreign  nations  upon  the  merchandise  in  which  you  deal 
aid  in  the  extension  of  your  export  trade? 

10.  What  is  the  <»utput  of  your  establishment  compared  with  that  of 
six  years  ago ' 

II.  How  does  tiie  present  cost  of  production  comp.are  with  that  of 
six  years  ago;  iiu-luding  wages,  the  cost  of  raw  nuiterial,  and  transpor- 
tation rates  by  sea  and  land! 

12.  How  do  i^resent  selling  prices  compare  with  those  of  six  years 
ago  ? 

1.'}.  What  competition  do  you  meet  with  from  tc  reign  manufacjturers, 
and  in  what  markets? 

14.  What  advantages  do  your  foreign  competitors  have  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

1").  To  what  extent  can  you  comi)ete  with  foreign  manufacturers  in 
qualitv  and  prices  ? 

319 


kl] 


M 


N^   11 


320 


RECIPKOCI'"V    STATEMENTS. 


1(1.  Has  the  total  product  of  the  United  StJites  iu  your  line  of  uuiuu- 
facture  increased  or  decreased  during^  the  last  six  years? 

17.  What  proportion  of  the  total  ]>rcsent  and  possible  output  in  your 
lines  of  manufacture  iu  the  L'nited  States  can  be  absorbed  by  the 
donu^stic  market;  and  what  would  be  your  estimate  of  tlie  natural  sur- 
plus for  ('xi)<)rt  if  all  miinufacturers  in  your  lines  \ver(i  i)r()ducin<4'  to 
their  full  capacity  ?  (The  purpose  of  this  in([airy  is  to  secure  iis  accuiate 
an  estimate  as  ])ossible  of  the  necessity  for  new  foreign  markets  to  the 
manufacturers  of  the  Tnited  States.) 

IS.  Was  the  general  effect  of  the  reciprocity  treaties  nuule  iu  1890 
favorable  or  unlavorable  to  the  export  trade  of  the  United  States,  and 
what  wiis  the  effect  of  their  repeal  ? 

10.  What  was  the  ctfect  upon  farm  i)roducts  ])ar;  icularly  ? 

(If  your  replies  to  in(iuiries  17  and  1<S  are  based  upon  actual  ex])eri- 
ence,  please  give  details  as  fully  as  ])ossible.) 

20.  Do  you  favor  the  application  of  the  reciprocity  i)rineii)le  to  future 
tarilf  legislation,  and  the  enactment  of  a  general  law  anihorizing  the 
rresident  to  negotiate  re(;iprocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible? 

These  inquiries  have  been  forwarded  to  several  hundred  ])ersons, 
firms,  and  corjiorations  who  are  engaged  iu  the;  manufnctnre  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  rei)lies 
are  intended  for  publication  with  a  rejHjrt  which  the  Committee  on 
Ways  and  Means  will  uuike  to  the  House  of  Itepresentatives;  but.  if 
so  desired,  any  information  I'cceivcd  will  be  regarded  as  confidential. 
All  values  should  beexpressed  iu  IJuited  States  gold,  and  all  (piiintitics 
iu  our  weights  and  measures. 

Any  suggestions  or  infornuition  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  inipiiries  will  be  ai)preci!ited. 
I  am,  sir,  your  obedient  servant, 

A.  J.  Hopkins,  ('halrmnn. 


itEri.ii<:s. 

K.  i).  Sf(in<(y<l  Millhuj  t'omijanif,  >St,  Louix. 

We  are  flour  manufacturers. 

We  have  about  one-half  million  dollars  invested  in  the  business. 

About  loO  employees. 

\'alue  of  annual  ])roducfc  about  85,000,0(10. 

Our  nuirket  is  both  at  home  and  abroad.  From  one-third  to  t  le-half 
of  our  llour  is  usually  niarUeted  in  foreign  countries. 

Wii  sell  direct  to  dealers  in  foreign  countries  and  through  brokers, 
and  direct  to  merchants  ami  bakers  in  this  country. 

The  largest  i)«u"tit)n  of  our  foreign  business  is  in  Great  liritain. 

We  have  had  a  large  trade  iu  Habana  until  the  aurogation  of  the 
reciprocity  treat ies  in  1894  Since  then  our  business  has  betMi  coni]>ar- 
atively  light,  and,  of  course,  lighter  since  the  ravages  of  war  over  in 
Cuba. 

We  have  no  difficulty  in  our  business  with  Great  Jiritain  fr»)m  the 
standpoint  of  (lufies,  but  on  .iccount  of  wheat  going  into  i-'rance  and 
(ieinnuiy  and  other  foreign  countri«'s  duty  frcM',  and  the  large  duty 
placed  on  flour,  we  are  deprived  of  the  trade  in  those  countries. 

Ther«i  has  been  l)ut  very  little  change  in  the  irutput  of  our  mills  in 
the  past  six  years. 


RECIPROCITY   !<TATEMENTS. 


321 


of  imiuu- 

it  ill  your 
tl  by  tlie 
fural  siir- 

lllCMIl<4'   to 

« accurate 
L'ts  to  the 

b  in  J8!H) 
ates,  aud 


il  cxperi- 

toluture 
i/Auy;  the 
)eau  aud 


l)ers()us, 
t  various 
ic,  r('])lics 
uittee  oil 
s;  but.  ir 
lideutial. 
di'iUtitics 

subi<;(;ts 
(1. 

'riiKin. 


Iie.sss. 

K'-half 

|>rokcrs, 

|u. 

of  tlu' 
loiiipar- 
l)ver  iu 

|)iii  tlu; 
•c  aud 
duty 

liills  ill 


Wo  have  iu  a  general  way  reduced  the  cost  of  production  in  the  past 
five  or  six  years.    Wages,  however,  have  not  been  luateriidly  reihiced. 

Wlieat  has  been  Vv-ny  much  lower  the  past  three  or  four  years  than 
ever  before  sinc<'  the  war. 

Transportation  by  sea  and  l)y  laiul  averages  cheaper  than  ever  before 
in  the  last  few  years. 

The  selling  i)rice  of  flour,  on  account  of  the  price;  of  wheat,  has  been 
lower  the  past  four  or  live  >cars  tluiu  at  any  tiuu^  iu  the  1  st  forty  years. 

The  Spanish  mills,  since  the  abrogation  of  tlu^  leciprocity  treaties, 
have  been  our  chief  competitors  i'l  liioOuban  nuirkets.  And  the  flour- 
ing mills  in  Great  Britain,  where  the  freight  on  wheat  from  this 
country  to  theirs  is  usually  a  little  less  than  on  flour,  aud  where  their 
cost  of  manufacturing  is  less  by  virtue  of  cheap  labor,  are  our  chief 
competitors 

We  believe  the  quality  of  flour  in  this  country  is  superi(U'  to  that 
made  anywhere. 

It  is  believed  that  the  product  of  the  fhniring  mills  of  the  United 
States  has  increased  15  to  L'O  per  cent  iu  the  last  live  or  six  years. 

We  believe  that  if  all  the  merchant  flouring  mills  in  the  United  States 
were  to  run  five  mouths  steadily  they  would  makc^  as  nuu-h  Hour  as 
could  be  absorbed  by  our  domestic  markets  in  a  year,  and  iu  the  bal- 
ance of  the  year,  if  the  flouring  mills  should  all  run,  we  coidd  very 
nearly  feed  all  the  numths  in  Europe. 

We  have  been  doing  more  or  less  business  in  the  Cuban  luarkets  the 
past  twenty-five  years.  Our  bi-ands  have  becouu'.  well  known,  and  for 
a  few  years  ])revious  to  18iK)\  when  the  recii)r()city  treaties  went  into 
efl'ect,  we  hacl  built  up  a  trade  that  took  from  ir»,(K)0  to  20, ()()(>  biirrels  a 
year.  From  LSiK)  to  1894  (when  the  reciprocity  treaties  were  abrogated), 
or  say  betweeu  these  two  jieriods,  our  trade  ran  np  to  fioin  05,000  to 
75,000  barrels  a  year,  ami  after  the  abrogation  the  trade  droi>ped  back 
to  about  15,000  or  120,000  barrels  ])er  annum,  and  of  course  last  year  it 
has  not  been  so  much.  Our  trade  relations  aud  the  credits  over  there 
have  been  exceedingly  uncertau.  '^^  acciount  of  the  war. 

NV"e  believe  thnt  tlui  reciprocity  treaties  of  1800  were  exceedingly 
beneficial  to  our  business  and  the  milling  busiiujiss  in  general,  and  we 
bidieve  it  would  be  a  great  advantage  if  the  old  treati<;s  were  reesfjib- 
lislied  and  new  ones  generally  extended  so  far  as  articles  are  concerned 
that  we  J) rod  ace. 


iSa.rony  Mills,  St.  Louis,  ^fo. 

The  effect  of  recalling  reciprocity  arrangements  with  Spain  was  most 
disastrous  to  our  interests,  as  that  country  immediately  put  a  duty  on 
flour  going  from  the  United  States  into  Cuba,  of  some  !j<  I  or  !J<5])ersaek, 
which  before  ihat  time  had  been  $1  i)er  sack.  TluM-ify  of  St.  t.ouis 
it'.  .'>e  exported  over  1,000,000  sacks  of  (lour  to  Cuba  every  year  when 
the  reciprocity  treaty  was  iu  cHccf.  Now  we  doubt  if  L*5,0(H)  bags  or 
sacks  are  sold  evcy  year  from  here.  We-  hoi)e  that  a  treaty  can  be 
made  so  that  we  can  get  our  Hour  into  Cuba  again. 

lOngland  also  threatens  to  put  a  duty  on  Hour  fVoni  tins  eouutry, 
while  wheat  is  going  in  free.  Fiance  also  has  a  high  duty  on  Hour, 
while  wheat  shipi)ed  from  here  into  thut  country  goes  free,  or  only  pays 
a  nominal  duty.  Wc  think  there  is  no  duty  on  it  at  all.  We  think 
su'"»s  should  be  taken  so  as  to  let  our  Hour  free  into  t^very  country  which 
pxacta  no  duty  on  our  wheat,  ftsiu  that  uuuucia  good  deal  nioro  labor 


I.  a; 


I 


^1      f 


H,  Kop.  22(ia- 


II 


11 


322 


RECIPROCITY    STATEMENTS. 


can  be  given  to  our  unemployed.  Tlie  milling busine.ss  in  this  country 
Inis  been  in  very  bad  shape  the  last  couple  of  years,  but  we  hope  by 
proper  legislation  to  improve  it  considerably. 


Acme  MiUhifi  Conqmny^  ImlianapoUs,  Iiid. 

Manufacturers  of  winter-wheat  Hour. 

Now  largely  with  the  United  Kingdom,  and  a  small  amount  to  Hol- 
land, r>razil,  and  Xcwfonndlaiid. 

Canadian  trade  iiractically  lost  since  increased  duties  that  occurred 
several  years  ago. 

Cuban  trsidc  destroyed  when  their  duty  on  Hour  was  advanced.  Our 
elforts  to  sell  in  (Jernumy  have  been  fruitless  on  accounted"  duty  imposed. 
Fraiice  buys  lu)  Hour  from  us  since  the  discriminating  duty  was  ])ut  on 
Hour.  IJeigium  is  now  lost  to  us  because,  of  the  duty  lately  imi>osed. 
A\'e  can  not  i)ossibly  exteml  our  trade  in  these  countries  until  there  is  a 
modilication  ol"  their  tariffs. 

Tlie  removal  of  the  custom  duty  would  materially  aid  us.  In  fact,  it 
would  assure  us  of  a  fair  projjortion  of  the  trade  in  all  of  these  countries. 

Our  sales  in  18!).")  were  10  per  cent  larger  than  in  1880. 

Table  ahuwiiKj  rurudioii  hi  jiricvu. 


Dato. 


JI  ill-ell,  1S88., 
.liiiiiuiry,  1.S8H 
OcliplH'i,  1887 
Miiich.  IWU). 
.Jiiiiiiiiry.  I8'.)0 

(  )ciolM'I',  ]SSI( 

Miuvli.  IWIC) 
Jiiiiiiiirv,  l^iKi 
Octobfi',  IHUU 


^:^. 

Extra 
fancy. 

Clear. 

Feed. 

$17.  00 

Wheat. 

$4.10 

i|!3.75 

$2.  .1(1 

ifo.  83 

4.20 

;t.  !)0 

2.  (i.'> 

17.  2.5 

.83 

;!.  !)0 

!i.  r.5 

2.  7;) 

13.  05 

.73 

4.  (10 

;t.D=> 

3.  05 

10.  50 

.73 

4.  l.'i 

:!.72 

3.  00 

SJ.25 

.70 

4.  '20 

3.75 

3.  4,5 

y.  00 

.71 

:i.  9:i 

3.40 

2.80 

9. 30 

.72 

;t.  00 

3.16 

2.  45 

9.40 

.05 

a.  48 

3.14 

2.30 

11.00 

.C5 

The  foreign  miller  has  some  advantages  in  matter  of  uriinsportation 
chi) -ges,  us  the  cost  of  freighting  wheat — the  raw  material — is  less  than 
that  of  Hour.  The  advantage  is  not  grea ;,  and  the  American  miller 
has  advantages  to  e([uali/e. 

We  can  i)roduee  a  better  article  and  deliver  it  to  the  foieign  markets 
at  comi)e(itive  juices  when  customs  duties  do  not  int'    ''1!% 

Very  favorable.  Tntil  then  W"  had  no  Cuban  <  ';  i^ilian  trade. 
After  the  abrogation  of  the  treaty  with  Cuba,our  tradf  :  u.h  was  Oegin- 
ning  to  assume  consirlerabhi  lUGjxntions,  was  coiep  .c  ;;    aestroyed. 

The  flour  export  trade  has  been  especially  hurt  by  the  ut  eriminatin^ 
tariff;  that  is,  the  duty  on  flour  being  greater,  projiortionately,  than  on 
wheat.  This  is  the  (tase  with  a  large  part  <)f  the  lMiroi)ean  countries. 
^\'e  IniM'  also  found  the  competition  of  the  i^'rench  miller,  in  countries 
outside  of  l''rame,  (piiti^  a'lnoying.  .Vs  he  is  paid  a  bounty  on  the  flour 
e.xptuted,  he  sells  lor  a  i)riie  actually  less  than  cost.  The  jiooi'  (piality 
of  his  flour  stands  in  the  way  of  his  more  seriously  injuring  <uir  trade. 


I       I 

y 


Mosclcf/  d-  Moflei/  Milling  Company^  Rochcstti',  li.  Y. 

h'ecii)roeity  with  some  of  tlu'  simthern  countries  would  bo  of  greftt 
benefit  to  I  lie  millers.  Trust  you  will  do  all  you  can  to  help  the  goo^ 
cause  along. 


RECIPROCITY   STATEMENTS. 


323 


:his  country 
we  hope  by 


milt  to  IIol- 

lat  occurretl 

ill  iced.  Our 
iityiiniMxseil. 
'  was  ])ut  on 
ely  imposed, 
itil  there  is  a 

.  In  fact,  it 
se  countries. 


Feed.    Wheat. 


flT.OO 

$(».  83 

17.1'5 

.83 

Hi.  05 

.73 

10.  50 

.73 

».  25 

.70 

0.00 

.71 

9. 30 

.72 

9.40 

.05 

11.00 

.65 

iisixu'tation 
■is  less  llian 
•icaii  miller 

l^n  markets 

iliaii  trade. 
|i  was  Deyiu- 

ciestroyed. 

rimin.itin^f 
ily,  than  on 

countries. 
11  countries 
hn  tlie  Hour 
]i)or  (juality 

our  trade. 


|c  of  {jfrcivt 
the  goo(| 


E.  Goddard  Flow  Mill  Vompnmj,  St.  LoniH,  Mo. 

The  ell'ect  of  the  reciprocity  treaties  was  favorable,  and  it  made 
increased  business  for  us.  The  ettectof  the  repeal  was  bad.  Take  the 
islands  of  Cuba  and  Puerto  llico.  Tluitis  enoujih  to  demonstrate  the 
result.     Our  business  has  been  curtailed  to  one  of  a  retail  ch.u.u'ter. 

The  reciprocity  principle  properly  worked  with  tSreign  nations  should 
brill};'  about  ^ood  results  for  our  manufactured  products. 

That  de[)e!Mls  entirely  on  how  good  a  barj^aiu  this  country  can  make 
with  other  countries.  Somelhinj^  will  have  to  be  done  to  extend  the 
export  trade  of  this  country,  or  else  our  maniil'actnrinj;'  interests  will 
dwindle  <h)wii  to  nothing.  The  cry  will  soon  be  high  taritf  unless  we 
get  relief. 


The  Victoria  Flour  Mills,  St.  Louis. 

Acknowledging  your  two  printed  <;ommunications  of  1th  instant,  wo 
do  not  believe  we  can  add  to  the  information  laid  before  your  committee 
by  I\Ir.  M.  II.  JMvis,  of  Sholby,  Ohio. 

We  do  believe  in  the  principle  of  reciprocity  as  advocated  by  Presi- 
dent Arthur  and  Mr.  Blaine,  and  that  the  i)()licy  would  greatly  enlarge 
the  export  Hour  business  of  our  country,  as  also  other  lines.  We  believe 
that  the  President,  by  approval  of  tlie  Senate,  should  have  i)ower  to 
negotiate  on  a  give-and-take  basis,  iiiiil,  where  discrimination  against 
any  of  our  natural  or  manufactured  products  continues  to  be  maintained 
by  any  foreign  country,  that  the  President  should  have  power  to  embargo 
any  or  all  produc*^s  of  such  couutry  until  satisfactory  mutual  arrange- 
ments are  agreed  on. 

'  iir  principal  cause  of  complaint  is  that  certain  foreign  (Jovernments, 
by  imitating  closely  our  high-i)rotection  i)ractice,  admit  the  raw  mate- 
rial (our  wheat)  t\-e>s,  or  at  much  lower  tarilf  rates  than  they  charge  on 
our  Hour,  thus  excluding  our  millers  from  competition  with  their  homo 
millers.  This  does  not  hurt  our  farmers  directly,  but  it  does  hurt  tlieiu 
to  the  extent  that  millers  of  our  c(uiiitry,  placed  at  such  disadvantage, 
can  not  pay  as  much  for  wheat  as  if  such  foreign  markets  were  evenly 
oi)eu  to  their  Hour. 

If  Mr.  IMaine  ever  said  "  Keei)  ycnir  tarill'  to  trade  on,''  Ik;  struck  tho 
keynote,  and  the  President  slicuild  have  the  authority  to  trade  in  tho 
interest  of  our  agriculture  and  manufactures  iudependent  of  general 
tarilf  legislation. 


The  (ioHhcn  Millin<i  (Joiiq)anyj  GoshtHj  Ind. 

2.  Winter-wheat  flour  and  feed.  ' 

.'{.  Kighty  thousand  <lollars  ca[)ital.  About  lifty  peisons  emidoyed. 
Annual  jtroducl,  m.Vi( ».()!)(►. 

I.  Both.     Abroad  about  7  [ter  (aait.  

5.   Direct  u)  foreign  dealers. 

<>.  Yes,  we  hav(\by  coriespoiideii<'e,by  jjerscjual  visits,  and  by  nniking 
good  goods.     \Ve  have  done  vevy  well  in  the  United  Kingdom. 

7.  Our  trade  in  the  United  Kingdom  has  been  very  much  injured  by 
the  peculiar  laws  of  Franc*',  whi<'h  permit  French  millers  to  import 
wheat,  and  then  have  more  than  the  tarilf  refunded  when  the  Hour  is 
exported  to  the  United  Kingdom.  This  virtually  amounts  to  a  bcius 
to  them,  unit  thuir  competition  has  beuu  the  must  bitter  wo  have  had  tho 


'i    i: 


1. 


I  'i 


{    -1' 


ri 


i^ 


Ki. 


324 


RECIPROCITY    STATEMENTS. 


past  year.     We  wouUl  .suggest  tliJit  a  tarill"  be  placed  on  French  goods 
inii)ort<Ml  to  Mii,«  connlry. 
<S.  lielgiuni  lias  lately  jilaced  a  tariff  on  American  Hour. 

9.  We  Avould  say  about  LT)  per  cent.  ^ 

10.  r>y  putting  in  iidditional  nuicliinery  we  liave  increased  our  output, 
so  that  we  now  turn  out  700  biirrels  daily,  ngainst  500  six  years  ago; 
but  we  do  not  make  as  nnich  money  now  as  we  did  tlu-n. 

1 1 .  The  cost  of  production  is  some  less  than  six  years  ago.  The  trans- 
]K)rtation  rates  vary  very  much  indeed.  The  ocean  rates  are  regulated 
by  the  amount  of  tonnage  going  abroad.  The  rail  lines  Just  at  present 
are  uot  cutting  rates,  l)ut  they  will  (h)  so,  in  our  opinion,  soon.  The 
])rodnct  to  be  exported  should  be  carried  at  a  lower  rate  than  product 
intended  for  domestic  consumption. 

12.  As  a  rule,  much  lower. 

1.'?.  NVe  meet  with  very  bitter  conijietition  in  tiie  United  King(h)m, 
which  is  our  ]>rincipal  uiarket,  with  the  home  nullers  and  also  the 
l''ren(h  millers. 

14.  The  I'higlish  miller  has  an  advantage  over  us  in  being  able  to  i)ur- 
chase  his  supjdies  for  less  money.  As  I'higland  is  a  free  trade  (Jountry, 
clothing  and  nearly  everything  else  is  cheaper  than  in  America,  and  the 
I']nglish  miller  is  not  obliged  to  i)ay  so  much  for  his  labor  or  machinery, 
and  he  has  a  wide  market  from  which  to  purchase  his  wheat.  If  Amer- 
ican wheat  costs  too  much,  he  looks  to  Eussia,  India,  or  some  other 
country,  and  we  lind  that  (piite  freipiently  the  triinsportatiou  c()m])a- 
nu's  w^ll  carry  wheat  at  a  lower  rate  than  they  will  Hour,  altiiougli  they 
claim  that  they  do  not. 

15.  Just  at  i)resenr  English  and  Freiu;h  nullers  are  underselling  u.s 
very  nuich,  indeed,  and  we  aie  assured  byour  customers  abroad  that  they 
could  not  sell  a  barrel  of  American  tlour  were  it  uot  for  the  notion  that 
their  ])eople  have  that  it  is  the  best. 

1(1.  It  is  iiua'easing  very  nuu'h,  indeed.  The  tendency  seems  to  be 
toward  building  large  nulls  of  greater  capacity. 

17.  About  one-half  could  be  absorbed  by  domestic  nr'rkets.  The  other 
half  could  not  possibly  be  exjiorted  at  a  profit  if  all  the  mills  in  the 
United  States  were  running  at  full  capacity.  Much  wider  markets  than 
we  now  hav(^  wimld  l)e  absolutely  necessary. 

IS.  The  general  elfect  of  the  reciprociity  treaty  nuule  in  ISOO  was 
favoi'abh^  to  the  export  trade,  and  the  effect  of  its  repeal  was  bad. 

10.  They  sold  for  less  money. 

liO.  As  a  rule,  we  favor  a  very  moderatetariif  for  revenue  only,  for  rea- 
sons too  nunu'rous  to  nuMition.  It  would  (ircate  a  better  feeling  toward 
US  in  the  I'niled  Kingdom,  our  bestcustomer.  We,  liowevt'i,  fa\(tr  the 
reciprocity  idea,  so  thac  we  can  hold  such  nati-uis  as  Fiance  in  line. 
We  are  discriminated  against  by  their  taiitf  laws.  A  general  law 
authorizing  Ihe  President  to  negotiate  such  reciprocity  treaties  when 
possible  woidd,  in  our  opinion,  be  a  wise  one. 


S 


C  Jlojl'man  (0  Son,  IJntcrjtrisc,  Kami. 

2.  l"'lour,  mill  products,  and  meal. 

'A.  Amount  of  capital,  .'!t200,000;  number  of  i>ersons  employed,  L*0; 
value  of  annual  prodmf,  A.M0O,O00. 

•I.  Our  market  is  both  home  and  abroad — alxmt  one-fourth  abroad. 

5.  We  sell  direct  to  foreign  dealers  to  some  extent,  while  some  of  our 
^oo{iB  go  iiujiriictly  through  coiuinissioa  houses  at  Kew  York. 


UECIPIIOCITY    S'1'ATJLM1:NTS. 


325 


ncli  goods 


111- output, 
rears  ago; 

riie  traiis- 
iTgulaU'd 
it  ])r('sont 
Koii.  The 
II  product 


Kingdom, 
also  the 

)le  to  pur- 
)  country, 
I,  and  the 
laehiueiy. 
If  Anier- 
)uie  other 
M  ('()ni])a- 
)ugh  they 

selling  us 
tliattliey 
•tion  that 

lis  to  be 

le  other 
in  the 
:ets  than 

sito  was 
i»d. 

forrea- 
toward 
i\ or  the 
in  line, 
iid  law 
m  M'hen 


e«l,  20- 

road, 
of  our 


i 


0.  We  have  made  etforts  to  extend  our  foieign  trade  by  personal 
visits  to  FiUglaud,  Belgium,  and  Holland,  and  by  coiicsi)ondence  in 
those  countries,  as  well  as  Denmark  and  I'^rance.  We  have  also  put 
ourselves  into  comnuinicat ion  with  the  rei)resentatives  of  the  above- 
m<'ntioned  countries,  and  have  in  various  ways  informed  ourselves  as  to 
the  wants  of  the  ^•-„.,leof  the  above-named  countries.  Our  success  has 
been  fair,  and  we  are  having  a  fair  ex])ort  tra<le — not  as  large  or  as 
[)rotital>le  as  we  should  liice,  however.  In  fact,  we  have  only  been  able 
to  export  Hour  Avhen  tlui  local  markets  have  been  relatively  low. 

7.  There  are  nnuiy  discriminations  and  obstacles  in  the  laws  and 
customs  regulations  of  ship  comi)anies  an<l  foreign  countries.  Tiie 
shii)  com[)anies  issue  a  bill  of  huling  which  does  not  hold  them  respon- 
sible for  dannige  or  loss  on  goods  to  the  extent  that  equity  would 
demand,  and  the  American  sliipi)er  is  often  subject  to  loss  whi(^h  hr. 
can  not  recover  under  the  present  bill  of  lading  from  the  transportation 
companies,  either  inland  or  foreign,  nor  from  the  insurance  comi)anies. 
We  would  suggest  th(^  legal  adoption  of  a  fi  reign  bill  of  lading  that 
Avould  i)rotect  the  shipper.  A^arious  tariff  laws  and  charges  at  i)orts 
are  another  obstruction  that  we  believe  can  only  be  removed  by  intelli- 
gent cooperative  action  on  the  part  of  the  various  countries. 

8.  The  tai'ilf  has  been  raised  on  ilour  recently  to  the  extent  of  40 
cents  (L*  francs)  ]»er  220  ]>ounds  (100  kilos)  in  IJelgium,  to  the  almost 
entire  destruction  of  a  very  satisfactory  trade  avc  had  in  IJelgiuin.  It 
seems  that  this  law  was  brought  about  by  the  direct  request  of  the 
I'clgian  millers,  and  it  has  had  a  very  disastrous  etfect  upon  American 
Hour  trade  in  that  country.  France  has  also  recently  increased  her 
duti(  s  u])on  Hour  to  such  an  extent  as  to  not  only  prohibit  the  imjwrta- 
tion  of  tiour,  but  to  enable  the  French  millers  (wlio  are  eind)led  to  bring 
in  wheat  intended  for  export  free)  to  successfully  compete  with  Amer- 
ican Hour  in  F^ngland  and  other  European  countries.  It  seems  that 
the  millers  ol'  France  have  been  enabled  to  shape  legislation  very  much 
in  their  favor. 

0.  We  believe  that  the  removal  or  decided  reduction  of  customs 
duties  imposed  by  tbreign  nations  u]>on  tlour  and  null  ])roducts  would 
more  than  double  the  exi)ort  trade  on  Hour,  This  is  evident  when  we 
consider  the  enormous  amount  of  raw  material  (wheat)  exported  annu- 
ally from  the  United  States.  The  entire  ex]K)rt  of  breadstutfs  from  the 
ITnited  States  should  go  in  the  shai)e  of  tlour  in  the  mannfa<'tured 
article,  thereby  giving  the  employment  needed  in  its  ma.  facture  into 
th'>  Hnislu'd  articles  to  this  country,  as  well  as  leaving  the  offal  for 
feed  for  cattle  and  other  farm  aninuils. 

10.  It  has  in<!reas<Hl  li)  ])er  cent. 

11.  Increase  in  wages,  5(»  ]>er  cent;  increase  in  output,  70  per  cent; 
<leerease  in  inland  trans])ortation  ratt  s,  5  ])er  cent;  decrcjise  in  exjjort 
transi)ortation  lates,  15  to  20  per  cent;  cost  of  raw  nuiterial  about  2 
])er  cent  less. 

12.  Ten  to  tifteen  ])er  cent  lower. 

l.'{.  In  I>elgium  we  nu'ct  competition!  from  France  and  Kussia  as 
well  as  the  lionu^  mills,  Avhich  since  the  im]>osition  of  the  duties  on 
H(Mir,  have  ])ractically  driM'U  American  Hours  out  of  the  market.  In 
ilollaiul  we  nuM'tthe  nullers  of  Hungary,  Itussia,  I'^raiue, and  Dennuirk. 
In  I'lngland  we  meet  the  r,iillers  of  all  Hoiu'-exporting  countries. 

14.  Our  t'oreign  competitors  have  no  advantage  over  us  in  the  cost  of 
juaterial.  In  transportation  charges  some  of  the  millers  have  a  deci<led 
advantag(M)ver  American  ir.illers,  butasa  geiuM-ali)roposition  the  Anier- 
ican  millers,  as  far  as  cost  of  material  and  transportation  is  concerned, 
can  successfully  eonipeti*  in  tlie  Ibreign  markets. 


IT- II 


1 1 


11 


r 


!     !! 

)       i 


V'i       i 
■I  ■      l' 


i     ] 


326 


RECIPROCITY    STATEMENTS. 


l.~».  Wo  ran  compoto  in  (piiility  and  iiriccs  witli  foroiftii  inanufactur- 
ers,  jn'ovided  that  customs  duties  must  not  Ih\  iiddcMl  to  the  pri(;f 

10.  It  lias  in('-ioas<'d. 

17.  About  one  hall"  of  tlic  i)Ossil>lc  ]>resent  output  can  l>e  ahsorbecl 
by  tlio  (loniestii!  market;  n\ovo  than  double  tlic  uvei-age  amount  now 
ox])orted  would  be  ex])orfed  if  the  mill.s  could  run  to  their  full  ('ai)a(!ity. 

is.  The  *?encral  ellect  of  the  I'eciproeity  treaty  of  JSDO  si'euxMl  to  be 
faA'orable,  althou,uh  in  ourlin(M)f  mai  iifacture  we  could  not  )iotic(^  s'lsy 
definite  effect,  either  of  their  i)as8a<ie  or  of  their  repeal.  The  fjeneriil 
efle<;tol'  llu'-  rejieal  was  unfavoi'able. 

IJ).  The  ellect  of  the  rei)eal  upon  i'arm  i)roducts  seemed  to  be  quite 
unfavorable. 

20.  We  favor  the  application  of  tlu^  reciprocity  principles  in  future 
tarilf  l('<4islation  as  the  lesser  of  two  evils,  believinj^'  that  rc(!ii)rocity 
is  better  th  n  tarilf,  but  believing  that  fiee  trade  would  be  more  bene- 
licial  than  the  im])osition  of  customs  duties  upon  im[)orts,  no  matter 
how  low. 


I 

'4 


u 


Tate,  Miiller  «(•  C'o.,  Halfimorr. 

2.  Grain  merchants. 

.'{.  All  countries  in  l''.uro])e. 

I.  Ves.    All  countries  in  li^urope;  also  in  South  America. 

').  There  are  serious  discriminations  ami  obstacles  in  the  tbreig'u  coun- 
tries with  which  we  trade  to  prevent  the  extension  of  our  trade.  In 
l''ran('(i,  (lermany,  Italy,  ami  Si)ain  the  duties  are  almost  ])rohibitive, 
and  were  it  not  tor  the  fact  that  they  retpiire  a  snri)lus  for  their  own 
consuin|itioii  commerce  in  jirain  would  be  impossible.  We(;;in  notsuj;- 
jjest  any  means  by  which  these  obstacles  mi,nht  be  removed,  as  we  are 
tradiiifi"  in  arti(!les  which  are  raised  in  competition  with  us  in  all  i)jirts 
of  the  world. 

(J.  The  duties  on  cereals  have  been  successively  raised  in  the  last 
fifteen  years,  but  have  been  stationary  for  about  four  years. 

7.  We  think  that  the  leduction  or  rcnoval  of  customs  duties  in  those 
(countries  (mumerated  above,  where  they  are  (excessively  high  at  ])r('s- 
ent,  would  inure  to  our  benefit,  as  it  would  be  impossible  for  European 
countries  to  compete  with  American  producers. 

<S.  The  volunu;  of  our  business  depends  entirely''  upon  the  production 
of  our  country.  The  competition  in  the  other  parts  of  the  world  has 
grown  immensely,  but  as  grain  is  an  article  which  must  be  sold  when 
l)roduced,  it  is  only  a  ipiestion  of  price  which  will  legulate  the  volume. 

1).  I 'resent  pric(is  are  considerably  lower  than  six  ytsars  ago.  \\'e 
quote,  foi'  instance,  ])ecend)er  wheat  in  Chicago,  December,  LSI)."),  (il], 
and  SO.]  m  1S8!). 

10.  AVe  do  not  know  of  any  advantage?  our  foreign  com]>etitors  might 
have,  as  the  cost  of  land,  the  transportation  charges,  the  climate,  and 
the  nature  of  the  soil  are  favorable,  even  more  so  in  the  United  States 
than  any  other  i»art  of  the  globe.  The  cost  of  labor,  we  should  think, 
however,  is  considerably  higher. 

II.  In  (juality  we  can  compete  with  any  country,  ''rices,  of  course, 
de]>end  upon  the  crops. 

l:i.  Reciprocity  treaties  were  of  no  use  whatever  in  our  bnsitiess. 
They  benefited  only  those  who  trade  with  the  West  Indies  and  South 
America  to  any  extent,  and  as  the  trade  in  breadstulfs  with  those  coun- 
tries is  exctecdingly  snndl,  and  as  S[)ain  protects  her  colonies  with  dif- 


RECIPROCITY    STATEMENTS. 


ferential  duties,  we  do  not  tliink  tliatiii  theliin'of  j;riiiii  and  brciidstull's 
tlicy  liiive  done  any  ♦•ood  to  speak  of. 

].'{.  We  do  not  tliiiik  that  the  rceipiocity  ]>iiiiei]>l<'  will  do  ns  any  li'ood, 
and  we  f'ear  ('oini)lic,at.ioiis  with  j;<)od  custoineis  in  onr  line  it  nndne 


advanraf^es  are  accorded  to  others. 


a 


n  ihose 
it  i)r('s- 
iropc^an 

iiction 
1(1  has 
when 

<)llUlH\ 

,     We 
!>:,,  (;.i=J, 

niii^ht 

Jc,  and 

States 

think, 

course, 

isiness. 

South 

c  (•(»iin- 

ith  dii'- 


:ii 


The  Jilish  MiUin<i  (Jomixnn/,  Sri/movr.  Iiid. 

2.  Fhmr  and  hran  from  winter  wheat. 

li.  {(I)  Oneliuiidred  and  fifty  thousand  (hdlars,  (/;)  thirty-(i\M>  persons, 
{(•)  six  hundred  tho\isand  (h)llar8. 

4.  Crop  year  of  ISDU — Domestic,  28  ])er  cent:  export,  72  i)er  cent. 
Cro])  year  of  181)3 — Doujestic,  .')9  per  cent;  export,  <ll  per  cent,  (.'rop 
year  of  180'4 — Domestic,  55  ])er  cent;  exjjort,  45  per  cent.  Six  months 
of  crop  ]8!)5 — Domestic,  (>7.^  per  cent;  export,  .'52.}  per  cent. 

5.  JJirect  to  forei<;n  dealers. 

0.  Yes;  by  i)ersonal  visits  and  the  establishment  of  ajjencies  and  dis- 
tributing'branclu  ..  With  good  succi'ss  in  l'jn*iiand,  Holland,  Xoiway, 
and  Sweden.     With  poor  success  in  Belgium,  France,  and  (ierniany. 

7.  The  discriminating  duty  on  nninufactured  wheat  products  as 
against  tlie  raw  nuiterial  restricts  our  foreign  trade  and  prevents  its 
extension.  We  believe  the  passage  of  the  Kerr  bill  now  pending  in 
ju'esent  Congress  would  in  a  short  time  remove  the  obstacles. 

8.  The  renewal  of  i)rohibitive  taritfs  by  Cuba,  Brazil,  and  other  South 
American  countries  are  recent  changes  alfecting  our  business. 

1>.  We  believe  the  removal  of  the  discriminating  duty  on  liour,  as 
against  wheat,  bv  Continental  and  South  American  maikets,  would 
emible  us  to  expoit  05  i)er  cent  of  our  entire  Hour  product. 

10.  For  the  crop  year  of  1880,  50,000  barrels  of  tlour;  1894,221,000 
barrels  of  liour,  and  lor  six  m(mths  (U'op  of  1805,  11(1, (JOO  barrels  of 
Hour. 

11.  The  present  expense  for  the  manufacture  of  a  barrel  of  Hour  is 
25  ])er  cent  less  than  six  years  ago;  this  includes  wages  and  all  manu- 
facturing ex])enses,  but  does  not  inciude  tiie  cost  of  raw  material. 

l.'i.  In  Norway,  France,  (lermany,  ami  Hungary;  Cuba  and  Brazil; 
Si)ain;  England,  France,  and  English  mills,  with  the  products  of  Bus- 
sian  and  Indian  wheat. 

14.  To  West  Indian  and  South  American  markets,  ICuro|)ean  com 
petitors  have  a  considerable  advantage  in  the  matter  of  transportation 
aiul  the  collection  of  drafts. 

15.  In  European  countries  where  <mr  products  are  established  we 
tind  tlu'y  h(dd  nuu'h  the  ])reference  with  the  peojde  and  that  higher 
])rices  will  generally  be  i)aid  to  secure  the  better  (pialities  of  American 
manufacture. 

1(5.  Increased. 

17.  We  l»elieve  theuomestic  nuirket  will  absorb  from 05  to  75  ])er  cent 
ol'  the  entire  ()Uti)ut  of  Hour  mills. 

18.  The  general  etlect  of  the  reciprocity  treaties  of  1800  Avas  very 
favorable  to  the  Hour  industiy,  and  their  rep»'al  entirely  cut  off  tlu^ 
exportation  of  liour  to  tlu^  <!ountries  interested, 

10.  Wheat  and  corn,  and  we  inesume  other  foreign  jtroducts,  were 
aifected  directly,  as  were  the  Hour-mill  products. 

20.  We  do  favor  the  application  of  the  reciprocity  i)rinciple  to  future 
tarift'  legislation,  and  believe  this  to  be  the  true  solution  of  the  whole 


^^ 


,!i 


il  ! 


I 


n  w 


1     M       it 


;i 


32H 


RECIPUOCTTY    STATEMENTS. 


lariir  riuostioii.  It  is  fouiMlod  on  coininoi!  sense  aiul  Justice  to  all,  and 
should  nu'ct  all  objections  botlilVom  the  advocates  of  protection  perse, 
and  those  \vlio  lavo!'  free  trade. 


'i  i. 


Thr  WccMj/  NorihwcsUrn  miller. 

The  TTon.  Albert  J.  lIoi>kins,  chairman  of  the  Snbcoinniittee  on  Reci- 
procity aii<l  Coninicvcial  Ti'catics,  sends  out  to  the  business  ])ublic  several 
circulars  bcariiiji'oii  Ihe  stibject  of  reciprocity.  A  set  of  these  has  been 
leceixed  by  the  Korlhwcstern  Miller.  The  first  of  Iheni  is  a  notice  to 
the  eifeot  that  those  who  may  desire  to  appear  belbre  the  subcommittee 
and  ji'ive  infornmtion  as  to  the  value  of  reciprocity  and  the  result  of 
its  re])eal  may  <lo  so,  and  that  hearinj^s  Avill  be^in  Monday,  March  ](>. 
Circular  No.  2  desires  the  expressions  and  views  of  commercial  and 
industrial  orpin i/ations  ui)on  four  points  bearin}>'on  reci])rocity,  which 
are  f>iven.  Hn-  last  circular  is  addressed  to  tirms  or  corporations,  and 
solicits  rej^ies  to  some  twenty  (piestions,  all  having  to  do  with  reci- 
})ro<;i(y  and  the  effect  of  the  lepeal  of  this  ludicy  upon  the  business  of 
llie  concern  sMldressed.  These  inquiries  have  been  forwarded  to  several 
hundred  ])ei'sons,  tirms,  and  cor])orations  engaged  in  the  manufacture 
of  various  ])ro(lucts  which  aie  sold  abioad,  and  we  suppose  that  many 
(»f  them  have  been  sent  to  exjjorting  millers.  If  so,  we  trust  that  the 
rccii)ients  will  take  time  and  troubie  to  rejdy  to  them,  fully  and  jmsi- 
tively,  and  that  tli<»y  will  give  their  tmhesitatingand  vehenuMit approval 
to  the  policy  of  reciprocity,  and  back  it  with  the  argument  of  tacts 
drawn  from  experience. 

As  the  Northwestern  IVriller  is  not  a  manufacturing  corporation,  it 
can  not  very  well  answer  the  twenty  ([uestions  asked  by  Mr.  Hopkins, 
nor  can  it  ap])ear  before  the  subcommittee  in  response  to  the  invitation 
extended.  Assuming,  however,  that  this  subcommittee  is  actually 
seeking  for  information,  with  a  view  to  obtaining  an  intelligent  under- 
standing of  the  needs  of  the  (!0untry  (commercially,  it  will  undertake  to 
answf.'  circular  No.  li,  which  asks  for  views  on  four  points,  as  follows: 

I.  'V'^as  the  effect  of  the  rciin-ocity  arrangements  negotiated  by  the 
(government  witli  certain  foreign  nations  under  the  authority  of  the 
tariff  act  of  181)0  favorable  or  unfavorable  to  the  foreign  commerce  of 
the  United  States? 

II.  VN'hat  was  the  ellect  of  their  repeal  by  the  tariff  act  of  1894? 

.'{.  Is  it  expedient  and  advisable  to  ap])ly  the  reciprocity  principle  to 
futuie  tariff  legislation  and  to  enact  a  general  law  authori/Jng  the 
President  to  negotiate  reciprocity  treaties  with  foreign  nations  so  far  as 
l)ossible '! 

L  What  can  be  atu'omitlished  by  diph)matie  negotiations  in  extending 
the  export  trade  of  the  ITnited  States? 

It  is  hardly  necessary  to  ask  anyone  connected  with  the  milling  trade 
his  opinion  on  these  i)oinvs,  but  we  answer  them  as  follows; 

1.  The  effc(!t  of  the;  rcinprocity  arrangements  referred  to  was  favora- 
bh'  in  tho,  highest  degret;  to  the  foreign  commerce  of  the  United  States, 
and  especaally  to  that  ])ortion  of  it  contributed  by  the  millers,  lieci- 
l>ro(dty  met  with  the  hearty  approval  of  all  millers,  iirespectiveof  ])arty. 
It  was  regarded  as  the  most  intelligent  aid  to  our  foreign  trade  ever 
jiiven  it,  as  a  comnnm-sense,  businesslike  ])olicy,  based  on  prin<'i])les 
Avhich  were,  without  <piestion,  siMind,  logical,  and  thorougldy  good. 
Practi(!al  experience  under  its  ])rovisions,  nuule  by  practical  business 


RPXTi'ROCITY    STATEMENTS. 


320 


ft  to  sill,  and 
utioii  per  se, 


toeoii  Reci- 
iblicsevei'iil 

'ScllilS  1)0011 

a  notice  to 
bcoininittoe 
he  lesnlt  of 
,  March  W. 
nercifil  ami 
)city,  which 
•ations,  and 
)  with  leci- 
bnsiness  of 
d  to  several 
uinnfactnre 
thiit  many 
St  that  tlie 
y^  and  ])osi- 
iitiipproviil 
nt  of  facts 

)oration,  it 

Ilopivins, 

invitation 

s  actually 

out  uiider- 

dertake  to 

IS  follows: 

ed  by  the 

•ity  of  the 

niiierce  of 

.894? 

[inciplc  to 
;in^'  the 
Is  so  far  as 


I'xtending 


linji' trade 


m(Mi,  increased  the  favorabb'  seiiliinent  which  its  inanjiiiration  awoke. 
IJy  its  uioaiis  our  e\])oit  ti-adc  in  Hour  found  new  fields  in  wl'ich  to 
expand  and  develop, and  an  enterprisiii};'  and  a.u'.iiicssive  spirit  was  ^ra*! 
nally  extendin{«onrexi)orts  into  countries  hitlierto  unknown  to  us,  Tiie 
milling' industry  had  Just  bej»un  toa])preciateand])rolit  by  the  reci])rocal 
arran<;'ements,  wlien,  l»y  an  utterly  useless  and  seeinin};Iy  unreas(»nable 
move,  ('onji'ress  conii)letely  destroyed  them. 

2.  The  effect  of  their  repeal  was  extn'iiiely  bad.  It  was  a  blow  at  our 
commerce,  unexi»ected,  nnnecessary,  and  most  ill  advised.  It  resulted 
in  a  serious  lossof  for<'i^n  trade,  with  no  ai)pai'ent  .yain  from  any  (piarter. 

.'{.  It  is  both  ex]>edient  and  advisable  to  api)iy  tin;  reciprocity  prin- 
ci])le  to  future  tarilf  lof^islation.  This  idea  meets  with  tlu^  a])proval  <»f 
millers  generally,  without  reference  to  party.  Tliey  rej^ard  it  as  a  com- 
mon-sense ami  businesslike  settlement  of  the  taritl'  (piestion,  the  true 
])rincii)le  ujxm  which  our  trade  with  foreiji'u  countries  should  be  con- 
<lucted.  A  fjeneral  law  authori/iiifi'  the  President  to  negotiate  reci- 
ju'ocity  treaties  with  foreign  nations,  as  far  as  ])ossible  a.ml  as  soon  as 
possible,  woidd,  in  our  o])inion,  be  of  iiMineuse  advantage  to  our  (^xi)ort 
trade,  and  of  vast  benelit  to  our  country  geiH^rally. 

1.  Much  (;an  be  accompiishe<l  In-  diplomatic  iiegotiati(nisin  extending 
our  export  trad(>.  (Countries  now  closed  to  us  comi)letely  by  ])ioiiibitoi'y 
tarilTs  (;ou]d  un<|uestionably  be  <)])ened  by  such  negotiations.  At  pres- 
ent, so  far  as  American  tlour  is  concerned,  Ave  have  ])ushed  our  trade 
industriously  and  with  enterpriser  and  vigor  in  every  land  from  which 
we  are  not  Itaricd  l)y  tarilfs  so  high  as  to  be  practically  proliibitory. 
jMaiiy  markets  oi)ened  to  us  by  reciprot'ity  have  become  closed  by  its 
rei»eal.     These  might  l)e  easily  recovered  by  intelligent  negotiation. 


Jhn/ton  llcihjc  (Umipduj/j  Dayton,  Ohio. 

The  Dayton  Ihulge  Coiin)any  are  not  doing  any  business  now- 
too  dull.     Cause,  low  prices  of  I'aiiii  products. 


-times 


The  Farm,  Chattanoot/a,  Tom. 

The  maiMfacture  in  wliich  1  am  now  inttrrested  and  managing  is  not 
at  all  alfe<'te<l  by  tariff  or  reciprocity,  «'.xcept  as  these  ])r<)mote  the 
general  prosperity  of  tin'  country. 

1  am,  however,  heartily  in  favor  of  reciprocity  arrangements  with 
foreign  countries  on  the  lines  of  the  McKinley  law. 


Yours,  truly. 


Wii.LAiii)  Warner 


s  favora- 
(1  States, 
Is.  lie(!i- 
lof  ])arty. 
lade  ever 
jrincii)le8 
lly  good. 
Ibusiness 


T.  li.  tJram.  ({rncm.  III. 

Since  England  has  refused  to  receive  any  live  stock  fr<un  us,  why 
not  a]»p!y  same  rule  to  her?  'I'liis  country  furnishes  the  best  stock  on 
tiie  globe,  and  only  importers  want  tiu>-  fad  of  importation  attacdied  to 
tlu'ir  naln«^  to  help  victimize  th»>  uidoiown.  Nine  tenths  of  the  buck.s 
to  be  used  next  fall  were  conli  acted  for  a  month  ago  in  ('auada,  and  at 
such  i»rices  we  can  not  do  anything  only  at  mutton  prices.     Our  exports 


^^ 


aao 


RECII'ROCITY    STATIJMENTS. 


of  slieo])  to  l-iiiftliUKl  loi'  imittoii  havo  Icon  fjrowiiiff  fast,  which  helps 
out  th(!  raiKtliint'ii.  TIm^  cut  oil"  is  ;\  serious  blow  1o  tlM'in,  wliiK'  slio.  in 
return  sends  her  sheep  from  Clanada  liere  at  mutton  priees  for  breeders. 


11 


The  American  Cranberry  Trade  Compani/. 

Tim  Aniorienn  ('riinlxMry  Trade  (/onipany,  prinei|>al  oHlec,  110  War- 
ren street,  N(nv  York,  was  orfj^anized  some  twenty  years  ap)  under  the 
ansj)icesof  the  Ameri<!aii  OranlxMry  (Irowers'  Association  for  the  si)eeial 
pni'pose  of  extendinj^'  the  nnirket  and  demand  lor  eranbeiries. 

For  some  eijjhteen  years  Ave  worked  with  very  limited  capital  and  made 
very  little  i)ro<«Tess;  about  a  thousand  bushels  each  year  was  about  the 
nniximnm  (piantify  shipped;  these  wen^  taken  mostly  in  Liverpool  and 
London.  The*"  did  not  seem  to  be  encouragement  to  continue  and  work 
on  the  same  lines. 

Always  havinji;  had  faith  in  a  forei,un  market  for  our  i'ruit  if  the 
])roper  effort  was  made,  I  interested  myself  to  se(!nre  the  cooperation 
of  the  nmjority  of  the  cranberry  j^rowersof  the  country  in  united  effort 
to  settle  the  question.  I'led.ues  were  secured  of  a  .'3  i)er  cent  ccnitribu- 
tion  of  the  crops  to  aid  in  the  enteri)rise.  It  so  happened  that  the  first 
season  after  securing  tiiese  pledges  the  <'rop  of  the  country  reached  its 
nmxinuun  height  of  about  1,()00,()()()  bushels.  Without  the  general 
knowledge  that  this  effort  was  to  be  made  abroad,  prices  must  naturally 
have  fallen  very  low,  i)ossibly  below  cost  of  ]n'oduction,  but  the  fact 
that  this  effort  was  to  be  made  and  was  being  made  abroad  seemed  to 
serve  as  a  stinnilus  to  the  home  mai'ket.  And  while  1  succeeded  in 
placing  alxmt  5,()(M)  bushels  on  the  other  side,  the  market  at  home 
remained  remarkably  st<'ady  and  uniform  during  the  whole  season. 

If  you  care  for  tlu;  details  of  my  Avork  you  Avill  find  it  ])i'inted  in  the 
several  reports  of  the  in-oceedingsof  the  American  Cranberry  Growers' 
Association,  which  I  mail  yon  under  sei)arate  cover. 

The  financial  results  of  the  enteri)rise  did  not  show  a  profit,  and  by 
the  majority  it  was  not  exi)ected  to;  tliat  Avas  a  secoiulary  ])ur])ose  in 
the  matter.  However,  the  net  price  realized  Avas  above  the  <!Ost  of  ]>ro 
duction,  and  probably  about  equal  to  the  net  returns  of  the  average 
]n'<)ducer.  For  the  last  two  years  wo  have  had  smaller  crops,  for  Avhich 
there  has  been  a  home  market,  and  a  majority  in  interest,  either  Avisely 
or  unwisely,  determined  to  continue  the  enterj)rise  on  a  conservati\'e 
basis,  shipping  only  such  quantities  as  Avould  be  taken  at  fair  prices. 
The  result  has  been  a  sale  each  year  of  about  3,000  bushels,  as  against 
1,000  before  the  effort  Avas  made,  and  Avhen  you  consider  that  this  rej)- 
resented  about  tAvo  months'  Avork  on  my  part,  it  Avould  seen)  to  me  to 
demonstrate  clearly  that  there  is  a  large  market  there  within  our  reach 
if  Ave  Avill  only  make  the  proi)er  effort  to  secure  it.  Just  at  the  present 
time  I  thiidc  cranberry  growers  are  realizing  that  a  inistake  has  been 
'  ade  in  not  having  a  representative  abroad  the  present  season.  With 
a  crop  only  two  thirds  of  Avhat  it  Avas  in  18S3,  cranberries  are  uoav  a  drug 
in  the  market,  and  much  loAver  in  price  than  I  have  CA^er  knoAvn  them 
at  this  season  of  the  year. 

It  is  said  the  Lord  helps  them  that  hel]>  themselves.  We  had  hoped 
that  after  our  effort  to  hel])  ourselves  the  (lovernment  might  do  some- 
thing to  aid  our  industry,  Avhich  has  become  an  important  one.  It 
takes  lands  that  are  imictically  valueless  foi-  any  other  i)urpose  and 
makes  them  productive  as  garden  spots.    We  have  thousands  upou 


liicli  helps 

lii!»'  slui  in 

>i  breeders. 


S  110  War- 
•  under  the 
the  s[)eeial 

1  and  made 
<  about  tlie 
erpool  and 
e  ami  work 

riiit  it  the 
ooperation 
iiited  effort 
t  eontribu- 
atthe  first 
•eached  its 
le  fjeneral 
t  naturally 
it  the  fact 
seemed  to 
weeded  in 
It  at  home 
eason. 
ted  in  the 
Growers' 

it,  and  by 

)ni'])ose  in 

)st  of  pro - 

>  avera<>e 

for  which 

r  wisely 

servative 

prices. 

a{»'ainst 

this  rej)- 

to  me  to 

our  reach 

present 

las  been 

With 

w  a  drng; 

wn  them 

id  hojied 
lIo  some- 
one. It 
>ose  and 
lis  UI)OU 


nr 


UECIPROCITY    STATEMENTS. 


331 


thousands  of  acres  still  umleveloped  of  this  class  of  hmd  that  is  only 
liiiidered  from  <levelopment  by  iear  of  overprocbu^tion. 

On  our  fruit  exi)orted  fo  l'hi,<ilan<l  fheie  is  no  duty,  but  our  exjtorts 
to  ( Janada  are  taxed  heitvily,  and  1  am  satisfied  has  ent  off  unieli  of 
our  trade  in  that  direidion. 


Srsfiinfihaiift  Milliufi  (Unnpany,  St.  Lovia^  Mn. 

The  eflect  of  r<'ciproeity  treaties  negotiated  by  the  Clovernment,  under 
the  tariff  act  of  1S!»0,  was  most  favorable  to  tiie  tn.de  of  Ht.  Louis, 
])eiinittiny'  the ex])ortation  to  forei;;n  countries  of  inci-eased  (|nantity  of 
Hour,  j^rain,  a.nricidtural  implements,  and  other  manufacituied  articles. 

Tlie  etfectof  the  repeal  was  }jfreatly  to  diminish  and  in  some  instances 
to  absolutely  ju'ohibit  shipments  to  those  countries. 

In  our  Ju(lj;nient  the  reeiiactinfjf  of  a  recii)rocity  law  authorizinfj  the 
l'resi<lent  to  ne^iotiiite  treaties  with  foreig^n  countries  would  no  (loubt 
result  in  the  extension  of  trade  relations  to  an  eipial  or  greater  extent 
than  existed  at  the  tinu>,  of  the  reeii)r()city  nvt.  1  )ipIomatic  negotiations 
with  foreign  countries  Avonld  serve;  to  make  known  the  advantage  of 
this  country  as  a  sour<!e  of  sni)ply  of  flour,  grain,  and  manufactured 
articles,  of  which  this  country  has  a  large;  surplus,  and  also  bring  to 
the  knowledge  of  our  pcoph;  the  market  in  which  the  articles  m;tjd«;d 
here  can  be  obtained  to  thj  best  advantage. 


Star  and  Crrsrciif  MiJli)i(i  Company,  (!hiraf/n. 

We  desire  to  call  your  attention  to  the  absolute  necessity  of  some 
eribit  being  made  to  further  the  cstablisliment  of  rcM'iprocal  treaties 
with  the  various  (iouiitries,  both  in  I'^urope  and  in  the  southern  jtart  of 
this  hemisphere,  in  which  in  years  past  the  American  miller  has  found 
a  market  for  his  ])ioduet. 

We  may  well  say  "  in  year.,  past,"  for  by  the  action  of  the  tariff  law 
of  1894  we  have  been  either  absolutely  shut  out  of  these  markets,  or  if 
we  sold  to  them  at  all,  it  has  bern  only  at  ruinous  ])ri(;es  and  to  dispose 
of  the  large  surplus  Avhich  it  is  impossible  to  dispose  of  on  our  home 
nuirkets. 

The  capacity  of  the  American  mills  was  increased  sufliciently  to 
enable  them  to  cater  to  the  trad*',  ami  now  that  they  are  deprived  of 
it,  it  leaves  us  with  a  production  entirely  too  great  for  the  needs  of  this 
country. 

It  is  an  industry  that  h.as  always  been  a  support  to  and  not  a  drag 
upon  the  resources  of  the  country,  and  we  arc  not  now  asking  for  pro- 
tection, but  only  a  fair  show  in  the  (competition  with  our  foreign 
bieihreu.  It  is  a  fitting  and  a  business-like  resolve  that,  as  far  as  pos- 
sible, the  American  miller  shimld  'have  at  least  fin  even  show  to  mill 
the  product  of  the  American  farmer,  but  with  the  discrinnnating  duties 
levied  against  theii  ])roduct  as  compared  with  those  levied  upon  the 
raw  material  by  many  ]<]uroi)ean  countries,  and  the  absolutely  prohib- 
itive duties  of  others,  wc,  have  been  unable  to  hold  our  own.  If  action 
is  i)rompt  this  trade  may  be  regained,  but  if  delayed  much  longer  it 
will  be  very  hard  to  regain  it. 

It  is  uot  a  question  of  large  against  small  i)rofits  for  the  American 
miller. 


31 


i>  ^i 


Bt'i  M 


)k 


'I 


^^ 


332 


RKCIPUOCITY    STATEMKNI'S. 


I  I 

'i'i' 


We  ciui  not  oxi)('<'t  to  do  bettor  tliiui  be  i»l;i(  ii  an  oven  Ibotinj,' 

witli  our  I'orcif;!!  ('oiii|>clitors,  itiid  that  incaiis  a  Noiy  niodorato  ]>rolit, 
hut  it'  Hoinolliiiifj:  is  not  (lone  to  ciialilc'  ns  to  lind  a  niiiricot,  for  our  snr 
pins  product  abroad,  t lion  \\v  will  be  ronlrontrd,  ;is  now,  by  a  situation 
tiiiit  moans  notliin;^  loss  than  disaster  for  all,  and  bankruptc^y  tor  many 
nu'inbors  Oi"  a  branch  of  nnmufacturinf;"  which  has  certainly  heretotbro 
boon  a  credit  to  the  country. 

Wo  wish  a}j;ain  to  call  your  earnest  attention  to  the  subjoit  and  t()  try 
and  enlist  your  sorvi<'os. 

We  have  certainly  had  enough  of  trouble  in  business  circles  to  make 
it  (►blij;atoi'y  on  every  good  citi/on  to  <h»  everything  in  his  powc-v  to 
relieve  the  situation. 


"1M. 


Ariston  MUlinti  (loniiHini/,  Aristoii,  III. 

Since  the  abrogation  of  the  roci)>i'ocity  ti'cMties  we  millers  have  had 
a  hard  row  to  hoe.  l"'ormorly  we  export<Ml  one-half  <»l'our  output  to  the 
South  Anu'rican  countries,  Cuba,  and  Puerto  Kico,  and  now  wo  either 
have  to  li(^  idle  or  throw  our  goods  on  the  American  mai'kot,  which  is 
alroa<ly  overcrowded.  This  is  working  a  great  hardship  on  thousands 
of  people  and  will  <M)st  the  millers  of  the  I'nited  States  millions  of  dol- 
lars, unless  the  (ilovorument  takes  a  hainl  an<l  gives  ns  a  chance  for  our 
Just  dues.  ^^'(^  «lo  not  ask  anything  only  1o  be  let  into  other  countries 
on  an  eiinal  footing  with  others.  Our  goods  and  Ann^rican  jtluck  and 
brains  will  do  the  rest.  Your  earnest  '*upi)ort  for  this  bill  is  soli(;ite«l, 
and  if  ever  a  ehain-e  is  given  will  bo  '      'U'ocated. 


Farircll  <(■  RhincHi  Watrrtnirn,  K.  Y. 

We  are  deeply  interested  in  the  question  of  roci])i'oeity  between  this 
and  other  countries. 

The  tlour  manufacturing  industry  of  the  United  States — than  which 
there  is  none  more  important — is  seriously  suffering  through  unjustdis- 
crimination  in  h^uvope  and  South  America  against  American  tlour.  The 
re(!ii)rocity  arrangements  under  the  taritf  act  of  1S!)0,  though  given  lit- 
tle time  in  whiidi  to  show  their  value,  resulted  in  a  notable  increase  in 
exports  of  American  breadstutfs.  The  repeal  of  tliis  act,  we  believe, 
has  contributed  largely  to  the  paralysis  ami  dangerous  demoralization 
of  tlour  milling  in  this  country.  We  need  not  cite  statistics,  with  which 
you  are  doubtless  more  familiar  than  we. 

Other  Governments  Jealously  guard  the  interest  of  their  tlour  manu- 
facturers, ami  seem  to  consider  ihem  of  national  imi)ortance.  W'hy 
should  not  oursf  Wo  believe  the  bill  known  as  II.  14.  ;?21U,  recently 
leforred  to  the  Ways  ami  Means  f)<mimittee,  will,  if  it  becomes  a  law, 
be  of  in(!alculable  bonelit  in  this  dirv<»cti)n.  Thisbelief\  and  our  anxiety 
for  relief,  is  our  apology  for  thus  addrc^ssing  you  ]»ers(mally  to  ask  yon 
to  do  all  you  can  to  aid  in  the  passage  of  this  bill  now. 


HECiPUOCITY    STATEMENTS. 


333 


t  {UmI   to  tl'V 


Anrhor  Mill  Compnnif,  Superior,  Wis. 

Wo  rospoct fully  desire  to  cull  your  attention  to  the  hill  now  before 
('oiiyiess  known  as  II.  11.  ;{2lL',  wliicli  intends  to  reston'.  recipnudty 
iin'iiiificnieiils  with  forei^^n  (-(Mintrics  as  pre\'ionsly  existed  und«n'  the 
tarill'  act  of  ISilO.  lOvri'  since  tlu'seariaiij-cincnts  were  repealed  by  the. 
tariff  of  181)4  the  llouriiiin'  mills  of  this  country  have  had  <'nt  olf  from 
them  a,  \my  Iar^<'  aniomit  of  c.\])ort  trade,  the  loss  of  which  has  Ix^en 
th(^  means  of  makiiiji''  tiic  (;oinpetit  ion  at  home  so  keen  that  profits  have 
entirely  disa|»peared,  and  instead  there  is  to-day  hardly  a  mill  in  tlu! 
country  but  what  has  a  balance  on  tlu^  wrou};'  side  of  the  ledj^cr.  l''or 
tlic  i-elief  of  this  immense  industry  it  is  absolutely  nei-essary  that  this 
bill  b(^  nnide  law,  as  oidy  throufih  it,  or  throuji'h  some  measure  ha\in;^- 
in  end  the  same  view,  can  this  industry  attain  the  strongly  desired  and 
much-needed  relief. 


The  Xrir   Vorl-  Binruit  Coiiipaiiii,  Xcir  Yorli,  X.   V. 

During;-  the  period  in  wliich  tlu^  re(tii)rocity  a»'l  was  in  existence  the 
sales  in  Cuba  of  the  old  Van  Derxeei-  ^:  Holmes  <3om])any,  now  inc^or- 
])orated  in  this  concern,  were  fully  oO  jx'r  cent  better  than  they  wei'e 
previous  totluanstitution  of  the  reciprocity  treaty.  Since  its  abolition 
oar  sales  in  that  island  hav(>  materially  (lecreased,  but  of  course  bad 
busin(^ss  and  tiu^  present  war  are  larj^ely  res])()nsible  fortius. 

Personally,  I  am  in  favor  of  anytlunj;'  that  will  have  a  tendency  t() 
lower  tari'''  in  (iireijjn  conn  tries,  because!  it  is  only  under  such  conditions 
that  we  can  si    cessfully  trade  with  them. 


!| 


4    I 


t  ween  this 


Thompson  MlUimj  Compant/,  Ijochjtort,  X.   V. 

When  the  so-called  McKiidey  tariff  was  enacted,  with  tlu^  reciprocity 
feature,  which,  if  oui"  memory  serves  us  rijj^ht,  was  done  by  tlu'-  lamented 
llon.ilames  (i.lUainehavingthis  re(apro(;ity  clause  included,  it  brouf^ht 
iiicat  relief  to  tiie  millers  of  the  I'nited  States,  Ix^cause  there  is  always 
a  <;reater  demand  for  our  raw  material  (the  jurain)  than  the  manufac- 
tured article  (the  Hour).  It  is  unnecessary  to  call  to  your  distinguished 
consideration  what  a  very  j^reat  benefit  it  would  be  to  this  country  if 
rlui  1(M),0(I(),0(M)  bushels  or  nior(^  of  wheat  exported  annually  could  be 
inanufacture<l  into  flour  first,  instead  of  being  sent  abroad  loi  foreiyn 
labor  and  nulls  to  turn  into  Hour. 


lur  niaTui- 


(rforffc  TomUnsnn  tO  Son,  ZVr/w/,  X.  Y. 

The  awful  depression  in  the  millin<;'  business  calls  for  relief.  If  it 
be  in  the  power  of  Confess  to  do  anythiufj;"  to  relieve  this  terrible 
stay-nntion  it  ou<;ht  to  be  done. 

VVe  need  the  legislation  during  this  session  of  Congress,  lluin  is  in 
sight.  Millers  are  already  in  the  breakei's.  If  we  are  compelled  to 
;nvait  .1  change  of  administration  there  is  no  telling  the  magnitude  of 
Uie  [tending  disaster. 


b34 


(ii   -lit 


I  !  M 


M 


KECIPIiOCITY   STATEMENTS. 
Cumberland  MilLsy  NaNhvillc,  Tenn. 


This  company  is  deeply  interested  in  all  that  is  being  done  toward 
bringing'  abont  the  recii)roi'ity  measure  Jiow  before  the  Ways  and 
Means  Committee  of  the  House.  This  is  a  matter  of  vital  iiiii)ortaiU'e 
to  the  milling  interest  of  this  ('ountry,  and  it  is  one  that,  as  a  business 
measure,  ought  to  have  immediate  attention.  >. 


Mofich}!  i{:  MoUvy  MUlimj  dnnpany^  Itochvsicr,  X.  Y. 

The  Hour-manufacturing  industry  of  this  country  (which  is  its  greatest 
and  most  im[»ortant  industry),  owing  to  conditions  favorable  to  growth 
and  progress,  and  relying  upon  an  outlet  for  its  i)roduct  through  ex[iort 
trade,  has  attained  a  producing  capacity  far  in  excess  of  the  demand 
for  domestic  consumption. 

The  tiiritf  Ifiws  of  most  countries  of  the  Eastern  Hemisphere  so  dis- 
criminate against  American  Hour  in  favor  of  our  wheat  (to  the  extent 
of  absolute  prohibition  for  Hour  in  many  instances),  that  although  our 
Hour  mills  are  not  being  operated  to  more  than  half  capacity,  over 
1(U),(KI0,()()0  busiiols  of  wheat,  or  about  one-fourth  of  the  aveiage  ci-op 
of  this  country,  are  annually  sent  abroad  to  be  milled  and  sold,  not 
only  in  the  country  where  ground,  but  also  to  come  in  competition  witli 
Anu'rican  Hour  in  other  countrii,s. 

European  (Jovernments  ]irotect  and  foster  the  interests  of  their  Hour 
manufacturers,  deeming  their  success  of  national  importance.  Aiuerit-an 
millers  niust  receive  like  assistance  from  this  (lovernmeut,  or  they  can 
not  live  .md  prosjjcr. 

The  rei)eal  of  the  act  of  l.S*.K>  by  the  tariH"  of  181)4  proved  a  serious 
setback  to  the  export  trade,  as  is  clearly  demonstrated  by  statistics. 
The  exportt;  of  Hour  alone  to  South  American  countries,  Avhich  showed 
an  increase  annually  from  1801  to  18!)4,  dropped  off  in  one  year  (from 
1891  to  1805),  from  .*3,2o;),17<)  lo  i?2,7L'({,r>58,  and  in  Spanish-American 
countries  the  prohibitive  duty  imposed  at  once  on  American  Hour  cut 
us  off  fiom  all  the  valuable  trade  which  had  been  accpiired  there  under 
our  ic'.'iprocity  treaties. 

If  imjuediate  legislation  is  not  had  to  restore  the  conditions  enal>iing 
us  to  recover  our  trade  iu  these  foreign  countries,  it  will  be  i)ern»;Miently 
lost-  We  are  conviiu'e''  Uiat  it  may  be  recovered  by  the  assurances  of 
former  customers,  who  desire  to  purchase  our  Hour,  if  possible,  and  we 
are  also  contident  that  developnu'nt  of  the  same  i>rinciples  wliich  have 
gained  us  a  foothold  in  <'ountries  of  the  Western  Ileiiiis])here  will  [)ush 
tlour  made  in  the  I  nited  States  into  all  markets  (d'  the  world. 


MUcH  «(•  /sVxj,  Frank/ort,  Ky, 

We  do  not  c«Misider  this  a  party  «}uestion,  but  the  millers  are  In  sueh 
sore  need  of  sonM^  relief  along  this  line  that  they  would  certainly  led, 
as  a  class,  very  kindly  toward  whichever  party  should  be  instruinenial 
in  securing  relief  that  would  enable  them  to  do  a  prohtabh^  business. 

The  milleis  felt  very  much  encouraged  witli  the  prospect  of  large 
iiiarkets  in  ('aba  and  South  Ameiiea  m  hile  the  reciprocity  nieasuies 
were  in  force,  but  they  did  not  remain  in  force  long  uuougU  for  the  milla 


RECIPliOClTY    STATEMENTS. 


335 


one  toward 

Ways  and 

iiii])()rtaiice 

i  ii  biisiiiess 


V. 

1  its  jireutest 
c  to  growth 
ough  exi»ort 
tli'3  demand 

)herc  so  dis- 
o  till'  extent 
Itlioiigli  our 
paeity,  over 
iveragc  erop 
id  sold,  not 
)etitiou  witli 

)1"  tlieir  llotir 

^   Anieriean 

or  tliey  ean 

d  a  serious 
statistics. 
ivAi  showed 
year  (from 
-American 
I  flour  cut 
ere  under 

ns  enalhing 
■iiiK'iiently 
surances  ol" 
)le,  and  we 
which  havi', 
e  will  push 


iiie  in  such 

taiiily  leei, 
>(rmnenial 

Ibusiness. 
•t  of  large 
'  iiieasuies 

Lr  the  lailld 


as  a  class  to  become  established  in  those  markets.  We  are  satisfied 
that,  should  the  jtroper  measures  be  enacted,  the  mills  of  this  country 
could  and  woiihi  grind  all  the  wheat  raised  here,  thus  giving  employ 
uient  to  large  numbers  of  our  own  jieople.  We  desire  esjiecially  to  call 
your  attention  to  the  competition  which  we  are  compelled  to  meet  from 
tin'  French  millers.  Their  tarilf  acts,  pra(!ticaliy,  as  a  bounty  on  all 
flour  exported.  Ucing  jirotectcd  in  their  home  markets,  they  can  sell 
there  for  high  prices.  With  a  bounty  on  exports,  they  ean  sell  in  foreign 
markets  lower  than  others.  They  hi'-e  been  selling  tlour  in  (Ireat 
Britain  for  less  money  than  any  Aiiier..;an  miller  can  afibrd  to  sell. 


Hmirilcy  Jh'o.s.  cO  Co.,  Doi/lcstown,  Pa. 

As  mend)ers  of  the  I'euMsylvania  Millers'  State  Association,  we  have 
been  reiiucsted  to  write  ^ou  in  supporting  If.  IJ.  .'•IML',  a  bill  urging  the 
establislting  of  the  reciprocity  act,  set  forth  in  an  appeal  of  Mr.  I>arry, 
secretjiry,  of  JMilwaukee,  Wis.  Milling  in  our  State  has  assumed  a  ter- 
rible state  of  affairs,  and  <iiiything  that  can  be  done  on  your  part  would 
undoubtedly  relieve  the  millers  of  their  burdensome  position  in  (he 
milling  business. 


.l>((i(j:'hiii  Holler  Flourimj  Millt;,  Daitpliiii,  Pa. 

To  save  the  milling  industry  of  our  country  it  is  necessary  to  have 
some  <l;tferent  legislation  than  that  which  is  in  Ibrce,  Since  Mr.  iJIaine's 
ideas  of  reciprocity  have  been  abandoned,  niilliiig  has  bc«'ii  rotten. 
Will  you  do  what  you  can  for  the  restoration  of  these  treaties!?  I>y 
doing  so  you  will  confer  [U'osperity  to  the  milling  iiulustry  and  all  who 
are  dependent  thereon. 


Billiard  i(;  Ballard  (Jompain/,  LomsrilU,,  Ky. 

ll^nder  flic  reciprocity  treaties  negotiated  by  ex-Secretary  Hlaini',  the 
Houi'  industry  was  in  (piite  a  satisfactory  shape,  but  the  action  of  Con- 
gress in  passing  the  Wilson  bill  has  put  us  in  i1k>  hole. 


MitlhoKrna  Mills  Companti,  Phitadtlpliia,  Pa, 

We  earnestly  ■.•.ige  favoiableand  sjicedy  acti(»n  at  the  present  session 
of  ('ongress,  as  the  relief  it  c<Mitemplatcs  would  be  the  greatest  possi- 
bh^  boon  to  the  fraternity  in  which  unfortunately  we  are  deeply  inter- 
ested. 


Thr  Isaac  Barter  Compauif,  Fostoria,  Ohio. 

While  it  was  in  etfoct  in  conniH'tion  with  the  McKinl(\y  taritf  bill  this 
mill  (Ml joyed  a  large  trade  with  tln^  island  of  ('iiba,  and  particularly  in 
Haliaiia.  Since  reciprocity  has  been  icpealed,  w(^  iiave  jiractiiraliy  lost 
all  of  this  trade,  which  amounted  to  about  75,000  barrels  per  yeui' to 


I 
m 


336 


RECIPROCITY    STATEMENTS. 


this  mill  alone.  The  total  coiisntnpiion  of  winter  wheat  flonra  in  Cuba 
was  upward  of  1,(>()0,()0()  bairels  per  year.  Nearly  all  of  this  has  now 
been  lost  to  the  United  States  and  lias  gone  baek  to  Spain,  whieh 
country  has  since  been  sujjiilying  tlie  island.  We  nrj;e  upon  you  the 
necessity  of  brinyinj;'  i  his  bill  to  vote,  and  we  also  urge  upon  you  to  use 
your  very  best  etlorts  lor  its  adoption. 


The  Cleveland  Milling  Company,  Limited,  Cleveland,  Ohio. 

2.  Flour  from  winter  wheat. 

3.  Capital,  $;wr),00();  numberof  persons  employed,  85;  value  of  annual 
output,  $1,()0(),()()0. 

4.  We  market  about  50  per  cent  of  our  output  in  the  Uuited  States 
and  50  per  cent  abroad. 

5.  We  sell  direct  to  foreij^^n  dealers. 

G.  We  have  sent  a<ients  to  foreign  countries,  and  corresponded  with 
buyers  in  those  countries  for  the  purpose  of  increasing  our  business 
abroad,  and  were  meeting  w^ith  good  success  until  the  abrogation  of 
reciprocity  relations  with  such  countries  compelled  us  to  desist  in  our 
efforts. 

7.  France,  Germany,  Belgium,  South  America,  and  Cuba  have  within 
recent  years  enacted  laws  which  have  either  shut  out  Americau  Mour  or 
subjected  it  to  such  customs  regulations  as  to  lessen  the  volume  of 
ex[)oits  and  render  the  shipment  of  (lour  to  those  countries  unprolitable. 
\N'e  would  suggest  that  a  return  to  reciprocity  relations  and  retaliatory 
measuK's,  similar  to  those  ju'escribed  by  the  McKinley  bill,  and  such  as 
are  incorporated  in  the  Kerr  bill  (IJ.  K.  321L*),  now  pending,  or  about  to 
be  brouglit  before  the  House  of  Kepresentatives,  will  uuiterially  aid  in 
bringing  back  this  trade,  and  thereby  greatly  increase  the  sale  of 
American  Hour  abroad. 

8,  JJelgium  hasrecently  made  a  change  in  customs  laws  discriminating 
against  American  tlour  in  favor  of  American  wheat.  France  and  (!er- 
numy  enacted  laws  several  mouths  iirevious  to  Belgium  on  the  same 
lines, 

t>.  The  removal  or  reduction  of  customs  duties  inii)osed  by  foreign 
nations  upon  the  merchandise  in  which  we  deal  would,  uo  doubt,  increase 
our  business  abroad  by  at  least  50  per  cent. 

10.  Our  output  is  now  about  75  ])er  cent  of  what  it  was  six  years  ago. 

11.  Six  years  ago  wheat  was  worth  about  85  cents  per  bushel  at  our 
mill.  Today  it  is  worth  about  70  cents.  Wages  aie  practically  the 
sauK',  now  as  then;  but  have  been  obliged  to  curtail  expenses,  and 
thereby  reduce  our  force  of  employees.  Transportation  rates  by  sea  and 
land  are  somewhat  less  than  six  years  ago,  due  to  the  fact  that  so  little 
American  Hour  is  now  being  exported  that  steamshi])  companies'  cai)ac- 
ity  is  greatly  in  excess  of  the  freight  moving,  hence  comi)elition  for  the 
small  (piantity  that  is  to  be  moved. 

12.  Floui  is  now  selling  from  70  cents  to  $1  jier  barrel  less  than  six 
years  ago. 

13.  We  have  during  the  ])ast  year  met  with  ruincma  comi)etition  in 
Great  Britain  markets,  esjiecially  in  London  and  Liverixiol,  from  the 
inroads  of  foreign  tlour,  particularly  that  made  in  France,  where  the 
millers  have  a  system  of  rebates  which  enables  them  to  practically 
inij)(»it  wheat  without  cost  of  duty  if  a  certain  tpiantity  of  Hour  is  ex- 
poiteU.     Up  to  Jauuary  1,  lbD5,  we  sold  about  35,000  barrels  of  Hour 


RECIPROCITY   STATEMENTS. 


337 


in  the  London  maricet.     From  January  1,  1895,  to  January  1,  1896,  we 
have  not  been  able  to  sell  a  barrel  in  that  market. 

14.  Foreifjn  coniixititors  have  not  much  the  advantage  of  us  in  trans- 
portation cliarpfes,  nor  have  they  any  advantaj>e  in  the  cost  of  manu- 
facture.   It  appears  to  be  sini]»ly  a  matter  of  duties. 

15,  We  cai, ,  without  doubt,  place  our  Hour  in  comj)etition  with  foreign 
manufacturers  in  quality  and  prices  if  American  Hour  is  not  discrim- 
inated against  in  favor  of  wheat. 

1(1.  We  do  not  believe  the  total  product  of  ilour  in  the  United  States 
has  decreased  imich,  if  any,  during  the  last  six  years.  Reference  to  the 
tables  of  export  of  American  Hour,  to  which  you  no  doubt  have  access, 
will  show  you  i)hiinly  to  what  extent  the  ])ossible  output  in  the  line  of 
flour  manufacture  can  be  increased  under  suitable  laws  and  reciprocity 
relations. 

17.  Flour  exported  from  the  TTnited  States  for  1894  was  16,859,553 
barrels;  exports  of  Hour  for  ISOOequaUed  12,082,691  b.arrels,  showing  a 
giiin  in  exjmrts  during  the  short  time  reciprocity  relations  were  estab- 
lished of  4,77(J,842  barrels.  The  out])ut  of  Hour  mills  in  this  country  in 
tlie  above-named  years  wiis  about  55,()0(>,(i(K»  barrels  yearly. 

18.  Keci]»rocity  treaties  made  in  1890  favored  the  export  trade  of 
flour  very  much,  and  the'r  repeal  tore  down  all  theetfort  that  had  been 
exi>ended  to  build  up  trade  in  Kuroi)ean  countries. 

19.  The  ett'ect  upon  farm  i)roducts  is  eflectively  shown  by  statistics 
issued  by  the  Agricultural  Dejiartment  at  Washington,  giving  the 
value  of  wheat  to  larmers  during  the  period  that  reciprocity  relations 
were  in  vogue  aiul  since  their  re])eal. 

20.  We  urgently  favor  the  apjilication  of  the  reciprocity  principle  to 
future  tariil"  legislation,  and  tlie  enactment  of  a  law  authorizing  the 
President  to  negotiate  recii)rocity  treaties  with  both  the  European  and 
American  uatious  so  far  as  possible. 


Commercial  Milling  Company,  J^ctroit,  Mich. 

The  milling  iin'iistry  is  sadly  demoralized  for  the  lack  of  broader 
maikcts.  Tliere  is  enough  milling  capatnty  in  tiie  United  States  to  sup- 
l)ly  the  donuisti(;  trade  by  running  three  months  out  of  the  year.  You 
can  therefore  readily  sec  that  reciprocity  is  what  this  industry  sadly 
needs.     We  are  all  anxious  for  wider  ma     'ts. 

Our  representatives  by  ])assing  this  biii  will  give  us  these  markets, 
aii<l  we  see  no  reason  why  the  desired  relief  should  not  be  extended  to 
the  milling  industry,  and  it  would  be  a  benclit  to  the  whole  country  and 
will  be  indorsed  by  tii(^  business  community  unanimously. 

It  will  give  the  iarmer  better  inices  for  Ids  wheat  and  a  (piicker  and 
more  active  maiket,and  at  the  same  time  be  "a  feather  in  the  cap"  for 
the  politician  that  will  bring  this  about. 


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T>,  R.  Tiarhrr  d"  Son,  MinneapoUft,  Minn. 

We  et,-,n  not  advance  any  new  arguments  why  we  should  have  rer;ip- 
rocal  tiadc  with  Ibrcign  <(iiiiitrics  that  you  do  not  know,  but  we  can 
asHurj  you  that  it  is  of  vital  importance  tooiir  business,  and  we  beg  that 
you  lend  your  powerful  i;  lluence  to  the  passage  of  the  bill  11.  II.  3212. 
ir.  liep.  2263 22 


ii^i 


^ 


338 


RECIFROCITY   STATEMENTS. 


m 


11 


ili 


Rcgina  Flonr  Mill  Company,  St.  Louis, 

2.  MniinfiH'tniini,  Hour. 

3.  Cai)itiil,  !< I( !(),"( »( 10;  ill  iictnal  use,  $L'00,000.  Employ  43  porsons. 
Y:\hw  oramiual  piodiict  vaiie.s  In.ni  .*t()(M)0()  to  $0()(>,<K)(). 

4.  Our  iiiai'ket  is  both  at  iiouu'  and  abroad;  proportion — home,  85 
per  cent;  Ibrcijjjn,  15  ])e.r  cent. 

5.  Wo  sell  direct  to  lbreij;n  dealers. 

0.  We  have  ha<l  aj-ents  travelinj»'  in  I'iUrojje  and  the  West  Indies, 
sni)pleniented  by  circulars  and  correspondence. 

7.  We  are  well  aware  of  discriminations  and  obstacles  in  the  laws  of 
foreign  countries  that  hindei',  restrict,  or  i)revent  our  tradinj;'  with 
them.     One  way  to  rcnutve  them  is  by  ne,uotiatinjjf  si)ecial  treaties. 

8.  h'rance  has  ](ut  discriminatii'fi'  (lutics  on  Hour  far  in  excess  of  the 
dut  ies  on  wheat.  l>y  their  rulinj;s  on  drawbacks  they  practically  give  a 
material  bounty  on  Hour  ex])orts,  enablinji'  French  millers  to  compete 
su(;cessfully  witii  American  millers  in  foreign  markets.  Thus  we  ai'e 
not  only  shut  out  of  French  markets,  but  Ave  are  unfairly  handicapi)ed 
in  the  competition  in  other  foreign  markets.  IJelgium,  a  shoit  time 
ago,  also  put  a  discriminating  duty  on  Hour  com])ared  to  wheat.  Swe- 
den and  iS'orwi'.y  have  done  the  same  recently.  Tiie  great  advance  in 
<luty  on  Hour  in  C'u])a  compared  to  that  on  Hour  imported  from  Spain 
irnnu'diatcly  checked  our  exports. 

!>.  The  removal  or  reduction  of  duties  on  our  Hour  by  tbreign  coun- 
tries wouhl  undoubtedly  I'acilitatc  the  extensi(»n  of  our  export  business. 

10.  Our  output  is  but  50  ])er  cent  of  what  it  was  six  years  ago,  due 
l)arlly  to  the  unfavorable  customs  of  fineign  nations,  i)artly  to  unprolit- 
al)le  pri(tes  due  to  home  comi)etition,  which  competition  has  become 
m<»re  severe  because  of  reduced  exports,  and  also  because  of  the  insane 
increase  in  number  of  mills,  especially  at  country  ])oints. 

11.  C  )st  of  ])i"<)duction  is  somewhat  less  now  tlian  six  years  ago, 
mainly  in  the  item  of  cost  of  wheat.  Six  years  ago  Ko.  li  red  wheat 
Sold  here  at  78  to  70  cents.  Today  it  sells  at  70  cents,  an  excessive 
])rice  compared  to  value  of  si)ring  wheat.  The  cause  is  the  faiiur*^  of 
the  winter  wheat  croj)  last  season.  Coal  is  about  1  cent  per  bushel 
less.  Wages  are  hardly  less.  Transportation  to  seaboard  is  about  15 
ju'r  cent  less, 

115.  Flour  is  fidly  (»0  cents  per  barrel  lower  than  six  years  ago. 

13.  French  Hour  competes  actively  and  successfully  with  ours  in 
Great  lUilain,  ik'lgium,  and  Holland. 

14.  The  advantage  of  French  nnllers  is  iu  the  practical  bounty  they 
get,  in  lower  wages  to  operatives,  and  iu  quicker  delivery  of  Hour  to 
buyer. 

15.  Under  nntranimeled  conditions  we  can  compete  with  foreign 
manufacturers  so  as  to  supply  the  importing  countries  with  most  of  the 
Hour  they  need  above  their  own  wheat  ]>ro(luction. 

10.  Through  the  increase  of  ndllingcapacity,  especially  in  the  North- 
west, the  Hour  jtroduction  of  this  country  has  increased. 

17.  Our  home  onsumption  of  Hour  is  estimated  to  be  about  equal  to 
315,000,000  bushels  wheat  per  year.  The  natural  surplus  lor  export 
would  hv  all  of  the  croj)  iu  excess  of  this  (puintity.  Our  mills  could 
grin<l  it  all  if  they  had  untrammeled  foreign  markets  oi)ened  to  them. 

18.  Tli'i»  general  ellect  of  reciprocity  treaties  was  most  nunked  on  our 
Hour  exiiorts,  because  in  tliis  liiu'  we  excel  in  cheai)ness  and  (puility, 
no(»thcr  country  at  this  time  h.iving  equal  natural  and  acipiired  advan- 
tages as  we  have  uow — excellent  quality  of  wheat,  most  perfected  mills, 


RECIPROCITY   STATEMENTS. 


339 


porsons. 
liuuie,  85 

,t  Indies, 

fi  laws  of 
iiij;-  with 
ities. 
^s!i!  of  the 
lly  {livea 
•  compete 
IS  we  are 
(licapi)e(l 
holt  time 
at.  S'.ve- 
Ivaiiee  iu 
oin  Spain 

lij^n  coun- 
Imsiness. 
i  a.u'o,  due 
>  unpiollt- 
is  hecome 
lie  insane 

ears  ago, 
ed  wheat 
excessive 
failure  of 
>r  busliel 
about  15 

It  ours  in 

inty  they 
If  Hour  to 

II   foreign 
hst  of  the 

lie  North- 
equal  to 
|)r  cxi»ort 
Ills  could 
to  them, 
'd  on  our 
(Hiality, 
Id  ad  vau- 
lted mills, 


ready  moans  of  transportation  by  rail  or  water  at  comparatively  moil- 
eiate  ])ri('es. 

IS).  Answered  in  i)re<'eding  paragraph. 

20.  We  do  most  <lecidedly  favor  reciprocity  treaties  as  being  the  part 
of  practical  ]>oliti('s.  We  do  not  yet  live,  in  an  ideal  age,  when  nations 
will  <;oncede  to  each  other  all  their  natural  advantag«s,  but  rather  we 
sec  that  each  one  tries  to  get  the  advantage  over  the  other,  the  same  as 
private  parties  or  iudividuals  do  in  their  private  dealings. 


Euegely  Millin</  Company,  N'oshville,  III. 

TTopiug  we  will  not  intrude  too  mwvM  u])on  your  valuable  time,  we 
would  beg  to  call  your  attention  to  11.  It.  bill  No,  .'tLllU,  now  before  your 
honorable  committee.  As  exi>orters  of  Hour  we  are  considerably 
interested  in  the  passage  of  this  bill,  which  we  hope  will  take  ])lace  at 
an  early  date.  It  seems  to  us  that  it  is  beyond  question  that  the  pas- 
sage of  this  bill  will  prove  of  vast  benetit  to  the  business  interests  of 
our  whole  country.  It  is  also  an  incontrovertible  fact  that  the  repeal 
of  the  reciprocity  treaties  of  1890  has  [)roven  very  harmful  to  Anu'rican 
industries.  The  st;  tistics,  evidence,  aiul  statements  furnished  your 
committee  conclusively  ju'ovethis,  and  our  own  experience  as  expcu'ters 
of  flour  to  Europe  and  the  West  Indies  c()nq)els  us  to  fully  indorse  all 
statements  furnished  the  committee  by  the  friends  of  reciprocity. 

This  country  exports  annually  about  one  fourth  of  its  wheat  cro]», 
owing  to  the  tariff  laws  of  nearly  all  Kuropeau  count  lies,  which  dis- 
criminate so  much  against  American  iiour  in  favor  of  American  wheat. 

If  no  such  discrimination  existed  this  wheat  could  be  ground  by 
American  mills  (which  are  running  but  half  capacity),  thus  enhancing 
the  price  of  wheat  and  giving  einployment  to  large  numbers  of  our  now 
idle  people.  13ut  under  existing  conditions  this  fourth  of  our  wheat 
is  sent  abroad,  there  to  be  ground  and  sold,  not  only  in  the  (louiitiy 
where  milled,  but  also  to  come  into  competition  with  Amevican  tiour  in 
other  countries. 

Our  own  export  trade  to  Cuba,  for  instance,  whicii  had  assumed  hand- 
some proportions  and  in-omised  to  incrt^ase  rapidly,  is  literally  wiped 
out  under  present  conditions,  while  that  to  European  markets  has  also 
suffered  considerably.  However,  we  ileem  it  unnecessary  to  present 
further  arguments.  You  have  ample  evidence  before  ihe  committee 
that  the  repeal  of  the  reciprocity  treaties  worked  great  harm  to  Ameri- 
can industries,  and  also  that  the  past  has  taught  us  fhat  tlic  euactnient 
of  reciprocity  treatii  '  ha?-,  proven  of  great  benefit  to  the  whole  country. 
The  princii)leof  reciprocity  will  commend  itself  to  everyone  having  the 
best  interests  of  his  country  at  heart. 


Taylor  Brothers  Milling  Company,  Qnincy,  TU. 

"We  can  hardly  hope  to  add  anything  of  value  to  what  has  already 
been  said,  but  it  is  our  belief  the  millers  are  not  asking  for  favors  at 
the  hands  of  our  Government,  but  siaqily  for  such  le;iislation  as  is  dic- 
tated by  sound  business  juiuciples.  The  great  advantages  seiaired  by 
the  act  of  1S9(>  can  readily  be  proven  by  tJovernment  statistics,  an(i, 
we  believe,  aie  uuquestioued;  also,  the  loss  of  these  beucUts  cau  be 


^   M 


340 


RECIPROCITY   STATEMENTS. 


II 


)   S!t 


equally  well  proven  by  statistics  of  exports  since  the  passaj^e  of  tariff 
bill  of  iH!M.  We  believe  tliat  oiu  tiadi^  in  forcifjn  comitries,  which  has 
been  lost  throngh  (liscriniinatiii;;  tiifitt's  in  favor  of  wheat,  and  i)racti- 
cally  pr<»liil)iting  Honr,  can  all  be  rej;aine(l  and  larfjcly  increased  if 
])ro])('r  lejii.slation  is  had  withont  delay,  but  if  tliis  does  not  come  soon 
our  trade  in  these  fortM^ii  countries  will  be  ]»eriiianently  lost. 

European  (Tovernuien.ts  ajipear  to  he  doiii,;;-  all  that  they  can  to  pro- 
tect and  enconraj'-e  the  interests  of  their  tlour  manufacturers,  as  their 
success  is  certainly  a  matter  of  national  importance,  and  Ameri(;an 
luillervS  nmst  receive  assistance  of  a  similar  luiture  from  our  Government, 
or  the  trade  can  not  liope  for  prosperity. 

We  believe  the  Icj^islation  asked  for  by  the  millers  is  only  such  as  is 
dictated  by  sound  business  principles,  but  it  is  feared  thatowiii^-  to  the 
present  Coiijjiess  beinji;  so  reluctant  to  touch  ui»on  tarilf  lejiislation,  the 
bill  will  simply  be  referred,  to  the  next  session  and  action  indefinitely 
I)osti)oned.  This  means  we  shall  not  get  any  relief  for  two  years  or 
more.  We  need  this  relief  at  once,  especially  at  this  time,  in  order  that 
the  benetits  nuiy  be  obtained  from  the  comiii;;'  crop  of  wlieat.  Other- 
wise, many  more  millinj;-  jdants  will  be  obliged  to  suspend  operation  and 
tinaucial  losses  will  continue  to  nuiltiply. 


■  -J    ■  ■ 

I 


Bernhard  iStcrn  d;  tSon,  MilicavJcei',  Wis. 

There  should  not  be  any  doubt  at  all  by  anybody  conversant  with 
our  state  of  industry  at  the  present  time  that  we  nuist  insist  on  foreign 
countries  treating  us  on  a  more  eipiitable  and  just  basis.  While  it  is 
certaiidy  of  gn^at  moment  to  Jiiake  elforts  to  increase  our  exports  to 
{South  American  sections,  yet  this  country's  attention  must  be  directed 
more  to  western  Europe,  with  its  nnu-e  dense,  intelligent,  and  indus- 
trial poi>ulation,  in  a  temi)erate  climate,  where  the  consumi)tion  of  all 
necessaries  of  life  is  by  far  larger  per  capita  than  South  American 
countries,  with  their  hotclinuiteand  principally  uncivilized  population, 
whose  wants  are  of  the  most  simi)le  character. 

Europe  maintains  now  industrially  a  hostile  position  toward  our 
country.  They  are  not  inodncing  enough  food  to  get  along  without  us, 
and  purchase  our  raw  material,  but  favor  the  Hour  manufacturers  of 
their  own  countiy  by  much  higher  tariffs  on  Hour  than  on  wheat,  thus 
shuttitig  out  our  manufactured  article.  The  inost  unjust  treatment  is 
exercised  through  legisla^^ion  by  France,  which  taxes,  in  favor  of  the 
flour  industry,  their  own  peojde,  through  a  very  high  tax  on  tlour  and 
a  by  far  smaller  tax  on  wlieat;  and  not  only  this,  France,  to  en(;oiirage 
their  Hour  manufacturers  still  more,  gives  a  rebate  on  tlour  exported 
and  nuule  from  foreign  wheats,  Avhich  gives  the  French  millers  a  decided 
advantage  over  the  nullers  of  the  United  States  and  takes  away  a  great 
deal  of  our  trade  with  (heat  Britain,  Uelgium,  and  the  Netherlands, 
which  we  controlled  heretofore  almost  exclusively  as  far  as  th(>,  importa- 
tion of  tlour  is  concerned.  In  this  way  France  is  building  up  their  own 
mills  and  j)ulling  down  ours.  VVe  should  think  that  we  are  strong 
enough  to  demand  from  Eurt)pean  countries  moreecpiitable  international 
treatment. 

Our  country  is  undergoing  a  change  in  its  character.  Having  been 
foiinerly  principally  an  agricultural  nation,  it  is  now  tending  to  a  large 
extent  to  become  an  industrial  nation,  and  with  this  change  the  duty 
of  our  Government  is  to  protect  our  large  laboring  classes.     We  are 


RECIPKOCITY    STATEMENTS. 


341 


iiiiporfiiij;  largo  amoniits  from  Enropo,  of  wliicli  tlie  larger  part  is  labor 
value,  while  \v«;  are  ex})ortiii{;iii  exchiiiige  to  the  same  countries  mostly 
raw  materials  with  very  little  labox',  and  it  is  evident  if  we  do  not  insist 
on  European  goveinnient  regulation  of  our  commercial  exchanges  on  a 
labor-value  basis  that  our  country  must  linally  suller. 

Regarding  the  milling  industry  in  this  country  spe(;ifi('al1y,  we  ought 
to  exi)ort,  in  tlu^  shape  of  Hour,  almost  all  of  the  1(M),(K)(>,(I0()  bushels  of 
wheat  now  exported  as  raw  material.  We  have  more  than  the  neces- 
sary ('ai)a<'ity,  and  are  able  on  account  of  our  ingenious  machinery  and 
methods  of  doing  our  business,  to  compete  with  any  other  nation,  not- 
withstanding that  the  rate  of  freight  on  wheat  from  this  country  to 
I'jUi'ope  is  alwa.N  s  less  than  on  Hour,  but  the  millers  can  overcome  this 
disadvantage  if  they  are  not  obstructed  by  the  greater  one  of  prohib- 
itive legislation. 

We  wish  res])ectfully  to  extend  to  your  honor  a  most  urgent  apjieal 
tc  give  your  valuable  support  to  the  ])assage  of  the  above  mentioned 
bill,  which  we  think  covers  all  the  necessary  retiuirements,  and  by  no 
means  to  allow  this  [)resent  session  of  Congress  to  adjourn  before  relief 
is  provided  for  our  exporting  manufactories. 


le  it  is 

)orts  to 

lirected 

indus- 

of  all 

erican 

lation, 

d  our 

u)ut  us, 

uers  of 

it,  thus 

ment  is 

of  the 

ur  and 

I)  1 1  rage 

ported 

ecided 

a  great 

rlands, 

nporta- 

eir  own 

strong 

atioual 


been 
large 
u>,  duty 
We  are 


a 


Daifiy  Roller  Mill  Company^  Superior,  Wis. 

We  appeal  to  you  for  early  action,  at  this  session  of  Congress,  for  the 
relief  of  the  milling  and  other  manufacturing  interests  of  the  country 
by  ])assage  of  bill  11.  II.  .'Ji'lL*,  or  a  measure  of  like  character.  The  res- 
toration of  reciprocity  treaties  between  this  and  foreign  countries  is  not 
a  question  of  i)olitics.  The  advantages  that  were  secured  by  the  act 
of  18!)()  are  unquestioned,  and  are  attested  by  statistics.  The  loss  of 
these  benelits  by  its  re])eal  is  likewise  plainly  demonstrated  by  refer- 
ence to  the  (iovernment  re])orts  of  exi)orts  since  the  tariff  enactment 
of  1894.  We  need  immediate  action  on  this  matter,  and  if  we  are 
obliged  to  Avait  two  years  longer  before  wo  can  attem])t  to  regain  the 
exiK)rt  trade  that  we  have  lost  many  milling  plants  will  have  to  sus- 
pend 0])eration. 

We  trust  that  you  will  give  this  matter  your  veiy  sericms  considera- 
tion, as  it  is  of  vital  importance  to  the  manufacture  of  flour  in  this 
country. 


Sparlcf!  MiUing  Company,  Alton,  Til. 

We  appeal  to  you  in  behalf  of  ourselves  and  iiumlreds  of  millers 
vitally  interested  in  recii)rocity  measures  with  Spanish-American  coun- 
tiies.  The  Hour  nulling  l)usilu^ss  in  the  United  States  to-day  is  demor- 
alized, and  in  a  cri])pled  condition.  The  overproduction  is  alarming, 
and  conq)etition  in  (Jreat  Hritain,  Belgium,  and  Holland,  0"r  j>riucipal 
export  markets,  is  getting  more  severe  all  the  time.  We  lu^ed  a  broader 
market.  We  must  have  it  or  nniny  honest,  old,  and  well-established, 
firms  will  fail.  The  McKinlcy  tariff  helped  us  on  account  of  the  reci- 
])ro(Mty  clause  attached  to  it.  During  tlu^  two  years  it  contiiuied  our 
mill  alone  sold  a  quarter  of  a  million  dollars  worth  of  Hour  to  Cuba. 
It  was  our  best  trade  because  it  was  the  most  profitable,  ajid  it  was 
growing.  M  illers  were  stimulated  to  enlarge  their  capacities  on  account 
of  this  increased  business.     The  blow  that  destroyed  it  has  struck  us 


342 


RECIPROCITY    STATEMENTS. 


liiird.  We  ni)i)0!il  to  yon  as  bciiif:^  tlio  loudiiiy' poworin  the  House  of 
Kcptcsi'iitiifivcs,  ami  hope,  so  far  as  it  lies  witiiiii  your  power,  you  will 
fsivoi'  lej-islatiou  jookiiij;'  toward  recii>rocity  treaties  witli  Si)aiiish- 
Auiericau  countries. 

We  sell  also,  in  a  small  way,  in  Nicaragua,  Venezuela,  Honduras,  and 
(>>sta  ilica,  but  the  trade  can  never  be  large,  for  the  reason  that  their 
duties  are  fearlully  high  and  collections  dillicult  to  uiake.  With  lower 
duties  on  Hour  in  those  countries  our  trade  would  be  iuereased.  Busi- 
ness makesbanks,  and  we  could,  in  tinie^  transact  a  sale  business,  as  we 
did  in  Cuba.  The  value  of  nianufactuied  Hour  in  the  United  IStates 
exceeds  that  of  any  other  uiannfac-tuiing  industry,  not  excei)ting  steel 
or  iron.  Unlike  most  industries,  it  isn()t(H)nibined  in  large  corporations 
or  trusts.  This  is  an  element  of  weakness  with  us  and  not  one  of 
stiiMigth.  However,  when  it  conu's  to  voting,  we  vote  strong,  and  we 
generally  vote  ilu!  right  way.  We  believe  that  four-lifths  of  tlie  millers 
in  the  United  Stat<vs  are  Republicans  straight,  but  we  do  not  wish  to 
talk  politi(!s  in  this  letter.  We  ai)peal  to  you  i'i  behalf  of  the  strug- 
gling millers,  every  »)ne  of  Avhom  would  be  beneiited  by  reciprocity  trea- 
ties favorable  towaid  the  e\i)ortiiig  of  our  Hour. 

It  is  true  that  the  big  millers  do  the  big  i)art  of  the  business,  but  it 
takes  thai  much  away  from  the  country  aiul  gives  the  sjualUist  miller  a 
better  home  market.  We  do  not  give  you  a  lot  of  statistics.  These 
have  been  co]le(!ted  and  i)la(!ed  before  the  projier  olhcials  in  the  House. 
We  do,  however,  solicit  your  interest  in  our  behalf  and  thank  you  in 
advance,  most  cordially,  ibr  whatever  you  nmy  do  to  assist  us  in  our 
great  struggle  for  the  imi)rovement  of  our  condition. 


The  Fri/hvrfi  Rolhr  Mills,  Fryhnrg,  Pa. 

The  flour  manufacturing  industry  of  this  country  (which  is  its  great- 
est and  m(»st  important  industry),  owing  to  conditions  favoral)le  to 
growth  and  progi'ess,  and  relying  upon  an  outlet  for  its  product  through 
exjwrt  trade,  has  attained  a  ]>roducing  caj)acity  far  in  excess  of  the 
demand  for  domestic  consumption.  European  Governments  protect 
and  foster  the  interests  of  their  Hour  manufacturers,  deeming  their  suc- 
cess of  national  impoitauce.  American  millers  must  receive  like  assist- 
ance from  this  (lovernmentor  they  can  not  live  and  prosper.  The  repeal 
of  the  act  of  181H)  by  the  tariff  of  181)4  proved  a  serious  setback  to  this 
trade,  as  is  dearly  deuuinstrated  by  statistics.  If  immediate  legisla- 
tion is  not  had  to  restore  the  conditions  enabling  us  to  recover  our  ti-ade 
in  these  foieign  (countries,  it  will  be  i)ermanently  lost.  Therefore  1  i)ray 
you  to  use  your  intluence,  urging  the  lu'cessity  of  early  action,  at  this 
session  of  ( 'ongi-ess.  for  the  relief  of  the  milling  and  other  nuinufactuiing 
intei'ests  of  the  country  by  passage  of  the  bill  H.  11.  3212,  or  a  measure 
of  like  character. 


Lexington  Roller  Mills  Company,  Lexington,  Ky, 

We  are  interested  in  the  bill  known  as  O.  11.  3212,  its  object  being 
the  leenactment  of  the  reciprocity  laws  for  various  articles,  and  we  are 
es])ecially  anxious  that  it  should  be  ])assed  so  as  toajiply  to  Hour.  We 
ttre  in  the  milling  business  and  have  felt  the  effects  of  the  trade  being 


RECIPROCITY    STATEMENTS. 


343 


)lc  to 

•ouji'h 

.1"  the 

'otect 

isuc- 

assist- 

rei)i'al 

to  this 

lo'ishi- 

ti'iide 

t  this 
tniiiig 
iasure 


l)oing 
ivc  are 
We 
Iboiiij? 


cut  oft'  from  the  mills  wliowere  doing  the  business  with  foreign  countries 
wliihi  the  hivv  was  in  force.  We  do  some  export  business,  but  so  far  it 
has  been  confined  (o  (ireat  IJritain  and  In'land,  and  did  not('omedire»'tly 
in  contact  with  the  conn  hies  where  tiie  reciprocity  chiusc  ap|)lie(i. 
However,  since  its  aboiiti(»n  (juite  a  number  of  the  nulls  who  weie 
interested  in  tliat  business  have  given  more  attention  to  the  local  or 
American  trade,  and  we  have  felt  the  effect  of  this  competition  in  the 
sales  we  have  made  in  the  Southern  territoj-y. 

We  belii^ve  a  reenactinent  of  tiie  reeiitrocily  tariff  would  enal)le  the 
nulls  to  g«'t  mori^  tlour  out  of  the  country  and  in  this  way  help  the 
entire  milling  business,  both  largo  and  small  mills  in  like  proportion. 


KaulTman  Milliiu/  Company,  St.  Louis,  Mo, 

2.  Manufacturing  Hour. 

3.  $l:0(),(IO(). 

4.  About  !i!L',()(K),(H)(). 

5.  Direct  to  foreign  dealers. 

6.  Yes.  By  personally  visiting  the  foreign  trade.  Met  with  success 
only  in  the  United  Kingdom.  Other  countries  (excepting  Holland  and 
Norway)  luive  higher  duties  on  Hour  than  on  wheat,  whicdi  prohibits 
favorable  arrangements. 

7.  Yes.  Spain,  France,  and  (iermaiiy  have  higher  duties  on  Hour 
than  on  wheat,  ^.'o  remedy  unless  by  reciprocal  treaties  or  retaliatory 
legislation. 

8.  Xone,  except  in  IJelgium,  which  country  has  followed  in  the  foot- 
steps of  France  and  (lernmny. 

9.  Dillicidt  to  answer.  In  18!)!,  wdien  France  temjxu'arily  reduced 
tlour  duties  to  a  parity  with  wheat,  we  sold  in  sixty  <lays,  during  the 
period  of  such  reduction,  8.')(K>,(K)0  wcu'th  of  (lour.  We  haA<'  made  no 
sales  i  1  that  country  since  the  (Ui^^ics  on  (lour  have  been  restoied. 

10.  Owing  to  crop  failure  in  this  section,  this  year  is  not  a  fair  crite- 
rion. Last  year  we  made  about  75  per  cent  of  our  outi)ut  of  six  years 
ago. 

11.  Wages  about  the  same;  cost  of  raw  nuiterial  about  one  third 
less;  transportation  10  to  L'O  ])ercent  cheaper 

12.  Far  less  satisfactory.     Profits  have  been  small  or  nil. 
l.''».  None  in  this  country. 

14.  None  where  import  duties  are  on  a  ])arity  (on  wheat  and  flour), 
except  freight  is  cheaper  on  wheat  than  tlour,  and  foreign  labor  i)ai(l 
lower  wages. 

lo.  Our  quality  is  equal  or  superior.     Our  prices  are  a  shade  higher. 

10.  Have  no  reliable  figures  at  hand. 

17.  Have  no  reliable  data,  but  estimate  70  per  cent  domestic  and  M) 
per  cent  for  export. 

18.  Favorable.  First  month  alter  said  duties  went  into  effect  we  sold 
in  Cuba  and  Puerto  Itico  $80,000  worth  of  our  product.  After  that  date 
sales  averaged  about  $20,000  per  month  during  the  time  treaty  was  in 
force.  Previous  to  the  treaty  sales  averaged  $3,000  to  $4,000  per 
month,  and  since  the  repeal  sales  averaged  $2,(M)0  to  $.'5,000  i)er  month. 

10.  Have  no  accurate  knowledge,  except  that  agricultural  j)r()(lu(;ts 
have  declined  in  value  during  the  i)eriod  supervening  since  repeal  of 
reciprocity. 

20.  Yes  J  most  emi)liatically. 


344 


RECIPROCITY    STATEMENTS. 


lliive  endoavorort  to  answer  (luostioiis  inoixmiidiM]  as  cloai'ly  as  pnssi- 
l)lo,nsiii}?  our  own  htisiiH^ssasa  basis.  \\"\\\  state  tli;it  we  are  ^really  in 
i'avor  of  reciin'ocal  treaties,  not  with  Sj)anisli  American  countries  nlono, 
but  with  tiiose  Kuroi)ean  (H)untries  whi(!h,  at  tlie  picsent  time,  i>hi(!o 
discriminiitinj?  duties  on  lloui'  as  com[)ared  with  wheat,  so  tliat,  while 
tbey  imijort  our  raw  uiaterial,  they  exclude  our  mauulactured  article. 


1i-| 


TIic  Northtcestcrn  Elcrnior  ivnd  Mill  Company,  Toledo,  Ohio. 

2.  Manufacturers  of  flour  and  I'eed  from  winter  wheat. 

3.  Capital,  $;{r)0,0()0.  Number  of  men  employed,  80.  Value  of 
product  in  18U5,  $l»8(;,3m). 

4.  Both  at  home  and  abroad. 

5.  We  sell  direct  to  our  own  correspondents,  on  through  bills  of 
lading. 

(j.  Yes;  by  personal  visitation  in  the  United  Kingdom,  France,  and 
Holland;  also  by  corresj)ondence  in  Belgiuju,  Germany,  Norway,  Swe- 
den, and  Cuba. 

We  have  conducted  a  regular  trade  in  the  United  Kingdom  since 
3891,  and  have  a  regular  trade  in  that  (|uarter  now,  excei)t  that  it  has 
been  restricted  this  past  year  on  account  of  the  relatively  high  price  of 
winter  wheat,  due  to  crop  faihu-e  in  America;  and  especially  in  the 
south  of  England  I'as  the  restriction  of  our  trade  been  intensified  on 
account  of  a  bounty  arrangement  which  the  French  millers  have  enjoyed 
from  the  French  Cxovernment,  for  about  a  year,  by  whi(;h  they  liave 
been  able  to  undersell  us  enough  in  the  south  of  England  to  embarrass 
us  in  the  matter  of  comi)etition. 

In  1891  we  sold  some  flour  in  France,  but  prompt  action  early  in  1892 
by  the  French  Ciovernmeut  for  the  benefit  of  the  French  millers  barred 
us  out,  and  we  have  not  been  able  to  sell  any  flour  in  France  since.  lu 
189;{,  1894,  and  part  of  189")  we  had  a  growing  trade  in  Belgium,  but 
action  taken  by  the  Belgian  Government  last  year,  by  which  a  duty 
was  imposed  upon  foreign  flour,  while  foreign  wlieat  was  admitted  free, 
put  a  com])lete  stop  to  our  trade  in  that  <|uarter. 

Although  flour  is  admitted  into  Holland  free  of  duty,  we  have  had  no 
trade  in  that  country  since  early  last  year.  Tnis  has  been  due  partly 
to  the  high  price  of  winter  wheat  as  compared  with  spring  wheat  and 
partly  to  the  influence  of  the  French  bounty  system,  Holland  (!on- 
sumes  the  cheaper  grades  of  flour  almost  entirely,  and  her  imports  the 
past  year  have  been  confined  entirely  to  cheap  spring  wheat  flours  from 
the  Northwest  and  cheap  French  flours  from  France. 

The  French  bounty  system  would  work  against  us  some  in  Belgium 
thisyear,even  if  there  were  nodiscrimiuating  duty  on  flour  into  IJelgium, 
but  not  enough  to  bar  us  out,  as  P>elgium  prefers  fairly  good  grades  of 
flour,  and  will  give  the  prelcience  to  American  red  winter  wheat  flour 
on  a(!count  of  its  superior  quality,  other  things  being  equal. 

We  have  sold  some  flour  in  Germany,  but  not  as  a  regular  thing,  as 
the  duty  on  flour  is  so  much  greater  than  the  duty  on  wheat  that  we 
can  not  compete  with  the  home  miller,  except  in  extreme  cases,  such  as 
temporary  abnormal  demand  due  to  domestic  shortage. 

7.  We  are  aware  of  obstacles  in  the  way  of  an  extension  of  trade  to 
all  countries  except  the  United  Kingdom  and  Holland.  In  the  United 
Kingdom  and  Holland  there  are  no  obstacles  imposed  by  the  govern- 
ments of  those  countries.    The  French  bounty  system,  however,  works 


RECIPROCITY    STATEMENTS, 


345 


,  as 

we 

kli  as 

le  to 

lited 

reni- 

>rka 


strongly  agfiinst  ns  in  holding'  triidc*  oven  in  those (fonntrios.  All  other 
countries  impose  a  reliitively  liijiher  inii)oit  duty  on  Hour  than  on  wheat, 
and  to  that  extent  we  are  barred  out  from  doiiij;  business  in  all  foreign 
countries  excei)t  the  United  Kiu<;(h)ui  and  Holland. 

Tlie  oidy  suggestion  we  can  nuike  is  to  encourage  recipiocal  trade 
relations.  This  suggestion  does  not  iniply  that  we  are  in  favor  of  any 
measure  involving  I'otaliation.  We  are  in  favor  of  enipowering  our 
Administration  to  etfeet  reciprocal  treaties,  but  are  not  in  favor  of 
empowering  our  Administration  to  inaugurate  and  put  in  force  any 
retaliatory  measure.  In  other  words,  we  bclicNc  cominercial  conciuest 
is  desirable  when  it  can  be  carried  on  by  friei.<lly  dii)loma('y,  but  we 
believe  commercial  warfare  betwocu  nations,  involving  ai'bitrary  retal- 
iatory measures,  would  be  worse  for  the  business  community  tiian  pow- 
der and  ball  warfare. 

The  introduction  and  adaptation  of  the  reciprocity  i<loa  should  be 
conservative  and  sure, ami eifectcd  laigoly  along diitlomatic  lines.  You 
can  not  adopt  and  introduce  reciprocity  one  year  and  then  revoke  it 
the  next.  Jn  that  event  business  would  be  unsettled  and  no  one  in  tlie 
trade  could  tell  what  to  expect  from  one  year  to  another. 

8.  Belgium,  France,  (iermany,  Norway,  and  Sweden  have  all  manipu- 
lated their  import  duties  on  tlour  and  wheal  duiiiig  the  past  live  years 
in  such  a  way  as  to  practically  prohibit  us  from  selling  any  Hour  within 
their  borders. 

The  repeal  of  the  reciprocity  clause  of  the  so-called  McKinley  tarilf 
act  greatly  restricted  the  ability  of  every  American  to  sell  Hour  in  the 
West  Indies  and  Brazil.  It  was  fortunate  for  the  Hour  millers  of  Amer- 
ica that  this  law  was  in  force  for  so  short  a  time  in  view  of  its  repeal. 

If  the  milling  business  of  the  United  tStates  had  be(;ome  well  estab- 
lished on  the  basis  of  the  reciprocity  act  and  it  had  then  been  repealed 
it  would  have  resulted  in  a  panic  an<l  bankruptcy  among  American 
millers  that  would  have  taken  them  many  years  to  recover  from. 

9.  Many  contingencies  are  involved  in  No.  !>,  such  as  the  scarcity 
or  abundance  of  the  raw  material  from  year  to  year  in  our  own  country, 
or  the  scarcity  or  abundance  of  the  same  from  year  to  year  in  the 
country  in  which  we  were  seeking  trade.  Other  contingencies  might 
be  cited.  We  can  say  with  positiveness,  however,  that  with  the  import 
duty  the  same  on  both  wheat  and  tlour  into  any  foreign  country  we 
could  build  up  and  hold  from  year  to  year  sullicient  trade  in  such  a 
c(mntry  to  do  what  we  would  call  a  regular  and  established  business 
in  that  country;  some  years  more  and  some  years  less,  the  same  being 
dependent  on  the  natural  contingencies. 

10.  In  1895,  235,103  barrels  of  tlour;  1S8<J,  235,;?70  barrels  of  Hour. 

11.  Ex])enses,  1895  and  1889,  on  almost  an  identical  jiroduction,  as 
follows:  1895,  $72,380;  1889,  $09,522.  The  above  does  not  include  cost 
of  raw  material,  which  figures  we  have  not  at  hand. 

13.  Partly  answered  in  No.  G.  In  addition,  will  say  we  meet  with 
competition  of  t.ie  home  millers  of  the  countries  to  which  we  export, 
also  from  Austro-IIungary.  Our  princii)al  compt^tition,  however,  in  the 
United  Kingdom  is  from  our  own  neighbor  millers  in  America. 

14.  At  present  the  French  millers  enjoy  the  benefit  of  an  export 
bounty  cited  above;  also  the  home  manufacturer  has  the  advantage  over 
us  by  so  much  as  the  ditterence  between  the  duty  on  the  raw  material 
and  the  duty  ou  the  manufactured  article. 

There  is  a  ])lan  being  develoi)ed  in  Russia  whereby  the  aid  of  the 
Russian  Government  is  to  be  secured  for  the  translnrnialion  of  the  Rus- 
sian export  ti  ade  in  wheat  from  the  raw  material  to  that  of  the  mauu- 


31fi 


uEciPifocrrv  statements. 


riu'luicd  arficlo.  Kvoryyeiir  lliis  sclu'ino  is  draAviiifi  iiciiror  and  noaror 
to  tlic  |)()iiil  (»r  i)riic(i(al  issiic,  and  in  a  voi'.v  sliort  tinK^  tin'  millers  of 
Mcstt'in  lOnropr  ami  <Im>-  Anu'rican  export  millers  will  have  (oeneonnter 
a  (lompetition  Cnim  that  source  which  will  (ax  them  to  their  utmost  to 
meet. 

ir».  \\v  can  comiiete  in  (juality:  {(t)  Uecaust^  Anioricra's  systcMii  of 
raisiui;'  and  ji'atherinj;'  ;irain  is  the  b»^st  ill  the  world,  thus  ji'ivinj;'  us  the 
best  law  material  in  the  world;  {h)  because  our  skill  in  maiiii»ulatin;;' 
the  raw  material  is  thci  best  in  the  world;  (r)  because  our  machineiy  is 
the  best  and  most  economical  in  the  world — due  to  Yankee  in^^ciiuity. 
Much  ol'tiu',  luMielit  derived  from  the  above  advanta,i>es  are  i>ai<l  out  in 
relatively  higher  waives,  and  if  they  w«'re  not  we  (!ould  not  with  thes«', 
a(lvaidafj;es  overcome  the  relatively  higher  duty  now  imposed  upon  the 
manufactured  aiticle  by  nearly  all  foiei.nn  countries. 

1(1.  The  cai)a<'ity  to  produce  has  iiuaeased,  not  from  any  marked 
iiK'reased  demand  for  llour,  but  because  of  a  larjje  increase  in  tlu',  mill- 
inj;'  cai)acity  at  the  head  of  Lake  Superior,  due  very  lar.yely  to  specula- 
tive causes.  This  has  all  oc(!urred  <lurinj^  the  past  six  or  s(;ven  years. 
The  ellect  of  this  si)eculati\ c.  development  at  the  head  of  I^ak*',  Superior 
is  inoie  than  vcjnesented  by  the  milliiij.1,'  capa(;ity  at  that  i»oint,  because 
the  building"  of  these  mills,  lar^e  in  themselves,  forced  other  millers  in 
otiu'r  localities  to  increase  their  daily  ca[)acity  whereby  they  misht 
reduces  the  manufactiirin}^' cost  i)cr  barrel  in  order  to  compete  with  them. 

The  result  has  been  an  overcai)acity  to  inoduce  and  a  constant  over- 
supply  upon  the  market,  while  on  the  other  hand  (here  has  been  a 
constant  tendency  to  restrict  the  market,  the  only  exception  being  the 
rccipro(;ity  act  of  1S!M),  which  Avas  of  short  duration, 

IT.  The  piesent  millinj;'  ca})acity  of  the  I'liited  States  is  snflicient  to 
work  up  all  the  wheat  now  raised  in  the  United  States  and  more,  too. 
I'iVery  bushel  of  Uiv,  wheat  that  is  now  ex])orted  tVom  this  country  as 
raw  material  could  be  manufactured  into  llour  at  home  and  exported, 
if  th(^  way  was  open  for  the  American  ndllor  to  phuje  it  in  (breigu 
markets. 

IS.  The  edeet  of  the  treaties  was  favorable  Jiiul  for  a  time  seemed  to 
solve  the  problem  as  to  what  would  be  done  with  the,  increased  in'o- 
diu'tion  of  ll<»M-,  due  to  the  s])eculative  boom  in  iiiiil  l)uildiiig  at  the 
hea<l  of  l.ak(  ^ui>crioi'.  The  (^Hecb  of  their  repeal  was  exceedingly 
prostrating;- to  the  llour  trade  of  (he  entire  country;  while  it  <lid  not 
directly  allect  all  mills,  yet  indirecdy  it  affected  every  mill  in  the  dnited 
States  by  caMsiny'  a  ruinous  (jompetition  at  home,  where  tlu^  otferings 
could  not  be  absorbed,  even  at  a  loss  to  the  miller. 

!'(►.  Yes,  along-  lines  suggeste<l  in  (mr  remarks  under  No.  7. 


21ic  Shelbii  Mill  Compmnj,  Shelby,  Itichland  Couiiti/,  Ohio. 

2.  Flour  from  winter  wheat. 

3.  Capital,  ><ir)(),(»UO.  Number  of  persons  employed,  aO.  Average 
value  of  annual  i)roduct,  )t5'"»0(),0(>(». 

I.  Our  market  is  both  in  the  United  States  and  abroad,  tlu^  home 
market  being  70  i)er  cent  of  our  juoduct,  and  the  foreign  market  oO  per 
cent. 

5.  We  sell  direct  to  foreign  dealers. 

(>.  We  have  made  diiect  etlbrts  in  the  i)ast  three  years  to  extend  our 
foreign  trade  by  sending  salesmen  into  foreign  countries  with  samples 


oreigii 


■iiumI  to 
pro- 
lib  the 
iiii>ly 
id  not. 
iiiitcd 
loriuys 


home 
,')(» per 


lul  oar 
imples 


IJECII'UOCITV    STATEMENTS. 


347 


and  iuillinrity  to  sell.  Wr  met  with  succ(».ssin  I'limhind,  Scotland.  :iiid 
Irchind.  We  snccecded  in  estal>lisliin<;- soiiir  1  lach' in  Ueljiiiiin,  but  the 
duty  iceently  imposed  by  the,  l>el;;iaii  (lovernment  on  th)ni'  ha.s  eansed 
lis  to  h)se  th(!  trade  ill  tliat  eountry.  We  met  with  nosiic<!e.ssin  l'''iaiiee, 
(Jermany,  iS'oiway,  ami  Sweden. 

7.  The  reason  we  were  unabhi  to  phice  our  product  in  the  i-onntries 
named  in  wliieh  wo  wenmot  sneeesst'nl  in  extending' our  trade,  was  that 
said  countiies  imposed  discriiiiiiiatin^' duties  ai^aiiist  Ihtiir,  in  tinit  the 
rat(>  of  duty  ehai'}i;ed  on  Mour  is  inneli  in  «ix(U'8s  of  tiie  i-ate  ciiai^jcd  on 
wlieat.  As  a  nieaii.s  ol"  brin^iii};"  about  tlie-  removal  of  sneii  diseiimi- 
natin^'  duties,  we.  woiihl  reconimeiid  (he  enaetnieiit  into  hi  )lliie  Kerr 
bill  (II.  i;.. "52111),  or  ameasuie  similar.  Tliediseriminatioii  luactieed  by 
foreijuii  countiies  must  b(^  m<'t  by  such  measures  as  will  enforce  their 
lemoval.  A  lixed  ])olicy  on  tlie  part  <»f  this  ( l(>v«'riini<'iit.  aiit;ijnonisli<', 
to  <liscrimiiiation  in  any  form  must  necessarily  meet  with  ultimati^ 
ajiproval  by  themaiiufiictnreis  in  foreign  countries  who  seek  the  I'ni^ed 
States  as  the  best  foreiyu  outlet  for  tlu!ir])rodiict.  A  policy  such  as  we 
snji'^est,  that  would  cause  the.  lemoval  of  tln^  discriminating-  duties  on 
tloiir,  would  tend  to  lowtM  the  price  of  hreadstiilfs  in  those,  eoniitries 
to  which  we  would  extend  our  trade,  lience,  it  would  meet  with 
approval  at  the  hands  of  consumers  there,  and  would  in  turn  be  sup- 
])orted  by  the  niaiiufacturiii,ii  ehMiieiit  abroad  (aside  from  millers),  wlui 
would  be  seeking;'  to  extend  llieir  sales  in  the  I'nited  States  in  return  for 
the  extension  (tflered  Amei'ican  millers  in  the  sale  of  American  Hour. 

S.  On  the  1st  of  January,  IS!)."),  Iiia/.il  plac<'d  a<luty  on  flour  of  from 
40  cents  to  50  cents  per  barrel.  The  fallinj;'  otViii  exports  of  Anieiican 
Hour  to  that  conntry  in  IS!);")  was  200,000  barrc^ls,  in  ronrd  numbers. 
About  a  year  aj;'o  lieliiium  imposed  a  duty  of  ."iS  cents  jter  barrel,  and 
the  result  has  be(Mi  that  in  the  i)ast  six  months  the  shi[)ments  of  Amer- 
ican Hour  to  Ueljiium  Inive  been  but  abont  12,(»00  barrels,  whereas 
belbre  the  imi)osition  of  tln^  duty,  and  durin.n'  the  years  18!(2.  1S!).">,  and 
1S!H,  the  exports  of  Ameri(*aii  Hour  to  IJelj^ium  have  averaj^ed  L'00,000 
barrels  annually.  Theclian,yes  in  Cuba  and  the  Latin-American  coun- 
tries in  their  taritfs  since  tlu^  abrojuation  of  reeii>rocity  treaties  have 
brouj^ht  about  a  loss  known  to  exceed  1,000,000  barrels  annually,  and 
estimated  as  lii^li  as  2,000,000  barrels  of  thmr  annually.  Thi^  i)olicy  of 
I'^j-ance  (adopted  Avithin  the  past  few  years)  of  ])ayiii<;'  a  bounty  on  '.lie 
exi)ort  of  French  Hour,  is  enabliitf;'  French  millers  to  make  si^iious 
inroads  on  the  trade  in  (Ireat  ]>ritain,  formerly  sui)])lied  by  Anu'rican 
mills.  The  amount  of  French  tlour  sold  in  (Jreat  Britiiin  in  the  past 
twelve  months  was  2,;)00,000  barrels.  Previons  to  the  ad(»i)tion  of  the 
present  Fieiich  ])olicy  in  this  lesjiect,  the  market  in  (ireat  P)ritaiu  for 
French  Hour  was  practically  nothiii*;,  as. Vmericaii  Hour  Mas  used  instead, 
being  cheaper.  The  sales  of  j\iiieri(!an  Hour  in  I'^iance  in  1S!)2  were 
over  200,000  barrels,  broninht  about  by  a  tempoiary  suspension  of  the 
discrimination  against  Hour,  but  reimposed  at  tlu^  Kolii-itation  of  the 
Fr(Micli  National  IMillers' Association,  in  18!>;?  and  in  18!M  less  than 
2,000 barrels  per  annnm  of  American  Hour  were  maiketed  in  France, 
and  in  1895  American  sales  were  still  further  redu(;ed  to  1,102  barrels 
to  France. 

0.  The  removal  of  the  discrimination  ajjainst  Hour  would,  in  our 
opinion,  enable  the  mills  of  the  United  States  to  increase  their  annual 
output,  in  due  course  of  time,  to  nearly,  if  not  (luite,  100  per  cent  of 
their  ])resent  business.  Fhmr  vnn  be  mad*',  cheaper  in  thc!  United 
States  than  in  any  other  nation  in  the  world,  because  of  our  improved 
machinery  and  superior  methods  generally.    The  means  of  c(»mmunica 


!  ; 


^'!   \ 


■■^?r 


34S 


RECIPIKX ,'1T Y    STATEMENTS. 


,S ') 


tion  with  tlic  ])0])iil()iis  couTitiics.  of  Karoi)e  in  ])arti(uilar,  arc  so  excel- 
lent, and  tlie  rates  of  livij^lit  so  low,  that  our  lUfilitics  would  be  unsur- 
passed by  those  of  any  otlier  people.  1^'urtheruiore,  American  wheat  is 
acknowle<l,u('d  to  be  su])eiior  in  Ihmr making?  fpialities  to  the  Avlieat  of 
most  otiu'r  counlries.  It  is  ])racti(ally  at  our  mill  doors,  and  therein 
no  evi(i«'nt  reason  why,  with  the  leinoval  of  discriminating;'  duties,  the 
ir.ills  of  the  I'nited  States  should  not  ])ut  their  tlours  into  every  avail- 
able port  on  llu^  lilobe.  With  lln^  increased  demand  thus  stimulated  in 
the  extension  of  American  Hour  markets,  the  ])ro(lnct  of  Avheatin  this 
country  would  be  increased  and  tin',  aj>]icultural  sid  ition  improved  to 
that  exteid.  At  ])res<'nt,  the  deirian<l  lor  lloui'  beinj;"  limited  to  our 
domes!  ic,  markets  and  the  markets  of  (ireat  I>ritain,  we  lind  the  milliii!;" 
business  iinprolitable  and  n'<)re  jieneiaily  i)rostrated  than  any  other 
j>reat  manufacturin,i;'  industry  in  the  land. 

10,  The  outjjut  of  our  establishment  is  ])ractically  the  same  as  six 
years  ago,  whereas,  had  we  facilities  for  extending  our  trade  abroa<l, 
Ave  would  have  increased  it  very  materially. 

11.  Six  years  ago  wheat  was  woith  SO  cents  ]>er  bushel  at  our  mill. 
To  day  it  is  worth  (Jo  cents.  Wo  are  paying,  practically  the  same  wages 
to-<lay  as  six  years  ago,  but  are  woi'king  10  ])er  cent  less  men.  The 
enforced  e(!onoiny,  biought  about  by  thci  comi)etition  for  the  honu^  trade 
and  the  r<'stricted  markets  abroad,  has  resulted  in  a  reduction  in  cost 
of  Hour  full  a  cents  ])ei'  barrel  over  the  cost  of  six  years  ago.  Trans- 
l)ortation  rales  at  this  tinu»  (six  years  ago)  to  Liveri)ool  were  30  cents 
per  hundred.  To-day  the  rati;  is  20  (•cuts  per  hundred.  The  inlan<l 
rate  is  but  t  cents  less  ])(>r  hundred  than  six  years  ago.  Theie  is  less 
IVcight  moving  by  ocean  lines,  and  conse(|uently  the  c()mi)etiti(»n  foi' 
what  there  is  makes  I  he  ocean  rate  but  about  half  what  it  was  six  years 
ago.     Notwithstanding  the  low  rates,  we  are  unable  to  ship  largely. 

l:i.  The  sellinj;- ])ri(H' for  Hour  is  from  T")  cents  to  $1  per  barrel  less 
than  six  years  ago. 

i;'.,  II.  Answered  in  Nos.  7,  S.  and  0. 

15.  We  <!an  compete  with  I  lie  foreign  manufacturei's  of  Hour  in  qnal 
ity  and  excel  them,  but  the  ditference  in  (piality  is  more  than  nuide  up 
by  the  din»Mence  in  price,  and  in  this  the  foreign  manufa<tturers  have 
the  a(l\antage,  because  Iheyari;  aided  by  the  discrimination  against 
American  Hour  and  the  admission  of  Americaii  wheat  at  lower  duties 
than  on  Hour. 

1(5.  The  total  produ(!tof  Hour  in  the  United  States  has  not  materially 
changed  in  the  last  six  years. 

17.  The  total  ex])orts  of  lloui'  from  the  Tnited  States  in  1S<)4,  under 
the  McKinley  law,  were  l(i,Mr)!),r»;!;;  barrels.  The  total  exports  (tf  Hour 
for  IHOO  were  12,0SlJ,r»!>l  bariels,  showing  a  gain  in  exjtorts  under  the 
ieciprocit.\  treaties  of  1.77(5,011!.  As  near  as  can  be  ascertained,  the 
output  of  the  lloui'  mills  in  the  United  States  in  the  years  nanie(l  was 
r)r),(iOO,00(>  barrels  each  year.  The  domestic  trade  has  sull'eie<l  largely 
by  the  falling  olf  in  volume  (»f  consumption  since  1S<>;{.  This  is  our  own 
experii'Uce  as  millers,  and  is  verified  by  tin;  e\peri«'nc(^  of  many  others, 
to  our  certain  knowledge.  The  increase,  since  ISOO,  in  Ibreign  trade 
was  Just  so  much  aid  to  millers  in  maintaining  their  average  output. 
Ila<l  the  channels  for  foreign  tradci  remained  op«'n,  the  extension  of 
trade  abroad  would  have  gon«'  on,  and  a  certain  degree  of  ])rosi)erity 
in  milling  would  liaAc  been  maintained.  We  estinmte  the  natuial  sur- 
plus of  Houi'  for  export  (if  the  mills  of  the  United  States  wvav  produc- 
ing to  their  lull  capacity)  would,  in  the  couise  of  a  lew  years,  anmunt 
to  enough  to  conveit  into  Hour  the  entire  product  of  wheat  in  this 
country.     The  necessity  for  jiew  foreign  markets  is  made  apparent  by 


RECIPKOCITY    STATEMENTS. 


349 


■liiilly 

lunder 

lour 

M-  tlio 

(1,  tlie 

1(1  \v:is 

lujiely 

Irowii 

JMUTS, 

tijulc 
[itput. 
ion  ot* 
k'.rity 

1  sur- 
I'odiic- 

IlOlltlt 

this 

h^  by 


the  knowledge,  that  tlie  mills  of  the  eoniitr}'  are  not  in  o])eratioii  to 
exceed  cifjlit  months  annually  at  tlui  piesent  time.  We  believe  I'avor- 
able  le.uislatioM  and  reeijuocity  treaties -would  increase  the  agfi'iej^ate 
outi»ut  of  tlour  at  least  25,000, ()(>(>  barrels  annually.  It  is  not  out  of 
reason  to  say  that,  undcu-  favorable  conditions,  the  luanidacture  of  Hour 
in  the  United  States  could  bo  increased  Avithin  ten  years  by  50,000,000 
barrels,  all  of  which  would  lind  a  market  abroad,  and  the  ]uoduction 
of  wiieat  and  every  industry  connecte<l  with  the  millinj^'  business  would 
be  |)roportionat<^ly  stimulated.  These  lij>'ures  ar<'.  the  result  of  careful 
in\estij;ati(>n  by  I\l.  IF.  J)avis,  the  i)resident  ol"  this  comi)any,  and  were 
])laced  before  your  subcommittee  at  the  hear  in. i;' j;  ran  ted  Mr.  Davis  in 
behalf  of  the  Winter  Wheat  JMillers'  Leaj>iie,  on  February  L'5. 

IS.  The  fi'eneral  ell'ect  of  the  reci])rocity  ti-eaties,  made  in  ISOO,  was 
hiinhly  favorable  to  the  export  trade  in  Hour.  The  effect  of  their  repeal 
was  to  tear  down  ]»racticallyall  the  trade  that  had  been  b-.iii  p  under 
such  treaties. 

10.  The  effect  upon  farm  products,  particularly  wheat-  u.is  hu-  reach- 
ing-. The  price  of  wheat  fell  in  181).")  to  the  lowest  point  '-  •  'j  reached 
sinc(^  LS<iO,  and  is  to-day  05  cents  i)er  bushel,  as  coniitarecj  uith  SO  cents 
to  00  cents,  the  average  value  of  wheat  for  the  preceding  ten  years. 

In  further  answer  to  (pu^stions  JSos.  IS,  10,  and  20,  we  (pn)te  an  edi- 
torial on  the  northwestern  miller,  appearing  March  20,  and  in  which  we 
heartily  concur  and  thoroughly  indorse,  as  follows: 

The  eire(!t  of  tlio  rcciinocMty  arranjioiiu^iits  niferrod  to  wiis  favorable  in  tlio  lnj]fhost 
(Icgreo  to  the  foreijiii  coinnicrco  of  tbo  rnitcd  States,  and  cspocially  to  that  port  ion 
of  it  contributed  by  the,  niillors.  Kociprocity  met  \\ith  tlic  lioarty  ap])ro\  al  of  all 
millers,  irrcspoctivo  of  ])arty.  It  was  rt'};ardod  as  the  most,  intellijicnt  aid  to  onr 
f()ieij|;ii  trade  ever  };iven  it;  as  a  connnon-sonse,  bnsini'sslike  ])oli(^y,  liastMl  on  prin- 
cijdes  whicli  were  without  (juestion  sound,  loj^ical,  and  tlinron}j;lily  jjood.  I'ractii'al 
e\]ieri<'nce  under  it.s  provisions,  made  liy  ])ra(tical  business  men,  increased  the  favor- 
able, Hentiment  whicdi  its  inauj^iiration  awoke.  By  lis  nu-ans  our  export  trade  in 
llour  found  lu'w  holds  in  whicdi  to  exjiand  and  devcdop,  and  an  enterprising;'  ami 
ajij^ressive  s])irit  was  ;;ra(lually  extending;  our  expoits  into  euiintries  liitherto 
unUnown  to  us.  The  niillinjf  imlustry  had  Just  beyiin  to  ajjpreciate  and  ])rolit  by 
tJui  reciprocal  arranj;'ements,  when,  by  iin  utterly  useless  ami  seeinin<;ly  unreasonalde 
movt^  Conj^ross  compbitely  destroyed  them. 

'J'he  eltiMt  of  tlu^ir  repeal  was  extrenn^ly  bad.  It  was  a,  lilow  at  oiir  comnufrcc! — 
iinexiK'cted,  unnecessary,  and  most  ill  advise<l.  It  resulted  in  a  serious  loss  of  foreign 
trade,  with  no  appaient  .naiti  from  any  cjuarter. 

It  is  both  expedient  and  ;idvisable  to  apply  tho  reciprocity  principle  to  future  tarilV 
legislati(Ui.  'I'his  idea  nu-ets  with  the  a|tpro\al  of  milhits  ^cmirally,  witlmut  reftM-- 
«'nce  to  ])arty.  'I'hey  regard  it  as  a  coiunn)n-sense  and  businesslike  settlement  of  the 
tarilf  (luestion,  the  true  jirincipht  njion  whiili  oui'  I  I'adc  with  forciun  countries  shmihl 
bi<  comlni'ted.  .\  general  law  ant  li(U'i/.ing  the  I'rcsident  to  negotiate  recijtrocity 
treaties  with  foreign  nations,  as  far  as  possible  and  as  soon  as  |>ussible,  wonlil,  in 
our  opinion,  be  of  inunenst;  advantage  to  our  export  liade,  anil  of  \  ast  henelit  to  oni' 
country  generally. 

Much  can  lie  acconiplisluMl  liy  (li)domalic  negolialions  in  extemling  our  export 
tiade.  Countries  now  (dosecl  to  us  ('(uuph'tely  liy  prohibitory  tariiVs  ccuild  um|Ues- 
tifuuibly  be  opened  by  su(di  n(\not iations.  At  |>resent,  as  Car  iis  American  Ibnir  is 
concerned,  we  liav<i  pushed  our  trade,  industriously  and  with  entei'pris(>  ami  vigor, 
in  evtM'v  land  from  which  we  are  not  barrc<l  by  tarills  so  high  as  to  be  pi'actically 
jiicdiibitory.  Many  marki^ts  opened  to  us  liy  reciprocity  liaxc  bcconio  closed  by  its 
repeal.     These  might  bo  easily  recovered  by  iulelligent  negotiation. 


-1 


The  Coirffill  d-  Hill  MiUhiff  Vompanij,  ('arlhivjc,  Mo. 

As  we  have  never  given  espeeiiil  iittention  to  the  export  trade,  but 
hiive  done  it  thror.gh  ii  third  party,  we  could  not  iinswer  intelligently 
many  of  the  <piesti(Mis  asked.  We  will  say,  however,  that  we  c(»nsidcr 
recii>rocity  treaties,  properly  gtd ten  up,  as  simply  soiiml  business  sense 


m 


^ 


350 


RECIPROCITY    STATEMENTS. 


ill  i)oliti(',s,  or  p(Mli!ii)s  l)ott»>r  than  that,  in  statesniaiishi]).  And  how 
aiiymc.  with  ••odd  Imsii  ;s  juduinciit  can  for  a  inoniciit  withhokl  tiieir 
ai)proval  of  measures  tiiat  take  advantaj'e  of  an  iin|>ortin,n'  business  to 
further  the  exi>orts  of  botli  our  iiatuial  and  niaiuilaetured  products  is 
<lifficiilt  to  see.  In  our  own  line  of  business  the  sale  of  several  millions 
of  bands  of  Hour  was  lost  to  the  milliii,ii'  interests  of  the  country  by  the 
abroj;ation  ol'the  treaties.  There  can  b«^  no  doubt  of  our  ability,  if  need 
be,  to  Ibrce  commercially  an  ackuowle<l<iinent  of  the  benefits  received 
from  this  as  a  seiliuji'  market  by  j;rautiiiin'  us  privileges  in  return.  It 
is  U;  matter  of  business. 

The  Oowiiill  &  Hill  Millinp,-  Company,  of  Carthajie,  Mo.,  is  engaged 
in  (he  manufacturer  of  wheat  Hour,  with  ca](ital  of  $12(>,(H)(),  employing 
when  run  to  limit  of  capacity  la  hands.  JMuch  (lie  larger  part  of  our 
product  is  ]»hiced  in  thedomeslic,  markets;  that  which  goes  abroad  is 
place<l  for  tiie  most  i)art  tlirough  commission  dealers.  Aio  not  sulh 
ciently  familiar  with  the  action  of  foreign  countries  iii)on  tlu'-  matt(;r  of 
Hour  imports  to  comment  ujiou  them,  but  do  know  that  our  sales  abroad 
for  the  i)ast  three  years  have  not  been  one-fourth  of  what  they  were 
during — say  the  ])recediug  three  years,  for  the  reason  that  most  of  the 
Vuwv  we  could  not  get  (tost  for  our  flour. 

Our  ]>resent  output  is  about  one-half  that  of  six  years  Jigo.  Cost  of 
l)roduction  ])racti(;ally  the  same,  ashle  from  the  cost  of  wheat,  which  is 
materially  less,     Labor  the  siune. 

We  consider  the  general  eliect  of  the  reciprocity  treaties  to  have 
been  very  favorable  to  the  export  business  of  the  ccmntry,  and  most 
lieartily  indorse  the  application  of  the  piincii>le  to  futui<'  tariff  legishi- 
tion,  though  we  think  the  treaties  that  might  be  inad<' would  be  far 
moYV  likely  to  be  based  u])on  sound  business  principles  if  they  couhl  bo 
formu]ate(|  by  a  <*ommission  of  busiiu'ss  experts  in  sympathy  with  the 
.((►Jecls  to  be  attained,  rather  than  by  parties  with  no  especial  training 
in  that  direction. 

We  think  that  the  immense  advantage  that  our  en<u'mous  im])orts  of 
articles  of  foreign  growth  and  manufa(!ture  that  can  not  be  prolitaidy 
produced  within  our  own  borders  should  be  fully  utilized  in  develoi)ing 
markets  for  our  own  products,  both  raw  and  numufactured. 


Kcltlor  lirotlicrs,  iSf.  Loui.s,  Mo. 

2.  Whciit  flouring  mills;  Iniving  one  mill  .'J, ()(>(>  barrels  capacity  and 
aiiotlu'r  of  l,(»0(l  barrels  capacity  e\ery  twenty-four  hours. 

.*{.  Over  .fl. (►(>(>,(>()(>.  10mploy"L»;5(l  toLMO  men.  Value  annual  pnuliict 
over  $r..<)()0,(K)(). 

4.  We  lind  our  market  at  home,  and  also  in  l'hiro[>e  and  Soutli 
America.  About  00  ])er  cent  is  exi>orted,  and  40  per  cent  is  nuirketed 
ill  this  country. 

o.   W(;  sell  direct  to  Ibreign  buyers. 

(5.  \Veliav(r  continually  made  ellbrts  to  extend  our  foreign  trade,  and 
of  late  yeiirs  ha\(' been  successful  in  the  United  States  of  Colombia, 
IJcpublic  »)f  Costa  Jiica,  Uritish  Honduras,  Venezuela,  and  llrazil.  Dur- 
ing the  period  when  th»^  duty  was  <S<S  cents  ])er  100  kilos  to  the  island 
of  Cubii  and  oilier  Spanish  dependencies,  we  sold  to  those  markcrts 
between  ir»0.(K)0  to  LM»0,(»00  barrels  aiinuiilly.  Since  the  duty  has  been 
ad\  anced  to  $  I  per  100  kilos,  our  s;iles  have  not  ln'iui  over  lir>,(KM>  barrtds 
per  annum,  and  since  the  war  restrictions  they  have  not  been  over  the 
Ittte  of  5,000  buirels  per  imnum. 


RECIPROCITY    STATEMENTS. 


351 


Mtuth 
keted 


k  and 

[iibiii, 

Dur- 

>l:ind 

I  been 

(r  the 


7.  Prior  to  the  disciimiiiiitiny  <liity  recently establislied  in  France  aa 
against  iloui-  and  in  favor  of  \vli«*at,  vv(^  shi[)ped  to  France  about  10(),(KK) 
100  kilo  sacks  of  ilonr  \)ov  annum.  Since  the  establishment  of  that  dis- 
criminatinsi,"  <luty,  ^ve  have  not  shipi)ed  a  sack,  but  have  lost  the  trade 
entirely.  We  liave  exi)erienced  a.  similar  result  in  our  trade  with 
Sweden,  IJelgium,  Switzerland,  and  Germany.  Our  shi))nu'nts  ti>  those 
countries  would  aj:,j^reyate  200,000  sacks  per  annum  i)ii()r  to  their  dis- 
criminating duties. 

You  ask,  can  we  suggest  any  means  by  which  the  obstacles  to  our 
trade  can  be  removed?  We  can  think  of  no  other  manner  than  a  r<H'ipro- 
cal  system  of  taiilTs  and  a  complete  shutting  out  from  this  country  of 
all  jn-oducts  of  those  countries  that  discriminate  against  our  nnmufac- 
tured  articles  and  in  favor  of  our  raw  material,  which  we  think  wonld 
result  in  a  continued  trade  in  oui-  manufactured  articles,  princi[)ally 
those  i»roduced  from  raw  material,  in  which  we  excel  otlua-  countries  in 
the])ro(luction  thereof.  This  would  give  more  money  and  bettei-  wages 
to  the  laboring  comnuinity  of  America  than  all  the  labor  associations 
that  are  in  existence  can  bring  forth,  and  probably  be  the  best  solution 
of  the  laboi"  problem  that  has  ever  been  accomplishe<l.  It  wonld  not 
hurt  the  farmer,  because  foreign  countries  do  m)t  come  here  for  food 
esjieciaily,  unless  they  are  fon-ed  to  from  necessity,  Avlien  they  would 
take  the  manulactured  article  as  (puck  as  the  ra  v  material,  Jt  would 
also  enable  our  own  peoi)le  to  buy  and  consume  much  more  liberally 
the  farmer's  ])rodu<;t  than  they  ai'o  able  to  do  now.  Again,  we  would 
sell  them  our  labor  in  the  shajx' of  manufactured  articles,  instead  of 
sending  them  gold  to  jiay  for  onr  importations. 

8.  AVe  have  already  mentioned  foreign  countries  who  have  lately 
imp(,.^ed  discrimiiuiting  duties  in  favor  of  onr  raw  material  as  against 
our  numufactured  articles.  AVe  have  had  enough  experience  in  this 
trade  to  feel  and  realize  that  unless  we  can  force  tliose  foreign  countries 
heretofore  mentioned  to  make  mor<>.  equitable  duties  in  regard  to  wheat 
and  flour,  ruin  comi)lete  and  unmistakable  is  bound  to  overtake  the 
largest  mamifacturing  interest  in  this  country,  ami  that  is  the  tlour- 
nuliing  interest,  as  fully  50  jx'r  (;ent,  in  our  opinion,  of  the  1h)ur  maun 
fai'turing  capacity  is  dei)endent  on  foreign  trade,  and  should  the  whole 
of  tin'-  mills  begin  to  comi)ete  and  depend  ui)on  the  home  trade,  or  what 
they  can  get  of  it,  ruin  to  the  interest  can  be  the  only  result. 

1).  We  believe  that  nondistninumition  duties  imposed  by  foieign 
countrii's  on  our  wheat  an<l  flour,  and  tln^  same  duti«'s  imposed  upon 
im])ort  from  the  United  States  by  those  foreign  countries  as  they 
impose  on  the  imports  from  other  countries,  would  result  in  the  exten- 
sion of  our  exi)ort  tiade  far  beyond  what  it  has  ever  been,  and  at  the 
aanu'  tinm  would  secure  to  the  millers  (d  the  l'nite<l  States  abnost  a 
monopoly  of  the-  Hour  imports  of  foieign  countries,  for  this  reason,  timt 
there  is  no  wheat-producing  foreign  country  whose  facilities  fb,"  nK»ving 
wheat  from  the  point  <d' production  to  tlio  point  of  manufaclure,  anil 
from  thence  to  the  seaboard,  are  (Mpnd  to  the  Fnited  Stiites;  and 
furtlu'r,  no  wheat-producing  country  in  the  world  has  developed  tlie 
nuinufacturing  of  wheat  eiiual  to  tin'  I'nited  States;  neii her  are  they 
i"!  any  shape  to  comi)ete  witli  our  mills  yet. 

10.  We  have  two  less  milling  (sstablishments  than  wo  bad  fenr  years 
ago.  One  large  mill  we  lost  by  firo,  which  we  have  not  ndniilt,  and 
to  day  W(^  could  not  sell  the  two  ])roi»erlies  we  ))resently  own  for  HO  |»er 
cent  of  their  cost  or  what  we  could  er<'ct  them  for.  \\'e  believe  tlmt, 
this  will  apply  to  abnost  any  null  in  the  United  States  that  im  notexrep- 
tiomilly  well  situal(ul,  and  for  the  past,  three  ,\ears  w«^  ha.e  not  run 
the  mills  over  GO  per  cent  of  the  tiaie  wo  have  run  thorn  six  years  ago. 


i 


352 


RECIPROCITY    STATEMENTS. 


11.  The  jui'seiit  cost  ol"  ])i()(luctioii  of  Hour' (•oin])!iro<l  with  six  years 
iif;()  is  only  about  0.")  per  (tent.  Wa^es  liavc  boon  reduced,  the  cost  of 
all  milling  sui)])lies,  re])airs,  and  machinery  have  been  reduced,  and  the 
the  cost  of  raw  juaterial  and  ti'ans])ortation  comi)ar<'d  \vith  six  years 
afi'o  is  fully  25  \n\v  cent  lower.  The  last  two  items,  as  far  as  cost  is  (con- 
cerned, are  dependent  ni)OU  the  competi tion  of  foreign  shipi)iny  countries 
and  the  crop  produced  in  this  country. 

li!.  I'resent  selling  prices  com[)ared  with  those  of  six  years  ag(»  are 
as  follows:  Six  years  ago  Ave  got  easily  from  10  to  15  ccMits  i)er  barrel 
over  and  ahov*'  the  <-ost  of  manufacture.  I'or  the  past  two  or  tlu'ce 
yciU's  we  have  not  got  over  50  per  cent  of  this  advance  on  cost  and  a 
great  i>oitiou  of  the  time  no  advance  on  cost. 

1.'!.  I'"'rench  millers  (;an  buy  our  wheat,  manufacture  it  into  Hour  in 
I'^rance,  and  compete  to  advantage  with  lis  in  all  ICuropean  marketf- 
that  Ave  can  ship  to.  This  is  on  account  of  their  system  of  import 
duties,  Avhich  results  in  a  bounty  or  e(piiA'alent  to  all  I'^reneh  millers 
who  exi>ort. 

li.  We  huAe  not  yet  come  to  any  knowh'dge  where  foreign  com- 
petitors either  in  the  cost  of  manufactnn'  or  tvansi)ortation  <;harges  to 
foreign  markets ha\(c  any  advantage  of  us. 

15.  We  believic  that  tlu^  millers  of  the  United  (States  can  compete 
advantageously  with  any  foreign  nuinnfacturer  in  ipudity  and  price 
under  the  same  circumstances.  We  im^an  by  Ibreign  manufacturers, 
i.iilleis  who  i\w  in  wheat  exporting  countries  and  who  manufactuer 
there,  but  Ave  do  not  mean  that  we  <:in  compete  with  millers  who  art^ 
manufacturing  in  countries  where  they  can  import  raw  nuiterial  at  a 
h'ss  ])ric(;  than  the  immufaclui'ed  article. 

10.  j\lanu!a<cture  of  ilour  hasdeci'eased  in  the  last  six  years,  althcuigh 
the  poi)ulation  of  the  United  States  has  increased  considerably. 

17.  NWdo  not  believe  that  over  50  ]ter  cent  of  the  wheat  prodiu'ed 
in  this  (country  can  be  absorbed  in  our  domestic  markets.  The  balance 
is  used  for  exjxn't  and  for  seeding  ])uri)oses.  If  all  tluc  capacity  of  the 
mills  in  tlu^  I  iiited  States  Avere  utilized  in  manufaoture  lor  the  home 
trade  and  the  balance  for  export,  Ave  believe  the  entii'e  surplus  Avould 
be  exjtoited  in  the  shape  of  the  manufactured  article.  The  milling 
interest,  in  our  opinion,  is  too  large  for  almost  any  necessity ;  at  the 
same  time  Ave  beliexe  it  can  l)e  made  prolitable  if  run  75  per  cent  of  the 
time  per  year. 

1<S.  The  elfect  of  the  reciprocity  treaties  made  in  is<,)()  Avere  favoraWe 
to  the  exjjort  trade  of  the  United  States;  tluiy  kept  the  Hour  trade  in 
a  healthy  coudit ion.  and  wenc  the  I'eason  of  the  line  development  of 
that  industry  that  has  placed  us  ahead  of  iill  olhei' milling  countries. 
The  ellect  of  their  repeal  is  the  disastious  condition  of  the  nulling 
trade  now  existing.  Inuuediately  after  the  ahi'ogation  of  the  recipi'oc- 
ity  treaties  bv  foreign  countries  some  few  years  ago,  the  Xew  York 
Tribun»c  wrote  us  asking  our  ojjinion  regarding  Avhat  tlu'.  result  Avouhl 
be.  \V^'lllin^  we  are  on  re(!ord  with  them  slating  at  that  tinu'  that 
the  result  would  be,  in  our  opinion,  that  wheat  in  St.  i^ouis  would  never 
be  worth  over  75  cents  jter  bushel  under  any  circumstances,  except 
comparative  famiiu>.  Siiu'e  that^  tim(>  we  have  had  ])o()r  (crops,  l)ut  the 
price  of  wlu^at  has  nevei'  stayed  om^  week  in  this  market  over  75  cents 
])er  bushel,  and  has  been  as  low  as  40  cents  ])er  bushel,  and  it  did  not 
reach  75  cents  per  bushel  by  legitimate  means. 

10.  The  ellect  »ni  farm  ])roducts  has  been  w  i)r()dn(ction  of  other 
aiticles  besides  wheat  to  such  an  extent  that  it  has  reduced  their  value 
lower  than  any  retcord  of  any  previous  years. 


^ 


I  liable 
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bt  the 
cents 
lid  not 

otlier 
value 


RECIPROCITY    STATEMENTS. 


353 


Our  replies  to  in(iniries  17  au<l  18  are  from  actual  experience  aud  au 
experience  in  this  trade  steadily  since  1858. 

'20.  We  iavor  the  reciprocity  principle  in  future  taritf  legislation 
from  bcjL^inning  to  end,  believinjy  the  present  system  is  as  direct  an 
exhaustion  of  the  strenj:jtli  of  tlie  Uniied  States  as  can  possibly  bo 
adopted.  We  believe  that  the  producing- capacity  of  the  United  States 
of  raw  material  is  the  basis  of  all  conilbrts  that  both  rich  and  ])0()r  can 
jjel;  their  manufa<;ture  is  Just  so  much  more  additional,  as  it  disj)(>ses 
of  our  labor  with  ra\v  material.  Any  lej^islation  that  cuts  olf  our  labor 
iu  the  shape  of  manufacture  of  raw  material  siujply  im|»overislies  the 
coiintry,  and  espc(Mally  the  laborin.^;'  jioition  of  the  country,  Just  tliat 
much.  We  believe  that  any  country  that  will  iliscriminate  ajiainstour 
labor  should  be  shut  olf  comnicrcially  from  the  United  Stat».'s  altoyether. 
Wc  woidd  be  better  olf  and  liave  tlui  j^old  that  they  would  otherwise 
draw  from  us  and  which  we  need  very  badly. 


Sperry  Flour  Company,  ^an  Francisco,  Cal. 

We  are  a  corporation  orj^anizcd  under  the  laws  of  California,  running 
twelve  ditferent  Hour  mills,  and  manufacture  about  a  million  an<l  a 
quarter  barrels  of  Hour  j)er  annum,  of  whidi  about  45  j)er  cent  is 
exi)orted.  A  large  nund)er  of  the  markets  with  which  we  deal  are  ojjeu 
to  free  trade,  aud  therefore  have  no  injurious  customs  regulations.  We 
refer  especially  to  the  Asiatic  markets,  but  we  would  call  your  atten- 
tion to  the  heavy  duty  imposed  upon  the  flour  shipped  to  the  I'hilii)pine 
Islands,  a  colony  of  the  Kiufjdom  of  Spain.  This  duty,  amountinj^  to 
$2,  iMexic.an,  per  barrel,  besides  i)ort  charges,  makes  a  very  heavy 
discrimination  iu  favor  of  Barcelona  Hour,  which  is  shipped  thither 
direct  from  Spain.  A  short  time  ago  (mr  correspondents  wrote  us  that 
the  colonial  gov'ernment  threatened  to  demand  82  in  gold  i)er  barrel, 
instead  of  Alexican,  but  our  correspondent  made  earnest  remonstrance 
and  the  threat  was  not  carried  out. 

Our  country  imports  largeamountsof  sugar,  hemp,  and  other  products 
from  the  Philipi)ine  Islands,  a  very  considerable  proportion  of  which 
is  admitte<l  ahnost  tree  of  duty,  and  it  seems  to  us  that  it  would  be  no 
more  than  fair  that  a  reciprocal  benefit  shouhl  apjdy  to  our  own 
American  products;  at  all  events  if  reciprocity  should  again  become 
the  policy  of  the  country,  we  hope  the  Philippine  Islands  will  be  jdaced 
on  the  same  basis  as  Cuba,  aud  American  flour  adnutted  free  at  Manila, 
as  it  was  formerly  at  Habana.  This  last  point  wc  insist  upon  as  ouly 
even-handed  justice. 

n.  Itep.  2203 23 


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iN 


i 


PROVISIONS. 


CIRCULAR  or  INfJIimY  TO  MANUFACTrRERS. 

Committee  on  Ways  ain'd  Mean^<, 

House  of  Representai  ives, 
WashbifiUm,  I).  (I,  March  4,  ]sr)6. 

Sm;  In  order  tliat  tliey  inny  ^ive  more  intelligent  consideration  to 
pendinji"  and  proposed  legislation,  the  subconiinittee  of  the  Committee 
on  Ways  nid  Means  of  tlie  House  ot  Re{>resentatives  in  <'har<>e  of  bills 
relating  to  recii)ro('ity  arrangements  and  commercial  treaties  would  bo 
greatly  obliged  if  you  would  Ibrward  tbem,  at  your  earliest  conveu- 
ience,  your  views  and  suggestions,  ami  such  information  as  you  are 
able  to  furnish  upon  the  following  ])oints,  imniely : 

1.  Giv(^  full  name  and  address  of  tirm  or  company. 

2.  Lines  of  nmnnfacture. 

3.  Ainount  of  capital,  number  of  jiersons  em])loy{'(l,  and  value  of 
annual  product. 

4.  Do  you  find  your  market  at  home  or  abi'oa<l,  and,  if  both,  in  what 
pro))ortioTi  ? 

5.  Do  you  sell  direct  to  foreign  dealers  or  throngli  commission  houses? 
(5.  Have  you  made  any  direct  etlbrt  to  extend  yimr  foreign  trade; 

and  if  so,  by  what  means,  with  what  success,  and  in  wliat  countries? 

7,  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  prevent  the 
extension  of  your  trad<^;  and  if  so,  can  you  suggest  any  means  by 
which  tliey  may  be  removed  ? 

8.  What  diangcs  luive  recently  occurred  in  the  tariflCs  of  foreign 
countries  so  far  as  they  rchite  to  youi-  lines  of  matuifacture? 

*,).  Mow  far  would  tiie  removal  or  reduction  of  tiu>,  customs  duties 
im])osed  by  foreign  nations  upon  the  merchandise  in  whiith  you  deal 
aid  in  the  extension  of  your  exjjort  trade? 

10.  Whal  is  the  outi)ut  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  llow  does  the  present  cost  of  ))ro(lu(!tion  <'ompar(^  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  himl? 

lU.  How  do  i)resent  selling  i)rices  compare  witli  those  of  six  years 
ago  ? 

l.'i.  What  comi)etition  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  markets? 

11.  Wliat  advantages  do  your  foreign  competit<M\s  have  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

15.  To  what  extent  can  you  compete  with  foreign  manufacturers  iu 
quality  and  prices  f 
354 


•v. 


RECIPROCITY    .STATEMENTS. 


355 


•tnal  cxperi- 


10.  TTns  the  total  product  of  the  TTnitod  States  in  your  lino  of  niann- 
factnro.  increased  oi-  decreased  during"  tlio  last  six  years? 

17.  Wiiat  proportion  of  tlie  total  present  and  ])ossible  ontjint  in  your 
lines  of  manufacture  in  the  United  States  (^in  be  absoii)ed  by  tlie 
donu'stic  market;  and  what  would  be  your  estimate  of  the  natural  sur- 
plus for  export  if  all  manufacturers  in  your  lines  were  producing  to 
their  full  cai)acity  ?  (The  pnrjiose  of  this  inciuiry  is  to  secure  as  accurate 
an  estimate  as  i)ossible  of  the  iiecessity  for  new  foreign  markets  to  the 
manufacturers  of  the  United  States.) 

IS.  A\as  the  general  effect  of  the  reciprocity  treaties  made  in  ISOO 
favorable  or  unfavorable  to  the  expvyrt  trade  of  the  United  States,  and 
what  Avas  the  etfect  of  their  repeal '! 

]{).  AV'hat  was  tlu^  effect  upon  iarm  ]>rodncts  particularly! 

(If  your  replies  to  iiujuiries  17  and  18  are  based  ui)on  act 
ence,  ])lease  give  details  as  fully  as  possible.) 

l*b.  Do  you  iavor  the  a])|)lication  of  the  re(!iprocity  ]irinci()le  to  future 
tariff  legislation,  anil  the  enactment  of  a  general  law  authorizing  the 
Tiesident  to  negotiate  reciprocity  treaties  Avitli  botli  European  and 
American  nations,  so  far  as  ])ossible? 

These  iufpiiiies  ha\(^  been  forwarded  to  several  hundred  persons, 
firms,  and  eorpoiations  who  are  engaged  in  the  nianulacture  of  various 
lines  of  nierclnuidise  that  enter  into  tin*  ex])(»rt  trade,  and  the  replies 
are  inteiideil  Ibr  publication  with  a  rejxjrt  which  the  (.Committee  on 
Ways  and  Means  will  make  to  the  TTouse  of  Kepresentatives;  but,  if 
so  desii-cd.  any  iMlbrnnitioii  leceived  will  be  regarded  as  confidential. 
All  valiH's  slKuxld  l)e  exj)ressed  ii!  ITnited  States  gold,  and  all  <|uaiitities 
in  our  weights  and  measures. 

Any  suggestions  or  infornmtion  of  value  bearing  on  these  subjects 
tliat  is  not  called  for  by  tlie  above  impiiries  will  bo  appreciated. 
I  am,  sir,  your  obedient  servant, 

A.  J.  Ifoi'KiNS,  Chairman. 


REirLIES. 


that  of 

hat  of 
|vnspor- 

years 

Ifnrers, 

ler  you 
foreign 

I'cu'S  in 


Armaiir  lO  Co.,  Chicago.,  111. 

2.  The  lines  of  trade  engaged  in  are  |»i'ovisions,  glue,  hair,  wool,  and 
fertilizer. 

.'5.  We  deal  with  the  following  foreign  countries:  (Ireat  Britain, 
France, Geinniny,  Holland.  Sweden  ami  Norway,  West  Indies,and  South 
America. 

4.  While  at  all  times  ]msliing  trade  thi-oughont  Europe,  we  have  dur- 
ing the  past  year  made  a  special  personal  elfort  to  extend  oui'  trade  in 
South  America,  with  some  success. 

n.  We  are  not  aware  of  any  <liscriminntion.s  in  the  customs  legula- 
tions  of  any  foreign  country  restricting  our  trade,  and  regard  heavy 
duties  as  the  chief  obstacle  to  increased  trade. 

(I.  Wearenot  aware  of  there  having  been  any  ijuportant  tariff  changes 
recently  alfecting  our  lines  of  ])rodu(;t. 

7.  The  removal  or  reduction  of  the(!ustoms  <lntiea  imimsed  by  forcMgn 
nations  would  ])lace  this  country  in  resi)ect  of  provisions  in  the  front 
rank,  and  wouhl  imivitably  increase  our  export  trade  enonnously, 

8.  Our  domestic  business  has  increased  since  ISSUabout  .'{7A  percent, 
owing  to  enlarged  facilities  for  distribution  and  organized  elfort  to 


Hi  a 


li 

i. 

I 

M<' 

'  ^^'' 

m 

M 

™ 

i[: 


iri;  5-       ■■■  i;»" 


k 

$ 

iH 


i 


356 


RECIPROCITY    STATEMENTS. 


incieiise  trade.     About  one-eight li  of  our  total  business  lias  been  with 
tbrcijin  countries. 

1).  Oiw  selling  prices  do  not  materially  ditt'er  from  those  of  six  years 
ago. 

10.  In  the  cost  of  merchandise  dealt  in  by  us,  foreign  competitors 
rarely  have  any  advantage  over  us.  Our  trade  with  the  South  Ameri- 
can Kepublics  is  seriously  hampered  by  lack  of  reliable  transportation 
facilities.  Exact  advertised  dates  of  sailing  enable  dealers  in  South 
America  to  order  goods  from  foreign  c()mi)etitors  with  assurance  of  ship- 
ment at  regidarly  spccilied  times,  while  we  have  to  submit  to  tiie  move- 
ments of  the  irregular  steamships  with  no  settled  dates  for  departure 
or  arrival. 

11.  We  can  comi)ete  favorably  with  foreig  •  merchants  both  as  to 
quality  and  prices. 

12.  The  general  effect  of  reciprocity  treaties  made  in  1890  was  lavor- 
able.  There  was  prospect  of  marked  improvement,  shown  by  iuciease<l 
incjuiry,  and  business  with  South  America  was  stimulated  by  investiga- 
tion as  to  trade  re(piirements.  VVI.ile  during  the  operation  of  these 
treaties  insuHicient  time  was  given  for  actual  develoi)ment,  considerable 
l)rogress  was  made  and  unquestionably  would  have  continued  had 
these  treaties  not  been  repealed. 

13.  We  favor  the  application  of  reciprocity  principles  to  future  tariti' 
legisiati"»n. 

(Covering,  nearly  as  we  can,  other  items  alluded  to,  we  would  say 
that  foreign  competitors  in  our  lines  of  business  have  the  advantage 
ovei-  us  of  cheai)er  wages  and  more  reliable  means  of  transportation; 
yet,  we  feel  that  both  as  to  (juality  and  prices  we  can  compete  favora- 
bly. We  realize  the  disadvantages  arising  from  lack  of  regular  trans- 
])ortation  perhaps  to  a  greater  extent  than  anything  else,  except  the 
higli  duties. 

The  effect  of  the  repeal  of  the  reciprocity  treaties,  we  think,  was  dis- 
asti'ous  to  farm  produ('ts,  inasmu(th  as  grain  exports  are  largely  regu- 
lated by  the  extent  to  which  manufactured  goods  are  taken  in  exchange 
for  them,  and  the  uncertain  character  of  the  comnumication  between 
the  I'nited  States  and  South  America  has,  to  s;»nie  extent,  given  indi- 
rect comfort  to  the  grain  growers  of  Chile  and  Argentina. 

As  consumption  of  our  products  is  very  hugely  regulated  by  their 
relative  cheapness  or  dearness,  we  have  no  doubt  the  renmval  or  reduc- 
tion of  customs  duties  would  very  greatly  increase  the  demand  and 
would  emjdoy  fully  the  present  capacity  for  production. 

In  general,  we  would  say  that  we  decidedly  favor  the  reemictment  of 
reciprocity  treaties,  believing  their  effects  would  be  beueiicial  in  our 
own  and  in  all  other  lines  of  trade. 


Mr.  E(ln-in  Ross,  of  Armour  tO  Company,  Chicago,  III. 

In  furtherance  of  the  interests  of  the  Arm,  1  visited  lirazil  last  year 
and  made  a  careful  study  of  the  re(piirements  of  that  country  in  the 
line  of  pork  products. 

J^\)r  a  number  of  years  supplies  of  this  nature  have  been  drawn  from 
this  country  to  a  considerable  extent,  but  we  are  unable  at  this  writing 
to  give  any  <!omparative  ligures  showing  the  volume  of  exports  during 
the  i)eriod  of  the  existi'nce  of  the  recent  reciprocity  arrangements  and 
since  their  repeal.    There  is  no  question  in  our  minds,  however,  that 


u  with 

c  years 

)etitors 
Anieri- 
rtiitiou 
Soiitli 
jt'sliip- 
',  move- 
[)jirturc 

li  iis  to 

s  lUvor- 
crcased 
k^estiga- 
)f  these 
derabh'- 
ed  had 

re  tariff 

uld  say- 
vantage 
irtation ; 
tavoia- 
ir  tians- 
^ept  the 

ras  dis- 

y  reyii- 

xchange 

)et\veen 

11  iiuli- 


i) 


y  their 

ledue- 

\n\  and 

meat  of 
ill  our 


ist  year 

f  iu  the 


u  from 
writing 
during 
iits  and 


ler,  that 


KFX'IPKOCITY    STATEMENTS. 


357 


under  reciprocity  arrangements  we  can  be  assured  of  a  continuance  of 
our  relations  on  a  hirger  scide  than  at  ])resent,  and  this  will  apply  to 
the  niiinutacturiiig  interests  in  this  country  in  general  as  wc^il  as  those 
of  the  pa(;king  industry.  V\'c  consider  the  present  iin])()rt<iuty  exacted 
by  the  Brazilian  ( Jovernment  on  provisions  exctvssive,  and  any  adjust- 
ment of  same  on  a  more  ecpiitablo  basis  would  be  hailed  by  us  with 
much  ssitisfactioii. 

In  (;onveraation  with  our  (ionsular  agents  in  South  America  I  learned 
that  the  ollicial  returns  at  tiie  various  ports  conclusivc^ly  showed  that 
American  manulacturers  in  general  were  making  substantial  headway 
in  th(>,  introduction  of  their  goods  under  the  last  reciprocity  treaty,  and 
that  since  its  repeal  the  ground  then  gained  has  been  lost  to  a  hirge 
extent. 

Owing  to  the  peculiar  climatic  conditions  tlie  development  of  that 
country  will  constitute  it  an  iin])orter  of  all  manufacture<l  goods  on  a 
constantly  increasing  scale,  and  any  reciprocity  arrangements  that  can 
be  satisfactorily  arrived  at  between  the  Brazilian  ami  American  (Jov- 
ernnients,  of  a  ihorovighly  ])ra(;tical  nature,  in  cmr  opinion,  will  prov<'  of 
greater  value  to  this  country  in  general  than  is  fully  appreciated  at  the 
l)rescnt  time. 

In  order  to  derive  the  full  benefits  of  such  reciprocity  arrangements, 
Iiow(>ver,  fast  steJim  communication  by  regular  line  of  iiigh  class  steam 
vessels  is  nothing  short  of  an  absoluti^  necessity.  England,  France, 
Germany,  ami  Italy  have  been  and  are  unrelenting  in  their  efforts 
to  place  the  J^razliaii  buyer  in  the  closest  possible  tou<!h  with  the 
manufacturers  in  tliese  countries. 

Our  European  neighbors  are  extremely  jealous  of  the  practical 
monopoly  they  enjoy  in  South  America,  and  if  this  country  hopes  to 
compete  successfully,  equal  transportation  facilities  will  have  to  be 
offered.  This  lack  of  regular  fast-mail  communication  jdaces  this 
country  at  ju-esent  at  an  inestimable  disadvantage. 

iMoreover,  the  establishment  of  banking  arrangements,  whereby  the 
interests  of  American  manufacturers  will  be  carefully  guarded  and 
encouraged,  would  seem  to  be  highly  desirable,  as  it  is  but  natural  that 
English  banks,  having  practically  a  monojjqly  in  South  America,  will 
favor  their  own  countrymen  and  place  as  many  obstacles  as  possible  in 
the  way  of  direct  (;o!npetitors. 

]  havt;  made  reference  to  these  matters  of  transportation  and  banking 
to  further  emphasize  the  desirability  of  a  reciprocity  treaty,  as  without 
such  it  can  not  be  hoped  withany  degree  of  conlidence  that  these  enter- 
prises couhl  be  conducted  suc(!essfully.  Each  will  materially  aid  the 
other  for  the  general  good  of  the  American  manufacturer. 


The  Cudahy  Pncldng  Company,  Chicayn,  Soiifh   Omaha,  Siov.r  City,  and 

Los  Angeles. 

2.  Beef  and  hog  ])roducts  of  all  kinds,  inclusive  of  oleomargarine, 
beef  extract,  pe])sin,  etc. 

3.  Amount  of  cai)ital,  $3,500,000.  Twenty-five  hundred  persons 
em])loye(l.     I'jighleen  million  dollars  worth  of  annual  product. 

4.  The  bulk  of  our  trade  is  at  home,  but  we  export  between  $3,000,000 
and  $  1,000.000. 

r>.  The  United  Kingdom  and  the  Continent  of  Europe.  We  sell 
directly  to  foreign  dealers,  but  to  the  South  and  Cential  American 
trade  we  sell  through  commission  houses  at  the  various  seaboard  cities. 


^;, 


Mi  I 


'  u 


358 


ItECIPROCITY    STATEMENTS. 


0.  Wo  have  made  no  siMH'ial  cftort  to  extend  our  lbreiji:n  trade;,  exclu- 
sive of  concspondciico. 

7.  \Vc  kiiowol'  iiodiscriniination  ;i;;aiii8t.Vnieri<'an])rodnet.s<!oin])ar('d 
with  those  of  other  countries,  willi  the  exception  of  France  and  (lerniany, 
which  re(|nir(;  tlie  (ioveinnieiit  iiiicnoscopicai  examination  ol"  meats 
before  permittiu};  them  entrance.  We  wonUl  call  your  attention,  how- 
ever, to  tlie  very  hea\y  duty  eharf>ed  by  both  Franite  and  (lermaiiy 
ujion  American  meats,  aniountin,ij  1o  about  U^  <!ents  i)er  ])oun(l,  or,  on 
present  maiket  vabies,  e<inal  to  about  '^'^}^  ])er  cent  ad  \ah)rem.  We 
(•ertainly  think  it  wouhl  lu'lp  the  expoit  traiU',  in  ho<;  ])ro(hicts  if  thi.s 
restriction  astothe  impoilation  of  vXmerican  meats  w«'ie  to  beabobslu'd, 
and  \('ry  nuich  so  if  the  duty  on  these  floods  could  be  entirely  removed. 
There  is  also  practically  a  ])rohibifion  of  the  export  of  liv(5  cattle  and 
dressed  beef  to  (Jerman>'  and  l''iance,  but  as  these  countries  have: 
taken  veiy  small  (pumtities  of  these  products  in  the  past,  the  ])i'ohibi- 
tiou  is  of  no  <;reat  moment. 

8.  We  know  of  no  recent  chanji'es  in  the  taritis  of  foreijiii  countries 
except  a.  very  si if-ht  inci'cast^  in  the  tariff  on  <'anned  meats  imported 
into  (iermany  thronnii  [land)urji'  and  Uerliu. 

0.  The  removal  of  customs  duty  in  I-'rance,  (iermany,  and  the  other 
Contiiunital  Kuro])ean  countries  would  uiuloubtedly  lielp  considerably 
the  exi)ort  trade  in  nu'at  products. 

10.  Tile.  out])ut  of  our  establislnnent  is  considerably  larger  than  it 
was  six  years  aji'o,  as  we  have  recently  added  several  packin<>'  houses. 

11.  We  know  of  very  little  variation  in  cost,  Avayes,  and  transporta- 
tion, lom pared  with  the  prices  rulinj;-  six  years  a^o. 

IL*.  The  market  'or  live  ho^s  and  cattle  is  constantly  tluctuatinji,  ami 
therefore  the  \n  s  of  our  manufactured  ])roduct  are  also  lial)le  to 
wide  tluetuatiou  in  value,  and  a  comi)arison  with  those  rnlinjEf  six  years 
aj^o  is  (»f  little  value. 

1.').  Tlie  nuirkets  with  which  we  deal  are  open  to  the  competition  of 
the  world.  In  ho}>'  products  our  chief  competitor  is  at  ])resent  Den- 
mark, for  the  trade  of  Great  Uritain:  and  in  beef  lu'oduets  Australasia 
and  Argentina  are  sliarj)  competitors,  and  are  interfering  considerably 
with  the  prices  obtainable  for  American  i)roduct  in  Europe.  This  com- 
petition is  rapidly  becoming  of  great  conscMjUence  to  the  ]>rodu(ers  of 
farm  products  in  this  country.  Denmark,  for  exainple,  has  within  the 
])ast  few  years  doubled  her  exjxn't  of  butter  and  hog  ])roduct  to  (Ireat 
Jb'itain.  Australia  and  New  Zealand  are  shipi)ing  l)utt(>r,  beef,  and 
mutton  by  the  sliii)load,  and  Argentina  also  i)r()mises  to  be  a  competitor 
ibr  the  trade  in  butter,  and  es])eeially  in  mutton. 

14.  Our  ibreign  comjjetitors  have  no  advantage  over  us  in  the  cost  of 
manufacture,  nor,  to  any  great  extent,  in  transpoitation.  Their  goods 
are,  as  a  rule,  no  better  liked,  but  the  great  advantage  of  our  Australian 
competitors  is  cheajx-r  raw  )nalerial. 

15.  We  can  com[)ete  suc(;esslully  with  foreign  mainifacturera  in  both 
(juality  and  piice. 

10.  We  do  not  think  iiu'  toial  jtrodiict  of  the  United  States  in  our 
line  has  varied  veiy  muc'.i  during  the  i)ast  six  years. 

17.  It  is  impossible  for  ns  to  giv(;  any  dellnite  answer  to  this  question, 
but,  luidoubtedly,  as  the  population  of  tlu^  United  States  increases,  our 
home  market  will  bet^onie  of  more  and  more  importance,  and  our  foreign 
trade  in  meat  i)roducts  less. 

IS.  We  are  unable  to  answer  this  (|nestion,  as  we  do  but  little  direct 
business  with  the  countries  with  which  the  United  States  entered  into 
reciinocity  treaties, 

li).  We  think  tlie  reciprocity  treaties  had  but  very  little  effect  upon 


liECIPIlOCITY    STATJiMENTS. 


359 


of 
he 

>ilt 

111(1 
tor 

of 
(ids 
iiui 

.th 

our 

on, 
I  Mir 
igu 

ect 
nto 

)on 


the  Viiliu^  of  farm  ])ro(liu;ts,  simjjly  for  tlu^  rcjisoii  tliat  I']ur()i)eau  coun- 
tries taUe  ninety-livt'  one  liuiidri'tltlis  of  tluvs*',  j)r(»(lu';ts,  the  ports  of 
Jiivori)ool  and  J  ondon  aloiH>  taking  of  our  goods  nearly  as  much  as  the 
rest  of  the  world  comljiiuMl. 

liO.  \\'(^  strongly  tiivor  thf  ;ii»i)lication  <»f  the  recii)rocity  i»riii('ii»U'  to 
all  future  tiiriff  legislation. 

In  conclusion  would  state  tiiat,  while  our  industry  <'onsists  <d'  luiuiu 
facturing  fiiriu  |»i'odu<'ts,  wo  can  hardly  be  called  "•  maiiidiicturcrs,'' 
in  the  general  use  of  this  term.  Our  business  relations  Ix-ing  almost 
entirely  witii  I'^uropean  countiies,  the  ac-tion  of  any  South  or  Central 
American  countries  has  but  little  ellect  upon  us.  While  we  most  cer- 
tainly desiri^  in  every  way  the  extension  of  tlie  nmrket  tor  Amei'ican 
nniuufactuies  abroad,  still  it  s(^ems  to  us  that  as  long  as  American 
manufacturers  insist  upon  a.  i)rotectiv<'  taritf  for  the  sale  of  their  goods 
in  this  country,  they  can  hardly  expect  to  compete  in  foreign  countries 
with  the  maiuifaeturers  of  Europe. 


The  National  Prorisioiicr  Puhlishiiu/  Com  pa  in/,  Xrw  York. 

The  National  I'rovisioner  is  the  organ  of  the  meat  and  provision 
industries  of  theUniteil  States,  and  is  so  recognized  both  in  the  I'niieil 
States  and  in  Eiiro])e.  It  circulates  all  over  tlie  world,  an<l  particularly 
in  those  countries  in  whittli  American  prodncis  are  sold. 

4.  My  constant  elVort  as  editor  is  to  avail  myself  of  every  opi)ortunity 
presented  to  urge  extension  of  AnuM'ican  trade  in  foreign  <'ountrie8. 
We  accomplish  this  best  by  (constantly  pointing  out  the  kinds  of  meats 
desirable  in  ceri  -lin  markets,  and  advising  t  iu*  trade  to  adheni  as  (dosely 
as  they  i)ossibly  can  to  the  stated  re(iuireinent>.  The  result  has  been 
that  now  shii»i)ers  study  nun-e  closely  what  these  re([uivements  are,  and 
shape  their  business  ac(Mudingly.  Thus,  one  packer  av ill  pack  meats 
which  are  cured  and  ])repared  for  the  iMiglish  trade  only;  another  will 
pack  beef  or  i)ork  which  would  not  sell  to  any  other  but  a  South  Amer- 
ican country,  and  so  on.  I  recognize  that  Ave  necessarily  have  a  large 
surplus  all  the  time  of  ])ork  and  beef  products,  and  that  any  conditions 
that  arise  tending  to  harm  or  curtail  our  exjiorts  are  at  omte  a  detri- 
ment to  the  industry,  and  must  certainly,  in  the  end,  be  a  drawback  to 
our  agricultural  interests. 

The  packing  trade  linds  itdilhcult,  however,  to  nnike  the  farmer  under- 
stand that  wlien  meats  of  a  ceitain  kind,  say  lean  i)ork  ])rodu(;ts,  are 
re(iiiire(l  the  fanner  has  to  do  his  share  in  meeting  this  changed  denuind, 
and  consequently  the  farmers  of  countries  which  aremorealert  in  these 
matters  get  the  '•'inside  track"  and  Anu'ricaii  products  lose  ground.  I 
haveoltener  tliauoncecalled  attention  to  the  subject,  and  only  recently 
pointed  out  in  my  i)a])er  that  Anu'riean  provisions  were  losing  ground 
owing  to  the  failure  of  our  farnu'rs  to  rais(!  h(»gs  nu)re  adapted  to  the 
market  recpiirements  of  the  times.  It  is  not  unlikely,  however,  that 
iuditterence  on  the  part  of  our  ])astoral  frieiuls  will  continue  to  show 
itself  until  tlu^y  learn  by  ])()siti\ c  exiierience  .and  are  educated  uy)  to 
the  fact  that  the  day  of  the  enormous  lard  hog  has  passed,  and  that  if 
American  ])roducts  are  to  liold  their  own  in  foreign  nnirkets  thefarnuT 
must  do  his  share  to  maintain  and  retain  that  trade  by  adopting  the 
suggestion  of  the  ])aeker  or  the  eomnnssion  merchant  as  to  what  tin' 
exact  nnirket  reciuiremeuts  are.  It  stands  to  reason  that  if  consumers 
in  a  certain  section  of  say  I'^urope,  i'e((uire  meats  of  a  certain  kind  it 
would  be  folly,  tmd  of  (jourse  useless  for  any  American 


'I  i 


.'X]) 


3fiO 


RKCIPROCITY    STATEMKNTS. 


iiftciiipt  to  sell  ill  that  soctioii  il"  ho  can  not  nioct  its  requiroincnts.  His 
inability  to  do  so  is  now  Itcniiminj^"  to  toil  in  our  Icssciu'd  «'Xi>oits  an<l  in 
the  advance  nuide  by  ollirr  countries,  siidi  as  (Janada  and  Denmark, 
\vlios(^  tarnicrs  have  studied  IIm'  <iucstion  ont  and  ha\c  done  so  to  sonic 
l)ur|>(»se. 

T).  I  think  that  all  forei^ii  cinbav<iO(\s  ajyainst  American  cattle  and 
meats  are  niijust  and  are  niaintaiiied  more  to  stimulate  (h)mestic  a^ri- 
cultnre  than  on  ac<M)nnt  of  any  belief  that  our  cattle  are  diseased  or 
our  meats  unhealthy.  The  latter,  however,  is  the  jiopular  excuse,  and 
in  this  lies  tll(^  injustice  and  unlairncss  of  restrictions.  .\s  to  a  remedy, 
1  think  it  will  be  found  in  either  reciprocity  or  retaliation.  I  favor  the 
latter  as  end»odicd  in  Senator  I'roctor's  bill,  and  do  so  on  the  assumj)- 
tion  that  if  American  meats  arc  not  {"ood  (snoujih  for  (lerinans  and 
Fieiichmen,  then  the  hundreds  of  (Jernian  and  Fren(di  edible  articles, 
lar^'cly  adulterated,  which  are  sliii»])edover  here  are  certainly  not  jjood 
enonjih  for  Americans.  Your  lionoriiblc  body  must  know,  however, 
that  the  sole  cause  of  these  restrictions  is  the  strenj>th  of  the  agrarian 
movement  in  <'.ontinental  I'iUrope.  The  protective  system  is  havinj^f 
good  results,  and  (Icrmany  this  year  has  been  unusually  ])ro(liu'tive, 
b(>th  in  cattle  and  hogs. 

(I.  SiiKM'  the  passage  of  the  AVilson  bill  nearly  all  the  countries  of 
cinitincntal  lOurope  have  either  newly  established  or  increased  already 
existing  embargoes  against  American  cattle  and  meat  products,  and 
liave  added  duties  on  such  products  as  cotton-seed  oil,  which  enters  into 
the  composition  of  a  blended  lard. 

7.  I  think  that  tlie  removal  of  duties  as  well  as  embargoes  wouhl  very 
materially  stimulate  ex])ort  trade. 

S.  What  is  the  volume  of  your  business  compiired  with  that  of  six 
years  ago?  As  to  this  (luestion,  1  will  draw  a  comi)arison  between  our 
exi)ort  busiuess  in  IS!*")  as  compared  with  1894.  Our  exports  in  1895 
show  a  dilfcrence  in  value  as  compared  with  1894  of  $18,898,o77,  which 
sum  is  unfortunately  on  the  wrong  side.  In  1894  the  value  of  our 
exports,  consisting  of  cattle,  hogs,  canned  beef,  fresh  beef,  salted  beef, 
tallow,  bacon,  hams,  i)ork,  and  lard,  amounted  to  $173,370,118,  an«l  in 
189")  to  $154,477,541.  In  1895  we  exported  118,762  cattle  less  than  in 
1894,  lepresenting  a  ditl'erencc  in  cash  on  the  wrong  side  of  $11, 4()L',735. 

Our  exi)orts  of  live  hogs  is  a  small  matter  at  any  time,  but  in  1895 
the  number  increased  by  759  head,  rei)resenting^  a  cash  ditference  over 
1894  of  $4,L*47.  The  Treasury  makes  no  return  of  live  sheep  or  <lressed 
mutton  ex|)orts;  why,  I  do  not  know.  Although  there  has  been  a  good 
deal  of  talk  during  the  year  just  closed  about  our  canned  products, 
and  that  they  were  becoming  less  ])opular  abroad  through  com])etition 
from  other  countries,  etc.,  our  export  returns  show  that  in  1895  our 
(tanned-beef  exports  exceeded  those  of  1894  by  2,148,481  pounds, 
ajiiounting  in  cash  to  $1'70,-I(K). 

In  IVcsli-beef  exi)orts  a  falling  oif  took  place,  which  is  accounted  for 
by  the  cattle  shcu'tage,  which  became  so  im])ortant  a  factor  in  the 
markets  early  in  the  year,  and  the  existence  of  which  the  Department 
of  Agriculture  was  so  doubtful  about.  The  tigures,  however,  showing 
tJH^  sliortage  in  cattle  and  beef  ex])orts  tell  their  own  story.  In  1895 
Anici'ira  ex})ortcd  19,7L*(;,()21  pounds  of  fresh  beef  less  than  in  1894, 
w  hicli  diilerence  represents  in  cash  $8tJ8,(il8.  Our  exports  in  salt  beef 
were  less  in  1895  than  in  1894  by  124, oOl  ])ounds,  but  the  ])rices  were 
higher,  ami  a  gain  on  thcright  side  amounting  to  $51,224  Avas  recorded. 
Our  tallow  expoits  in  1895  were  less  than  those  of  1894  by  10,079,527 
pounds,  representing  in  cash  $5;)4,8(J(i.      This   ditference  was  to   be 


i 


KECIPROCITY    STATEMKNTS. 


.^61 


>T1- 


of  six 

een  our 

in  1895 

,  which 

of  our 

0(1  beef, 

siimI  in 

th:ui  in 

10L',7;55. 

in  1895 

CO  over 

dressed 

;i  };ood 
0(1  nets, 
)etition 

95  our 
pounds, 

ited  for 
ill  the 
irtment 
jliowing 
lu  1895 
n  1894, 
Hit  beef 
>s  were 
I'orded. 
1079.527 
to  be 


exjx^cted,  and  was  one  of  tliosc  chaiif^'es  wliich  the  AiiM^ricaii  trade  can 
lay  at  the  door  of  taiilf  dian'ics,  lor  tallow  was  placed  on  the  tree  list 
by  the  Wilson  bill.  Onr  tallow  exports  were  (|Uite  an  item  prior  to  the 
psissaji'Ci  of  the  Wilson  bill.  l)nt  sincie  then,  instead  of  ix-inji  exporters, 
we  have  almost  become  importers,  with  the  resnlt  that  the  material 
has  never  been  so  chea]>. 

In  bacon,  1S!>5  shows  an  increase  in  (juantity  over  1894  of  51(i.l4LJ 
l)oiinds. bnt  a  (litVerenceon  the  wronj^'side  in  cash  aiiionntin';' to  •';<218,,S(;S, 
showini;"  that  lower  ])riccs  for  this  article  have  rnled  in  1S<»,">,  In  hams, 
the  j^ain  in  1895  over  1S9I  anionnted  to  14,(m5,l'L'4  |>ounds,  repi'esentinj>' 
in  cash  a^ain  of  ><7Sl,(;i,'!>.  I'ork,  like  bacon,  showsan  increased  export 
in  (juantity  in  lSi)5  over  1894  of  5,(»!>5,(H>L'  ijonnds,  Init  ii  loss  in  value 
ainonntinf>- to  s.'Jl 4,004.  Tln^  sain*;  remark  applies  to  lard;  in  (pnintity, 
1895  shows  an  increase  over  1891  of  LJ9, 909,01 1  pounds,  but  in  cash  the 
difference  on  the  wron;;-  sid«^  amounts  to  82,554.049. 

No  very  healthy  lijiures  can  be  expected  on  oleo  oil  exi)orts  for  1895. 
This  trad(^  has  seen  an  exce]»tionally  dull  year,  mainly  due  to  the  imic- 
tivity  of  the  I'hii'opean  maijiarine  chnrners,  conscMiuent  on  the  abnormal 
exi)orts  of  cow  butter  from  Austialia  and  other  countries.  Tables  show 
that  in  1891  our  exports  of  oleo  oil  amounted  to  112,910,170  pounds, 
represent injj  in  cash  >«IO,(»78,t»09.  In  1895  the(iuantity  was  reduced  to 
81.2(>5,024  pounds,  amonntinji'  in  value  to  $(»,894,773,  whi(;li  means,  in 
(juantity,  a  fallin<i'  otf  of  .'il.OI4, 140  pounds,  and  in  cash  >'3.78.'i,,s;{(;. 
Calculating'  the  entiri^  year's  business,  tlu^  loss  in  1895,  as  compared  to 

1894,  amounts,  as  above  stated,  to  ><  18,898,577,  J^higland  is  our  lar^^er 
buyer,  and  I  therefor(>  append  for  the  information  of  your  committee 
some  lijiures  rejiardinji'  our  trade  with  that  country  last  year,  1895,  as 
comi)ared  Avith  1894.  1  als(>  furnish  some  particulars  of  the  jiroffress 
nmde  by  other  countries  in  sui)i)lyin}i;  England's  needs,  which  will  show 
the  {•rowth  of  comi)etition  and  j^ive  sonui  idea  as  to  how  wv  are.  to  an 
extent,  losinjj  what  we  held  hei-etofore  as  undisputed  territory. 

Of  oxen  and  bulls.  I^njjfland's  im]>ort8  in  1895  were  4i;{,.'?;}7  head, 
against  471,794  in  18!>4.  The  imports  from  the  United  States  of  this 
stock  fell  off  considerably.  In  1894  we  sent  John  Hull  381,057  head, 
and  in  1895,276,307.     C!anada  likewise  sent  about  15,000  head  less  in 

1895.  Argentina  took  advantage  of  America's  shortage  and  increased 
her  figures  by  30,000  iiead  over  1894.  England's  im))oi'ts  of  sheep  and 
lambs  increased  considerably  last  year, the  figures  being:  18!)4, 484,597; 
1895, 1,0(55,470,  while  1893  was  down  to  02,082,  of  w  hicli  we  contributed 
none.  The  imports  for  1894  and  1895  were  nu)stly  from  Argentiiui, 
Canada,  and  the  I'liited  States.  Ivxporteis  on  this  side  have  no  reason 
to  be  dissatislied  w  ith  tiu'ir  share  of  the  increased  business,  although 
the  largest  share  went  to  the  South  American  Republic. 

In  1894  we  exported  to  England  198.138  head,  and  in  1895  the  figures 
were  increased  to  453,250.  Canada's  shii»nients  for  1894  were  135,()22 
head,  and  for  1895,  214,310.  Jn  1894  Argentina  shipped  John  lUdl 
7;5,44(;  head,  but  ch)sed  the  year  1895  with  the  big  total  of  .".08.094. 
The  value  of  these  impoits  was  increased  from  ,i;88,.")30  in  1893  to 
£804,82.'{  in  1894,  and  C1.782..">44  in  1895.  These  tigures  show  enormous 
jumps,  and  suggest  that  l^iUgland  is  now  buying  sheej)  for  their  wool, 
for  the  increased  consumption  of  mutton  in  two  years  of  itself  would 
hardly  increase  the  imports  nearly  fourteen  times  over  in  value  and 
seventei'U  in  (piantity.  In  18!)4  England  iniixuted  .'5,089, (501  hundred- 
weiglitof  bacon,  which  was  an  im])rovementover  18!»3  of  about  500.000 
hundredweight.     In  18i)5  the  total  was  4,0(53.418  hundredweight. 

This  shows  an  increase  in  ([uantity,  but  a  diminished  valuation  of 


;i  m 


I  f 

■    ! 


obi 


RECIPROCITY    STATEMENTS. 


about  8l~><>,000,  wliicli  iiM<»lit  ronsoiiably  be  exixicted  in  view  of  the  low 
vahies  of  tlie  past  year  and  keen  eonipetition.  Of  the  total  (|uantity 
for  l<Si)5  the  I'nited  States  <!ont)ibuted  U,(>-H>,482  liundred weight,  or  an 
increase  over  IHiMof  about  1(K>,01H>  hundredwei.ylit.  Dcniiiark's  eon- 
tributi(ni  was  l,(>i;).l);i()  hundredweij^ht,  which  nearly  doubk-d  licr  lij^ures 
for  bS9-t.  Cana(hi  iniinoved  in  lSl)r>  by  over  14,000  liundredweight. 
The  imports  of  lianis  show  a  steady  increase  witli  each  successive 
ear.     The  total  tor  l.Si»r.  was  l,i,'Si),r>18  liundredweij>ht.     Of  this  the 


Inland's  fresh  mutton  imp 
dredweight,  an  im])rovement  of  ab(»ut  ;)00,000  luindredweightover  1S(»4. 
The  largest  pr()])ortion  >vas  received  from  Australasia  (l,()70,0(jS  hun- 
dredweight), Argentina,  (715,L'!)(i  huntiredwcight),  and  Holland  (107,228 
luindredweiglit).  Of  220,108  luuidredwcigiit  of  salt  pork  imi)orted  into 
Enuland  in  bSOo,  122,002  hundredweight  was  fr<»m  the  United  States, 
ant.  the  balance  from  other  (countries  not  specilied.  We  did  better  in 
1804  by  about  28.000  hundredweijiht.  The  increase  from  ''other  conu- 
tri«is"  in  18t)5  was  about  23,000  hundredweight,  while  the  grand  total 
of  all  shows  a;  decrease  in  180.>  of  about  5,000  hundredweight. 

I5iitter  im])orts  show  an  inciease  in  lS\).''t  over  18' '4  of  over  250,000 
hundredweight,  while  margarin,  on  the  other  hand,  shows  a  gradual 
decline  for  liie  i)ast  tliree  years,  tlie  totals  being:  LSi'.'J,  1,200,0"0  iutn- 
drcMlweight;  1804,  1,100,;J25  hundiedwcight ;  1805,  040,108  hundred- 
weight. The  total  Ibr  1805  is  nnide  nj)  as  follows-  Xorway,  0,.'!77  hun- 
drt  d weight;  Holland,  878,827  hundredweight;  Fraiict ,  28,1.'>2  hund>'ed- 
w<'iglit;  other  count rit-s,  23,832  hundredw(!ight, 

bard  imports  for  1805  show  an  iin-vease  over  180  i  of  342,172  hundred- 
weigh  t,t  lie  ligures  being:  1801,  1.400.510  iumdredweight;  1805, 1,742,088 
huiidiedweight,  of  which  this  country  sent  1,081,010  hundredweight. 

Kioni  072,703,274  i)oumls  of  wool  importer!  into  I'iUgla.id  in  18!t.'>  the 
figun's  have  increased  in  1805  to  770,001,300  ixnimis.  Of  this  total 
Australasia  c(mtributed  541,304,383  pounds. 

i'higland's  tallow  and  stearin  imports  and  exports  ar»'  interesting  to 
the  tiiule  on  this  side,  if  only  to  show  what  the  placing  of  tallow  on  the 
free  list  has  done  to  hurt  cmr  foreign  trade  in  this  iiroduct.  In  lo03we 
sent  to  lCng]and.')12,412  hundredweight;  in  1804, 181,870hundredweight, 
and  in  1S05,  104,009  hundredweight.  Sin(;e  1803  Argentinahasactually 
ilonlded  its  eontrihution,  the  <iuantity  for  1805  being  102,780  hundred- 
weight, against  5 1.0 18  hundred  weight  in  1893.  Australasia  has in<'reased 
its  ligmes  likewise,  as  may  be  seen.  In  18J)3  the  total  iini)orta  from 
there  were  1,019,010  humlicdweight;  in  1  S04,  1,424,797  hundredweight, 
a.iid  1S95,  1,80I,2I!>  hundredweight.  In  this  connection  it  is  well  to 
])oint  out  that  the  exports  of  candles  from  England  in  1895  show  an 
improvement  over  18!>4  by  over  4,000,000  pounds,  and  that  the  exports 
of  s(  ap  also  increased  by  153,015  pounds.  'I'iu^  <'X])(»rts  of  tallow  and 
stearin  in  1895  increased  over  1894  by  207.000  hundredweight. 

J(din  J>ull  is  a  large  expoiter  an  Avell  as  im]!orter.  In  1895  he 
ex])orted  provisions  (including  meat)  to  the  value  of  C!>40,785,  which 
most  likely  were  Atnerican,  for  the  embargo  c(tuntries  on  the  Continent. 

Our  Wilson  l)ill  enabled  him  to  (huible  his  wool  exports  ni  1895,  for 
which  year  tiie  total  was  21,717,300  ])o»4iius,  against  12,98 1,900  imunds 
in  1801. 

That  the  ('ilfereinjo  is  due  to  our  taritV  is  juoved  by  the  fa 't  that  in 
18!)  1  l-;ngland  exjKuted  to  the  United  States  5,898.000  |>ouiul.s,  as  agaiiuit 
13,.s23,400  pounds  in  1805. 


KECIPROCITY    STATEMENTS. 


3G3 


:  in 


9.  Present  i)i'ices,  I  should  louglily  estimate,  are  about  lir>  per  cent 
less  tlian  they  were  six  years  ago.  This,  [  think,  is  due  to  the  fact  that 
durinjj  the  dull  times  of  the  ])ast  three  years  eonsum])tion  of  all  kinds 
of  meats,  both  at  h(»iue  and  abroad,  fell  ott'  fully  ;i5  per  eent,  and  to  the 
fact  tiuit  the  supply  continued  normal  and  i)erh:ips  more  so  in  rej^ard 
to  ho}^'  i)roducts.  Values  on  the  Ihiropean  market  luive  also  depreciated 
thi-ou.i^h  Daidsh  competition.  That  (Muintry  of  late  years  has  come  up 
wonderfully  in  the  production  of  bacou  ancl  has  been  ])roduciny  a  very 
choice  article  at  a  very  low  fijiure.  so  low  in  fact  as  to  admit  of  little 
prolit.  The  Danes,  howtner,  lia\(!  ()ractically  driven  Irish  enrers  out 
of  the  business  and  have  hurt  America's  trade  considerably.  The 
Danish  (lovernment  has  been  very  i)atei  nal  in  the  matter  and  lias  done 
eveiytiiing  to  hel[»  both  the  farmer  and  the  jtacker. 

U).  I  am  not  p)'epared  to  say  in  extenso  wliat  advantages,  if  any,  our 
foreign  coni])eti tors  have.  Of  course,  the  schedule  of  wages  paid  to 
workmen  in  Jlurope  is  iiiiu'h  lessiliau  in  America,  but  I  think  this  cir- 
cumstance is  olf'set  by  our  labor  saving  devices  and  the  fact  that  we 
condiu't  o})erations  on  a  much  more  extensive  phiii.  On  this  latter 
account  1  tLi  k  that  we  are  also  favored  in  the  matter  of  freights, 
although  I  can  not  say  positively  that  this  is  so. 

11.  Our  bi'cf  of  late  has  improved  wonderfully  in  quality,  so  much 
so  as  to  iiohl  its  own  in  the  Ihiglish  market  with  the  best-  an<l  when  1 
sjiy  this  1  think  1  might  as  well  be  understood  as  saying  that  it  is  as 
tir.e  as  any  produced.  Of  course  it  does  not  sell  as  well  as  the  homo- 
produ-jcd  ai'ticle,  oi'  what  is  known  as  '"prinui  Scotch,''  but  that  it  can 
be  )>assed  off  as  such  is  evi<lence  that  there  is  nothing  againstitoxcej)t 
that  it  is  ^'.Anu'rican."  Our  bacon  and  beef  ])ioducts  are  always  sold 
in  iM.rope  less  than  the  home  article,  and  are  not  so  good.  Ourcuring, 
etc.,  is  don<!  (»n  too  gigantic  a  scale  to  receive  as  close  attention  as  that 
be.^t<)wed  by  iMiglish.  Irish,  and  Danish  packers:  and  anotlu'r  reason, 
and  perhaps  the  [trimary  one,  for  the  inferior  (juality  of  our  bacon,  etc., 
is  ihat  our  farmers  will  not  study  the  feeding  and  breeding  of  hogs 
closely  enough  so  as  to  meet  the  lemand^j  and  re(]uirements  of  tlie 
foreign  nuirket. 

IL*.  Was  the  general  eifect  of  the  reci|)rocity  treaties  made  in  18(>() 
favorable  or  uniaNorable  to  the  export  trade  of  the  !Jnited  States,  and 
what  was  the  elVect  of  their  I'eiical?  The  reciprocity  treaties  referred 
to  were  decidedly  favorable  to  exporteis  and  the  eifect  of  their  repeal 
was  to  vei'y  much  narrow  export  trade. 

!.'{.  Do  you  favor  the  ajjplication  of  tiie  rcci)>rocity  ])rinciple  to  fnture 
tarilf  legislation,  and  the  enacinuMit  of  a  general  law  authorizing  the 
l'resi<lcnt  to  negotiate  reciprocity  treaties  with  both  Eui()i)ean  and 
American  initions,  so  far  as  jK)ssible .'  1  am  in  favor  of  any  legislation 
that  will  o])en  all  jxrts  to  American  products.  As  i  said  before,  we 
always  have  a  suri>ltis  above  oni-  own  <'onsumptive  demand,  and  the 
easier  and  freer  our  export  p(»ssibililics  are  tlie  Inciter  off  will  the  trade 
be  and  tlie  autre  the  farmer  will  get  for  his  output,  whether  in  cereals 
or  animals. 

As  1  said  belbre,  I  shall  he  glad  to  furnish  you  aoy  other  information 
\ou  may  desire,  and  beg  to  assui'c  you  that  you  can  use  this  communi- 
cati'in  as  you  may  elect.  1  think  that  <'(»nsuhu  r<'ports  on  expoit  j>os- 
sibilities,  if  intelligently  <-irculated.  can  do  a  great  deal  of  goo<l,  ami  I 
think  that  the  (Jovernment  wouhl  bcn<'lit  American  in<lustries  very 
nnu'h  l>.v  sending  intelligent,  well  posted  umi  aionnd  the  world  to 
ascertain  how  the  I'nited  States  can  extend  its  exports. 
Yours,  respectfully, 

.loi    ;  l- A.x'!iN(;  O'Ueili.v. 


3fi4 


RECIPROCITY    STATEMENTS. 


I 

I! 


Plankinton  Vai'lciruj  Compuny,  MilicaKkec,  ir/.s. 

2.  Pork  and  beef  packers. 

3.  Our  cash  workinji'  cai)ital  is  S2r»<>.()0();  eniijloy,  on  an  avoraj^e,  475 
men;  value  of  annual  output,  about  sr),0(H»,(>()(). 

4.  Our  markets  are  about  evenly  divided  between  home  and  e\])ort 
trade. 

T).  We  sell  both  direct  to  foreign  dealers  and  througli  eoinnnssion 
houses. 

().  Have  nuide  considerable  effort  to  extend  our  foreign  trade  with 
England,  France,  and  (lernjany,  with  good  success  in  England,  but 
just  fair  success  witli  (lerniauy  and  Fiance. 

7.  France  imposes  a  duly  on  American  i>ork,  as  does  also  ( Germany, 
and  tlii'se  countries,  generally  s|»eaking,  discriminate  against  oiii'  ])ro 
jluefion  of  pork,  pijncipally.  W*'  have  no  suggestions  to  make  as 
icgiirds  llie  reni(>ial  of  tills  discijmiuation,  any  more  than  that  of 
inciPUHlnu'  l|ie  (liilins  oil  ujllcH  tiiKJ  lilic  gunils  from  those  <!ountries. 
'Hie  Hmifji  Ame)j.  iUI  iiiijl  VVest  Indian  countries  do  not  discriminate 
esjjecliilly  ugaiiist  Aiiieljlipi  porl;  piodiut,  but  their  duties  are,  in  a 
great  many  instances,  as  jifeavy  its  JUU  \h'V  cent,  or  e(|ual  to  the  price  of 
the  goo'i ;  and  sometimes  o\er.  They  are  largo  consuimMS  of  Ameri- 
('.aii  liog  ]»ro(tuct.  and,  by  ieci])rocity,  might  be  induced  to  lower  these 
duties,  which  would  undoubli  dly  increase  the  consumption. 

8.  No  ret!e.it  changes  that  we  are  aware  of 

0.  The  removal  of  <luties  by  (lerniau^  and  I'laiKie  would  probably 
increase  the  business  there  iVom  .Jo  to  rA)  per  cent. 

10.  Can  not  answer;  were  not  in  business  six  years  ago. 

U.  The  cost  of  produ(;tiv!r'  ^"  our  goods,  as  to  w  iges.  is  the  same  as 
it  !u\s  been  for  six  years.  I>y  this  we  mean  that  we  hav(^  not  reduced 
wages,  nor  has  the  the  scale  of  labor  been  reduced  (only  in  some  local- 
ities), to  our  knowledge,  within  tlu^  jni^t  six  years. 

The  cost  of  our  raw  material  varies  considerably  and  would  not  have 
any  significance  whatei  er;  that  is,  as  far  as  the  difference  is  concerned. 
The  inland  freight  rates  nrv  the  same  as  they  were  six  years  ago.  The 
ocean  freight  jates  l)ave  been  nominally  lower  than  at  that  time. 

12.  Selling  prices  relatively  lower  <>n  everything. 

13.  Tlu^  princijjal  foreign  competition  is  Irom  home-grown  hogs  in 
Fjugland,  Ireland,  Denmark,  and  on  the  Continent. 

14.  No  advantages,  v-xcejiting  in  Denmark,  wiiere  hogs  are  slaugh 
tered  on  a  sort  of  cooperative  plan.  th(>  raiser  of  hogs  being  i!it<Meste<l 
in  ])aeking  tstablishments  locateil  in  a  paiticular  hxiality,  and  the 
basis  of  their  ])rices  to  tlu^  raiser  of  the  hogs  is  ligured  on  the  net 
reiurns  of  what  the  u'oduct  sells  for  in  llHM|il|erent  markets,  juinei- 
jially  in  I'ngland. 

lo.  The  foreign  product  in  liHgland,  Ireland,  and  Denmark  sells  con- 
siderai»Iy  higher  than  AnuMican.  In  ijnality,  they  <'laim  it  is  l>etter. 
<  )ur  opinion  is  that  it  is  not 

K!.  Refer  yon  to  the  statistics  as  c(uni»iled  by  the  United  States 
Depart  men t  of  Agricultnre. 

17.  Answered  in  No.  4. 

15.  As  far  as  our  limited  knowledge  in  regard  to  reciprocity  treaties 
nuide  in  IS'.io  goes  we  dt)  not  know  whetlier  it  affected  the  trade  in 
l»ork  iiroduets  or  not.     .Should  say  that  it  d  d  not. 

L'O.   We  favor  reciprocity  and  tariff  legislation. 


»ir*IBftWMiW*-'»yjOi 


['rajje.  475 

tid  cxi)ort 

yimiiission 

ra(l<'  with 
jfliuid,  but 

(Ifrmauy, 
t  our  i)ro- 
make  as 
lu  that  of 
countries, 
^criniinate 
i  are,  in  a 
Ik  price  of 
of  Aniori- 
>wer  these 

l)robably 

le  saiiio  as 
)t  reduced 
lonie  local- 

1  not  have 
'oiKferned. 
iij«o.  Tlie 
nie. 


Iio<;-8  in 


re  slangli 
iti'rested 
iiixl    the 
(lie  net 
-.  princi- 

>cllscoii- 
is  better. 

States 


y  treaties 
f  tra<le  in 


KECIPKOCITY    STATEMENTS. 


Cudahy  Brothers  Company^  MUwauket.,  Wis. 


365 


2.  Pork  packers. 

3.  Capital,  $1,1  L'0,000;  average,  500  persons;  $0,000,000  average. 

4.  Both.     About  luilf  each. 

a.  Direct  and  through  commission  houses. 

<!.  Yes,  establishing  agencies.  Clreat  liritain,  lU'lgium,  Germany, 
Norway,  Sweden,  Cainida. 

7.  Canada  and  (Jernumy  impose  ini])ort  (bities  in  addition.  Micro- 
scoi)ic  inspection  recjuired  by  Gerimmy;  jaohibited  altogether  by 
France;  Uelgium  im))oses  an  import  duty  on  lard  comijound. 

8.  Canada  advanced  duties;  Belgium's  duty  is  recent. 

9.  Think  would  double  business. 

10.  About  the  same. 
1]..  All  about  same. 
IL'.  About  same. 

lo.  Mostly  Cana<lian  and  Danish.     In  all  European  markets. 
14.  Prorcctive  tariffs  and  exclusion  of  American  meats, 
la.  If  there  were  no  restrictions,  couhl  comjiete  successfully  with  all 
countries, 

10.  Decreased  about  10  ])er  cent. 

17.  Caa  not  estimate,  as  have  no  statistics  on  subject.  We  nuisthave 
foreign  trade;  otherwise,  would  have  an  overabundance  for  home  con- 
sumption- conse(piently,  lower  jirices. 

18.  Had  very  little  elfect  on  our  braiH'Ji  oi*  trade,  as  treaties  wore 
made  with  countries  that  do  not  use  ]»()rk  in  any  large  quantities. 

v.).  Had  very  little  effect  on  our  branc'h  of  business,  as  treaties  were 
niadc^  with  countries  that  do  not  use  ]iork  in  any  huge  quantities. 

I'O.  Yes.  Think  reciprocity  treaties  with  Canada,  France,  and  (ler- 
niaiiy  would  remove  all  restrictions  against  pork  and  beef  products  and 
double  our  exi)orts  of  meats,  V\'e  base  this  opinion  upon  the  fact  that 
England,  with  free  trade,  takes  fully  50  per  cent  of  all  meats  exported 
from  United  States. 


1 1 


TEXTILES,  ETC. 


CmCTJLAR  OF  T]S[QTTmY  TO  MANUFACTTTEEES. 

Committee  otv  Ways  and  Means, 

JlorSE   OF    I'El'l.'KSKNTATIVES, 

M'(tsliiii(/t(m,  />.  C,  March  ■/,  18D0. 

Rtr:  In  order  that  thoy  may  give  more  intelligent  eoiisideratioii  to 
poiuling  and  jtroposed  le.i;islation,  tlio  subcommittee  of  tlie  Oommitree 
on  NViiys  and  Means  of  the  House  of  Eei)resenlatives  in  (thurge,  of  hills 
iel;iting to  reciprocity  arrangements  and  (Munniercial  treaties  would  b<^ 
greatly  obliged  if  you  would  forward  them,  at  youi-  earliest  eonAen- 
ii'Uce,  your  views  iind  suggestions,  and  such  information  as  you  are  able 
to  furnish  upon  the  following  ])oints,  nam(dy: 

1.  (live  full  name  and  a<ldress  of  lirm  or  comi)any. 

L*.  Lines  of  :Manul'acture. 

0.  Amount  of  cai)ital,  nuudx'r  <if  ])erson8  employed,  and  value  of 
annual  product. 

1.  Do  you  Iind  your  market  at  home  or  abroad,  and,  if  l)oth,  in  what 
l»roportion  ? 

it.  Do  you  sell  direct  to  Ibreigu  dealers  oi'  through  couunission  houses? 

<;.  Have  you  nuult>  any  direct  elTort  to  i'xtcnd  yonr  fon'ign  ti-ade; 
and  if  so,  by  what  means,  with  wiiat  suci-ess,  and  in  wliat  countries? 

7.  ^Vre  ;,  ,u  aware  ot  any  discriminations  or  obstsK^les  in  the  laws  or 
customs  regulations  of  any  foreign  c(»untry  that  restrict  or  ])revcnttlie 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  n'(;aus  by 
which  Ihey  may  be  removed  ? 

S.  What  changes  have  recently  occurred  in  the  taritfs  of  fonugn 
c(aint;ies  so  far  as  they  relate  to  your  liiu's  of  manufacture? 

0.  How  iar  would  tlie  removal  or  re<luction  of  the  eustoms  duties 
imjjos.'d  by  foreign  nations  upon  the  nuuchandise  in  whi<di  you  deal 
aid  ill  the  extension  of  your  export  trade.' 

10,  Wiiat  is  the  output  of  your  establishment  <!ompared  with  that  of 
six  years  ago  ? 

11.  llow«loes  the  ]>resent  cost  of  i>roduction  comi)are  with  that  of 
six  years  ago;  including  wages,  th?  tost  of  raw  material,  and  iranspor- 
tation  rates  l>y  sea  and  land  ;' 

IL'.  How  do  present  selling  prict  s  comi»are  with  those  of  six  years 
ago  ? 

i;{.  ^Vh!^t  com)»etition  do  you  meet  with  from  foreign  nninufaeturors. 
and  in  what  m."rl:ets? 

14.  What  adv.Uilr.'jes  do  ycmr  foreign  <;om])etitors  have  over  you 
in  the  cost  of  maujlacturt^  jtnd  in  tra- s'-^'tption  <!harge8  to  foreign 
markets ! 

la.  To  what cxtettt  caii  you  co/cm'  i  \' ifi  I>  <  i:  manufacturers  in 
quality  and  lu'ieesi? 


K]-:CIPKOCITY    STATEMENTS. 


367 


S. 


',  1806. 

ration  to 
(minitree 
yo,  of  bills 
kvonld  b«i 
■j  conven- 
1  are  able 


value  ol" 

I,  in  what 

1  Iwnises? 
n  ti'a<le; 
ntiies? 
|e  laws  or 
»vent  tlie 
eans  by 

If  loreign 

lis  duties 
you  (leal 

[h  that  of 

li  that  of 
iLianspor- 

>ix  years 

(aclurers. 

ver  you 
loreijiii 

ItMiers  in 


1(1.  Has  the  total  i)ro(luet  of  th(>  United  States  in  your  line  of  manu- 
facture increased  or  decreased  durinj;'  the  last  .six  years? 

17.  What  ])roi)ortion  of  tlie  total  ])resent  and  ])08sil)le  (»uti)ut  in  your 
lines  of  manufacture  in  the  L'nited  States  can  be  absorbed  by  the 
domestic  market ;  and  what  would  be  your  t'stinuite  of  the  natural  sur- 
])lus  for  ex])ort  if  all  manufacturers  in  your  lines  were  prodncinf;  to 
their  fidl  eapacrity  ?  (The  i)ur])ose  of  this  inquiry  is  to  secure  as  accurate 
an  estimate  as  i>ossil»le  of  the  necessity  for  new  foreign  markets  to  the 
manufacturers  of  the  I'nited  States.) 

IS.  Was  tlu',  geneial  etfect  of  the  reciprocity  treaties  made  in  IStH) 
favorable  or  unfavorabh^  to  the  expoil  trade  of  the  IJiiitetl  States,  and 
what  was  the  effect  of  their  re^ieal  ? 

]i>.  What  was  the  eiVectupon  farm  ])r()<bu-ts  ]>arti<'nlarly  ? 

(If  your  rei)lies  to  iiKiuii'ies  17  and  18  are  based  upon  actual  experi- 
ence, ])lease  give  details  as  fully  as  possible.) 

L'O.  Do  you  fav(»r  the  api>lic;ition  of  tht^  reciprocity  ])rincii)Ie  to  future 
taritf  legislation,  and  the  enactmcn!  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
Americiiii  nations,  so  far  as  possible? 

These  in(piiries  luive  been  forwanled  to  sevcu'al  hundred  ])ersons. 
firms,  and  corporations  Avho  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  tluii  enter  into  the  e\])oit  trade,  and  the  replies 
are  intended  for  ]»ublication  with  a  report  which  tlie  (Committee  on 
Ways  and  Means  will  make  to  the  House  of  Keinesentatives;  but,  if 
so  desired,  any  inlbrmation  received  will  be  regarded  as  contidential. 
All  values  should  t)e  (>xi)ressed  in  United  Slates  gold,  and  all  tpiantities 
in  our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  imiuiiies  will  be  appreciated. 
I  am,  sir,  your  obedient  servant, 

A.  J.  Hopkins,  Chainiiati. 


REPLIES. 


Pha'tiiv  SilJc  Mamc/actnrinij  Company,  ratcrsov.  X.  J. 

I.  Our  com])any  is  the  Pluenix  Silk  Manufacturing  Company  of 
Paterson,  N.  J.j  Allentown,  Pa,.,  and  rottsville,  i'a. 

L'.  The  mannlacturing  of  l)roa<l  goods  and  ribbons  of  silk. 

4.  Our  market  is  entirely  at  home. 

.~).  We  sell  nothing  to  foreign  dealers. 

(I.  We  have  made  no  effort  to  extend  our  foreign  trade,  knowing  such 
an  attempt  would  be  useless. 

7.  We  know  of  no  discriminations  or  obstacles  in  the  connnercial 
regulations  i)f  f(u-eign  countries  that  |»revent  tlie  foreign  extension  of 
our  trade. 

5.  We  know  of  no  recent  changes  in  the  tariff  on  silk  goods  in  foreign 
countries. 

;>.  We  do  not  think  the  removal  or  reduction  of  foreign  customs  duties 
on  silk  goods  would  enable  us  to  export  our  own  products,  but  the 
abolition  of  an  im])ort  duty  on  silk  goods  wouhl  close  our  mills. 

II.  There  is  lu.  niaferial  dilference  in  the  cost  of  production  as  com- 
pared with  six  y<»ars  ago.  Labor  may  bo  a  trifle  cheaper,  while  raw 
material  averages  about  the  same. 


-'/'^W 


36S 


KECIPliOCITY    STATEiMENliS. 


1 


\'A.  ('<)mi)et;ition  isiiict  with  from  maiiufacturers  in  nearly  all  countries 
oithc  jiiobt',  but  most  seriously  I'rom  .lapanese  markets. 

14.  The  advantage  possessed  by  foreign  comi)etitors  over  ourselves 
is  in  the  cost  of  labor,  which  is  oin  one-teuth  in  Japan  to  about  cue- 
half  in  Lyons. 

15.  With  the  existing;  duty  we  *.in  ('om])ete  with  foreif^ii  manufac- 
turers in  the  sale  of  medium  ])riced  fabrics,  but  to  enable  the  American 
manutju^turers  to  compete  with  manufacturers  of  tine  floods  in  lOurope 
there  should  be  a  greater  duty  on  exi>ensive  goods  bej^ond  a  certain 
limit  of  value,  and  the  .lapanes*',  goods  which  can  not  be  at  all  made  by 
American  competitors  should  be  appraised  on  a  silver  basis  and  tlie 
duty  i)ai(l  accHM'dingly  in  gold.  As  the  basis  of  Japanese  production 
is  silver,  they  come  into  our  gohl  market  on  an  a])praisemeut  which  is 
only  about  5r>  per  cent  of  what  it  should  be. 

Hi.  The  total  of  silk  manufacturing  in  the  United  States  has  increased 
during  the  last  six  years. 

17.  All  the  total  i)resent  out])ut  in  the  silk  line  can  be  absorbed  by 
the  domestic  market.  There  would  be  no  surplus  for  export  if  all  silk 
manufacturers  were;  i)roducingt()  their  full  capacity,  if  times  were  good, 
and  the  undervalued  Japanese  goo<ls  could  be  kept  out  of  the  country. 

18.  We  believe  the  general  effect  of  the  reciprocity  treaties  of  181)0 
were  undoubtedly  favorable  to  the  export  trade  of  the  United  States, 
and  that  an  unfavorable  effect  tollowe(l  their  repeal 

L'O.  We  decidedly  favor  the  application  of  the  reciprocity  principle  to 
tariff  legislation. 


•  >. 
i. 
o. 
0. 
7, 


Rock  Rivrr  Cotton  Company,  Jftncsrille,  Wis. 

Cotton  batting,  nnittresses  and  pillows. 

Seventy- 1    e  thousand  dollars;  40;  $150.*KK). 

Home. 

nire<t. 

We  sent  a  num  to  ('ana«l  ',  but  tariff  is  against  us. 

If  ('»it;tda  would  reduce  tariff  we  might  get  some  trade  there. 
8.  N<MU'  rliat  we  know  of. 
0.  Wr  >uin  not  say. 

l(L  We  had  Just  started  in  business  at  that  tinte. 
11.  It  onh  cost  (Uie-fhird  as  much  t-  produce  gxHHls,  as  far  as  labor  Ih 
eoimerned  {»ui  account  of  improved  *  achinery),  six  years  ago. 
hi.  We  meet  with  no  foreign  couipetitioii. 
14.  V\>  do  not  know. 

ir>.  Foreign  eoiujietition  does  not  hurt  us  in  this  couulry. 
l(i.  Iiur^ased. 

17.  Ab«»Ht  one-half. 

18.  We  can  not  say. 
I'O.  Yes. 


Fainmmnt  Worsted  Mills,  PiM.l«delpkm, 

-.  We  maitee  worste*!  yarns. 

.*>.  W<^  employ  about  «i.~)0  hands.  ;tn  1  turn  'wt  product  valued  at  about 
f]. 100,000  annually;  as  tmr  annual  ♦wtpui  -tii  |)ounds"  has  incieased 
i»  the  last  sii  years  tin-  average  valiw*  per  pound  has  deeline«i. 

4.  ( )ur  market  is  entirely  at  liome.     The  price  of  labor  in  this  country, 


KECIPROCITY    STATEMENTS. 


369 


1  couutries 


i  iu<;reascd 


that  renders  protection  a  necessity  in  woolen  mannt'actnrinji-,  makes  tlie 
resulting"  cost  of  goods  so  far  beyond  the  ('(»st  of  same  thing  made  in 
any  otlier  (^onntry  tliat  exi)ort  is  qnite  ont  of  tlie  f|nestion. 
5-1-}.  The  answer  to  4  makes  the  consideration  of  tliesennnecessary. 

13.  Our  only  competition  from  foreign  manufacturers  is  in  the  markets 
cf  the  United  States. 

14.  Our  foreign  competitors  have  these  advantages  over  us:  (n) 
Plants  of  much  less  cost,  resulting  from  lowc)'  wages  paid  carpenters, 
masons,  etc.,  engaged  in  bnildingoperations,  with  lower  costs  for  nmny 
building  materials.  (/>)  jMachinery  i>aying  a  <luty  of  .'}.■)  per  cent  (form- 
erly 45  per  cent)  here,  the  ecpiipnuMit  of  a  foreign  mill  is  at  i)roportion- 
ately  less  cost,  (c)  From  a  and  />,  and  k>wer  rates  on  money  abroad, 
the  "  lined  charges"  are  less  to  our  foreign  competitors,  (d)  In  I*hig- 
land,  the  wage  list  of  our  mills  would  be  cut  in  half;  on  the  (Jontinent 
we  could  save  nearly  tw'o-thirds;  and  as  they  run  the  same  machinery 
at  the  same,  or  at  a  higher  rate  of  si)eed,  with  the  same  number,  or  a 
smaller  number  of  hands  running  th«^  machines,  the  advantage  to  the 
foreigner  in  the  nmtter  of  wages  alone  is  enormous. 

IT).  We  can  (^om])ete  with  th<^  foreign  manufacturer  as  to  quality  of 
goods;  the  answer  to  14  shows  that  we  are  out  of  tlie  race  as  to  ])rices. 

10.  The  total  product  in  our  line  of  business  has  increased  in  the  last 
six  years. 

17.  The  mills  making  worsted  yarn  in  this  country  generally  ran 
throughout  the  year  lS9o  on  full  nine,  or  nearly  .so,  and  the  foreign 
manufacturers  landed  here  3.H25),L'2:>  poun<ls  of  worsted  yarn.  It  is 
certain  that  with  all  the  looms  of  this  <  ountry  emphwed  (an<l  they  have 
not  been  in  several  vears  past),  the  entire  (luantiiy  of  worsted  yarn 
made  here  could  be  used  here,  and  there  miglit  be  ateed  of  au  enlarge- 
ment of  the  si)inning  planTs  to  meet  the  demand. 

18.  We  believe  the '' gei!t;ral  eflect  of  the  reciprocity  treaties  nja^le 
in  1S!>0"  was  decidedly  favorable  to  the  export  trade  of  the  United 
States. 

19.  Ilaviuf?  uo  practical  kiiowletiiie,  we  do  not  answer  this  questioi?- 
L'O.  Yes. 


Sprhu/Jirhl  Wool<n  Mills,  Sprimjjichl,  111. 

We  have  no  foreign  trade;  and  while  W(^  are  strongly  in  favor  of  rec- 
iprocity, our  benefits  are  o;ily  such  as  accrue  from  general  prosixMity. 

Our  ihio  of  business  is  snfl'ering  fiom  the  eHects  of  clningcs  inadi^  by 
the  Wilson  bill,  and  the  pas-sagc  uf  the  Dingiey  bill  u(ii||i|  be  of  vast 
benelit  to  us  as  miuiufactnrei  s,  as  well  iis  to  the  sheep  men,  an(|  If  lilt) 
bill  could  be  passed  at  this  session  the  benelits  would  be  millions  oi' 
dollars  to  this  country. 


' f villi  11.  Stetson  C<),:n)urii/,  riiiladvlphiri. 

2.  Hat  nuinufacturlng. 

•i.  Mexico  largely;  also,  in  a  smaller  way,  Lonchui,  lOughnul;  Ilam- 
buig.  Oermatiy;  Paris,  France;  South  Aiiica;  Australia;  Canada; 
Jiuenos  Ayres,  South  America;  Sandwicii  Islands. 

4.  Have  sent  our  own  man  to  Samlwich  Islaiuis,  New  Zealand,  New 
South  Wales,  Sydney,  Melbtiurne,  Brisbane,  London,  Hamburg,  Mox 
H.  liep.  22();5— — LM 


370 


RECIPROCITY    STATEMENTS. 


wages;  without  duties  our  liiglier 


ico,  and  Cuenos  .Vyres.  Sales  have  been  made  and  agencies  established 
in  all  of  tJK?  i>lac('s  visited.  With  the  excei)tion  of  JMexico,  Sandwich 
Islands,  and  Ijondon,  our  agencies  have  been  established  at  too  re(,'ent 
a  date  to  aid  us  in  forming  an  opinion,  but  we  anticipate  a  lair  measure 

of  SU(!CCSS. 

").  \\'e  are  not  aware  of  any  discriminations  or  obstacles  in  the  laws 
or  customs  regulations  of  any  foreign  country  that  teiul  to  restrict  our 
trade  any  more  than  that  of  any  other  foreign  nation  entering  into  the 
same  maiket.  The  only  exception  to  this  is  that,  employing  higher 
labor  than  the  manufacturers  of  other  countries,  the  duty  imposed  upon 
our  goods  increases  our  dilliculty  in  making  sales,  as  to  the  necessarily 
high  cost  of  our  labor  is  added  the  duty  upon  that  labor,  which  doubles 
our  difliculties  in  ettecting  sales. 

(i.  \Ve  aie  not  familiar  enough  with  the  tariffs  of  foreign  countries  to 
know  what  changes  have  been  made  recently. 

7.  The  removal  of  duties  imposed  by  foreign  nations  upon  our  mer- 
chandise would  remove  the  ditference  spoken  of  in  our  answer  to  No.  5 
concerning  the  (juestion  of  higher 
wages  would  not  be  doubled  as  alluded  to 

8.  The  volume  of  our  business  is  about  the  same  as  that  of  six  years 
ago. 

!).  Selling  prices  for  qualities  are  the  same,  but  not  so  many  of  the 
higher  grades  are  sold;  consequently  the  average  selling  price  is  some- 
wliat  lower,  about  (!  i)er  cent  less. 

10,  In  the  cost  of  merchandise  (raw  materials)  our  competitors  have 
no  advantage  over  us.  In  transportation  charges  to  South  America 
they  have  great  advantage  over  us,  having  nuich  better  facilities  and 
much  lower  lates,  as  we  are  informed.  Their  banking  facilities  also 
enable  them  to  have  a  decided  advantage  over  us,  as  all  of  our  collec- 
tions in  Australia,  Europe,  Africa,  and  South  America  must  i)ass 
through  foreign  hands,  at  an  extra  cost  to  us  and  great  loss  of  interest 
by  delay  in  collections.  The  lack  of  these  lacilities  tells  heavier  on  us 
where  tinn^  is  a  factor  in  the  problem,  as  in  these  days  it  is  necessary 
to  be  in  almost  absolute  touch  with  your  customers  in  order  to  hold 
their  trade.  l''or  these  reasons  banking  facilities  are  badly  needed 
direct  between  the  linited  States  and  South  America,  and  also  a  line 
of  steamers  that  shall  give  us  close  and  frequent  connection. 


Jh'ifilKiin-JfopJdns  Coinj)iiiiy,  Baltimore. 

Our  little  experience  with  South  American  trade  encourages  us  to 
believe  that  legislation  tending  to  encourage  trade  with  that  country 
will  be  a  benefit. 

in  Mexico  it  is  the  high  duties  upon  our  goods  /i/^|- prevents  very 
largely  our  doing  business  in  that  country,  and  in  cou/;l;ies  of  South 
A  merica  it  is  wantof  banking  privileges  directly  with  New  Vcifk;  also  the 
high  duties  ui)on  our  goods. 


Rice,  Suyicard  tO  Wliitten,  NfiW  yorJ,-,  ^.  y^. 

Our  business  is  the  manufacture  and  sale  of  clotliiiig  at  wliolesaTe. 
We  hav(;  no  competition  worth  mentioning  from  any  foreign  country, 
but  foreign  woolen  goods  are  being  very  largely  used  in  the  manu- 
facture of  clothing  in  this  country;  so  much  so  that  a  very  hirge  uum- 


ItECIPUOClTY    STATEMENTS. 


371 


bin-  of  the  woolen  niilKs  hero  arc  shut  (h)wu  or  ruiiii'iig  on  sliort  time. 
No  business  jis  huge  iis  thc^wooh-n  inanufneturinj"  business  csin  be  shut 
(h>wn,  or  partially  so,  without  in  a  very  serious  nu'asure  injuriously 
alleeting'  many  other  kinds  of  business  and  throwin.ti'  other  thousands 
out  of  eniployMient;  and  notwithstandinj;'  wcean  sell  clothing' today  at 
less  i>rices  than  three  years  ago,  still  a  large  ]troportion  of  tho  consum- 
ers of  clothing,  being  out  of  work,  can  not  buy  a  suit  of  clothes,  no 
niatter  how  cheap.  Jl",  without  returning  to  JMclvinley  tarilf,  it  could 
be  so  arrangad  that  our  woolen  mills  could  run  and  give  employment 
to  the  thousands  now  out  of  work,  it  wouhl  be  a  great  beneiit  to  our 
business. 


Conloocoolc  Mills  Coiiipdnij,  UilMtoro  JiridtjCj  \.  Jl. 

2.  Underwear  and  hosiery  for  men. 

3.  None. 

I.  No. 
5.  No. 

(i.  Do  not  know. 

7.  Wehavealwayseonaideredoiir  product  best  adapted  to  Americans. 

8.  Twenty  to  thirty  jier  cent  more. 

9.  Twenty  to  thirty  per  cent  lower. 

10.  Subsidized  steamship  lines. 

II.  Answered  by  No.  7. 

lU.  Afy  answer  to  this  is  not  from  actual  experi<Mi<'e,  as  we  export 
nothing;  but  I  have  no  hesitation,  from  my  stiunlpoint,  to  say  what 
everybody  knows:  Ueciin'ocity  treaties  werc^  favorable  to  export  trade 
of  our  country  and  the  elt'ectt  of  their  repeal  correspondingly  unfa 
vorable  and  hurtful,  not  to  our  export  tratle,  but  to  all  interests  as  a 
conseipience. 

13.  Yes. 


us  to 
)untry 

IS  very 

South 

llsotho 


llesalc. 

luntry, 

Imanu- 

uum- 


™ 


TJte  Mineralized  Rubber  Company,  New  Yorl\  N.  Y. 

We  reply  brielly,  as  we  may  throw  some  light  on  certain  points.  We 
handle  at  lirst-hand  mechanical  rubber  goods,  belling,  packing,  hose, 
and  other  rubber  used  about  machinery. 

We  control  a  mill  whi<;li  we  do  not  ojjerate  in  our  own  name. 

W(^  presnnu>  that  we-  haiuUe  as  much  ex|»ort  rubber  as  any  house 
except  one  in  this  trade;  and  we  have  spared  no  exertions  ibr  many 
yciirs  past  in  obtaining  export  business,  ha\  ing  lists  printed  in  many 
dirt'erent  languages  and  agents  in  nearly  all  Spanish-American  countries 
and  in  some  British  coloines. 

Hut  despite  these  strenuous  cilbrts,  extended  over  more  than  a  do/en 
years  past,  we  have  not  been  rewarded  with  nearly  the  same  amount  of 
business  jind  )»iofit  that  an  equal  effort  would  ha\e  given  us  in  the 
home  trade. 

").  We  endeavor  to  sell  direct  to  foreign  dealers,  because  home  com 
mission  houses  buy  s(jle1y  for  price,  while  we  tiy  to  sell  a  high  class 
article.  In  Cuba,  tho  mining  paits  of  iMoxico,  Peru,  and  Chile  we  have 
lieen  aide  to  introdnct;  high  class  goods  and  get  our  price  for  them,  but 
as  a  rule  American  me(thanical  rubluu"  that  is  exported  is  tho  worst 
kind  of  rubbish,  well  calculated  to  ruin  our  trade,  and  not  nearly  as 
good  as  the  Knglish  ordScrmaii  with  which  we  como  into  couipetitiou 
ill  e\ cry  tbreiiju  miuk,ot  tUut  we  have  touched. 


372 


IJECIPKOCITY   STATEMENTS. 


M).  Our  ()iiti)iit  lias  iiicrciiscd  iil)ont  U)  ])vv  coiit. 

11.  rroscMit  cost  oi"  pioiliictioii  soiiiewliiit  siiiiiller.  Truiisportiitiou 
nitcs  coiisideiably  cheaper  (can  not  };ivo  inuportioii). 

12.  From  10  to  L'O  percent  less  and  profits  not  al)()ve  two-tiiirds  or 
tlircc-fburtlta  of  what  tliey  were  at  that  time. 

13.  In  Anstraliii  and  tlie  cape  "\ve  lind  the  r)ritisli  rnbber  goods  to  be 
decidedly  ')etter  tiian  most  American  rubber  jioods  and  on  the  wliole 
somewhat  cheaper.  We  are  strivinj;'  \ cry  hard  in  these  markets  and 
are  succeeding  somewhat  i:i  Africa,  principally  be(;ause  the  mine 
'•bosses"  are  mostly  American  and  uivc  us  (perhai)s)  ;i  sentimental 
preferen<'e. 

10.  In  beltin<>',  ])ackinsi-,  hose,  and  other  articles  made  by  machinery 
we  can  hold  our  own  with  the  forcii^'n  manufactures,  excei)t,  perhaps, 
on  articles  recpiiriiift'  a  good  deal  of  care  in  manufacture.  '^l'licn,our 
j)eople  are  too  careless  and  don't  atteiul  to  the  niceties  and  delicate 
tinish  nearly  as  well  as  the  foreign  workmen. 

In  all  articles  in  which  hand  labor  enteis  considerably  into  the  value 
we  can  not  compete  at  all  with  I'^uropean  factories.  Have  to  stand  out 
of  foreign  markets  entirely  on  sucdi  goods  in  our  line. 

1(J.  VVe  should  Judge  it  had  increased  fully  one-third  or  one-half  over 
what  it  stood  at  six  years  ago. 

17.  VVe  believe  that  doui)le  the  quantity  of  our  products  could  be 
prodiu-ed  to  what  could  be  consunuMl  in  tiie  Tnited  Stales. 

18.  The  recii»rocity  treaties  of  1S!)()  gave  tremendous  boom  to  the 
export  of  mechanical  rubber  goods  from  the  Tnited  States,  During 
the  two  or  three  years  succeeding  that  time  we  o[)ened  a  great  many 
accounts  which  are  open  to-day. 

While  not  agreeing  with  tho  political  views  of  the  statesnu>n  who 
inaugurated  reciprocity,  we  beiiexe  it  was  one  of  the  best  things  that 
was  ever  done  for  the  American  manufacturers. 

In  conclusion,  Ave  may  state  that  we  bcliiuc  that  we  stand  in  a  better 
l)osition  to  give  tiie  oi>inions  on  sonu',  of  the  [)oints  reiiuired  than  most 
nuuuifacturers,  because  our  whole  time  is  occui)ied,  and  we  keep  a  stall' 
of  over  twenty  clerks,  in  endeavoring  to  make  markets,  without  being 
troubled  with  the  numerous  details  connected  with  the  manufacture, 
which  are  solely  on  the  shoulders  of  the  mill  managers,  and  wo  can  i)os- 
sibly,  therefoie.  give  a  better  estiniat<'  of  the  dilliculties  in  the  way  of 
])lacing  a  given  amount  of  manufactures  in  our  line  than  others  not  so 
favorably  situatcil  in  that  respect. 


American  Mulilple  Fabric  Company,  Oliiciji'illc,  R.  I. 

I  believe  that  the  lepeal  of  the  rccii)roeity  legislation  of  18!)(>  and  the 
reduction  of  customs  duties  have  had  the  elfect  of  reducing  the  volume 
of  our  business  fully  L'.")  per  <'(>nt,  if  not  more,  and  bclie\e  the  reeiuict- 
ment  of  both  would  be  a  great  advantage  to  business  in  general. 


C/m.v.  A.  Schicrcn  <0  Co.,  New  Yorl: 

1.  Our  (irm  is  Olias.  A.  Schieren  &  Co.,  No.  17  Ferry  street,  New  York. 

2.  We  are  tanners  of  oak  leather,  and  manufacturers  of  leather  belt 
ing  and  laco  leather. 


(1  the 

|>liiinc 

•Mict- 


ork. 
I)elt- 


I  ♦ 


I 


IlECirROCITY   STATEMKNTS. 


.■373 


3.  Wcnjavosnldbcllinjiin  maiiySoutli  Aiiierican  llopublics,  including 
"Mexico  and  (Uiba. 

4.  ^\■c  Inn<'  made  ])ois()nal  visits  to  ^Mexico  and  (hil)a  solicitiiij"-  the 
trade,  and  met  with  fail' siicc^ess,  and  now  enjoy  a  constantly  increasing 
trade  with  these  two  countries. 

"•.  Thcie  seems  to  be  no  discrimination  or  obstacle  in  the  laws  or 
customs  in  these  two  countries  wliich  pievents  us  from  doing  l)usiness 
in  our  class  of  goods. 

().  We  k!iow  of  no  clianges  that  have  occurred  in  the  tarilV,  except; 
tliat  ('ana"  i  threatens  to  advance  \\or  duty  from  l.">  per  cent  to  L'a  per 
cent  on  on  I  L;'oods. 

7.  ^^'e  might  bi^  able  to  do  business  in  Caua^bi  by  removing  their 
duties  on  belting.  In  (lernmns  and  l''rance  the  duties  are  so  high  they 
aie  almost  i)r()hibitive. 

■S.  The  ^()I^nne  of  trade  in  our  last  current  year  ending  April,  IS!)G. 
was  about  )^;')(),(l()0. 

\K  l^rices  have  <le<'line'1  fully  2.>  per  cord  from  those  cui-rcnt  in  ISOO 
on  our  class  of  goods  in  .liis  c(mntry. 

10.  In  very  uuiuy  South  American  countries  we  can  not  get  ship]>iug 
nor  linaucial  facilities,  and  wc^  are  coaii)elIc<l  to  ship  our  goods  via  I'^ng- 
land  or  (Icrmariy;  this  is  a  gieat  diawl)ack,  because  the  cnstonu'r  will 
not  wait  the  extra  time  that  i'  takes  to  (»btaiu  our  belting,  although 
American  belting  is  conceded  to  be  superior  to  any  umde  in  Miiroi)e. 
We  can  comix'le  w  ith  I'airope  ami  fuinish  a  Huperi(a'  article  at  a  lower 
price,  and  merchants  ai'c  anxious  to  open  trade  with  us,  but  we  are 
handica])ped  in  reference  to  shipping  facilit.es  and  can  not  furiush  the 
goods  in  lime,  being  comix'lled  to  slii})  them  in  many  cases  via  ICurope, 
besides  having  to  pay  the  extra  transportation  charges,  which  are  some- 
times large. 

11.  American  leatlier  belting  is  nni\*ersally  aeknowhMlged  as  the  best 
and  most  reliable  for  all  critical  and  important  driv(!s  and  transmission 
of  power.  ICngineers  give  it  the  preference  the  world  over,  and  consid- 
ering (juality  we  furuisli  it  cl\eaper  than  our  l-hiropeaii  com])etit<)rs. 

12.  We  haveluid  very  little  e\i)erierce  with  recii)rocity  treaties  made 
in  18!K>.  At  that  tinu'  we  only  supolied  goods  through  commission 
houses  and  foreign  ag<Micies  located  in  New  York,  but  for  the  past  three 
years  we  have  i)aid  si)eeial  attention  to  oi)eiuiig  direct  connection  for 
our  foieigu  trade,  and  have  met  with  success  and  are  iiow^  introducing 
our  goods  in  several  foreign  markets. 

1,'!.  Wo  have  no  knowledge  as  to  the  principle  of  reciprocity  affecting 
our  goods  and  what  future  bearing  tarilf  legislation  may  have  on  leather 
belting.  Our  raw  material,  hides,  etc.,  are  free  of  duty,  and  we  enjoy 
the  best  and  cheai)est  oak  bark  in  the  world,  which  is  most  abundant 
as  yet  in  this  country,  so  we  have  nothing  to  fear  or  complain  of,  except 
that  we  believe  that"  it  wmII  be  wise  to  have  as  little  tariff  tinkering  as 
possible  because  it  disturbs  our  home  market,  which  after  all  is  to  lis 
the  most  valuable  and  impoi-tant,  and  no  doubt  to  any  manufacturer. 
The  untortunate  tariff  agitations  of  late  years  have  demoralized  nuiny 
industries  ok  account  of  the  uncertainty  of  things  and  have  indirectly 
injured  our  trade. 

If  it  were  possible,  and  we  believe  it  is  feasible,  to  take  the  question 
of  tarilf  out  of  politics  and  make  it  a  jiurcly  comir.ercial  cpiestion, 
establish  a  bureau  of  infornuitiou  at  Washington  furnishing  reliable 
statistics  to  our  manufacturers  so  that  they  couhl  ascertain  what  class 
ol'  goods  are  made  and  in  demaiul  in  any  country,  and  what  ]uicc  is 
paid  for  labor,  expensesj  etc.,  then  the  nuuuilacturer.s  would  be  able  to 


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RECIPROCITY    STATEMENTS. 


liguvo  exactly  Avliat  is  nceessaiy  to  compote  in  tliat  marTcet.  Willi  onr 
iin])i()VO(l  liibor  savins:  macliiiiery,^  and  witli  our  intelli;i''ent  and  skilled 
meclianicjs,  Ave  can  soon  sniMnountall  di('ti<;ultios  and  supply  the  demand 
for  j>oods.  Americau  in<»eniiity  and  Yankee  j^rit  and  push  Avill  soon 
surmount  the  obstacles  and  su])idy  the  demand  Ibr  the  f>oods. 


Lowell  Manufacturlufj  Company^  Londl,  ]\[ass. 

2.  Carpets — Tnfjrains,  Brussels,  "NViltous,  and  Axminsters. 

.'i.  Stock  (iapital,  ><2,(K)(),00();  ])crsons  employed,  about  2,000;  annual 
product,  about^  $L>,r>0(?,000. 

•1.  Market  entirely  at  home. 

5.  Practically  to  no  one. 

0.  We  luive  made  some  eP.brts  when  trade  was  very  dull  in  this 
country  with  very  little  success,  but  have  niiidi*  no  iiersistcit  etlbrts 
in  this  <lircction.  So  lonj?  as  tliere  Avas  a  duty  on  wool  sales  abroad 
Avere  simjdy  inii)ossible.  Theoretically,  a  drawback  o"  01)  ])er  cent  of 
the  duty  Avas  allowed  under  the  ]\icKiidey  bill,  i)ut  it  was  impossi- 
ble to  estimate  the  amount  exactly  and  correctly,  in  accordance  Avith 
the  Treasury  instructions,  thoui>h  some  exports  Averc  made  of  jjoods 
extremely  depressed  in  this  maiket.  No  exports  Avere  uiade  by  this 
com})auy  under  these  conditions. 

7.  I  am  not  aware  of  any  restrictious  that  will  ]u)t  ai)])ly  to  oilier 
countries  equally  Avilli  tlic  Tnited  States,  thouirh  soaie  may  exist.  1 
have  the  im])ression  that  such  restrictions  did  exist  as  applied  to  cotton 
goods  sent  from  the  United  States  to  France.  I  know  of  no  Avay  of 
rcMnoviufi'  sncli  restrictions,  except  by  removinj;'  the  restrictions  on: 
impoi'ls  into  this  country  from  those  nations. 

<S.  I  am  not  aware  of  any  changes. 

1).  ]  do  not  see  hoAv  the  reduction  or  reiin)A'al  of  duties  imposed  by 
foreign  nations  Avould  help  us,  unless  there  Averea  discriminal ion  against 
exjxu'ts  from  the  Tnited  States. 

10.  The  output  has  increased  about  10  per  cent  in  the  last  six  years, 

n.  Twenty  ])er  cent  decrease,  ])artly  owing  to  substitution  of  more 
inodern  maciiiuery,  but  more  largely  owing  to  reduction  of  duties  on 
Avool. 

12.  Selling  i»rices  compared  to  those  of  six  years  ago  are  about  20  per 
cent  less. 

];{.  There  is  practically  but  little  competition  from  foieign  mainitiU!- 
turos  in  this  nnirket.  Comi)etitn)n  is  from  donu\stie  nianuiacturess  and 
is  a  A'cry  severe  one. 

14.  Foreign  comi)etitors  liaAC  the  advanlage  chielly  in  cost  of  spin- 
ning and  prejyaratory  ])rocesses;  these  beingchielly  a  matter  of  Avages, 
Avhich  are  lower  in  Avorsted  nninnfaciuvc  in  Wurope.  They  have  also 
the  advanlag(M)f  more  extensive  and  varied  and  nearer  markets  for 
cnii)et  Avools.  Cost  of  their  machinery  also  is  less,  a  lai'ge  ]>art  of  the 
Avorsted  machineiy  used  in  this  country  being  made  abroad,  subject  to 
heavy  duties;  aiulofc(mrse  they  have  a  decided  advantage  of  acciuaint- 
p.i  ''C  Avith  the  trade  (»f  countries  to  which  Ihey  expint  goods  aecjuinMl 
by  long  experience.  This,  of  c(Uirse,  llie  manufacturers  of  the  Cniled 
Stall's  can  ac(piire  Avhenever  necessary,  iirovided  1  hey  are  not  hampered 
by  needless  iestricti<»ns,  especially  if  they  havea<'cess,  free  of  all  duty, 
to  the  full  supply  of  wool  and  other  raw  materials. 

15.  F(U'  reasons  above  given,  generally  we  can  not  compote  with  for- 


RECIPROCITY    STATEMENTS. 


375 


eifi'ii  niiumfiiotures  in  niatt«u'  of  price,  thougli  the  (luuliiy  of  most  oC  tho 
goods  iiroduced  here  is  quite  up  to  the  lbreij>ii  staudaid. 

10.  The  product  of  the  United  States  iu  carpet  manufactures  has 
increased  durin*;-  the  hist  six  years. 

17.  .'Vs  there  luis  been  vei'y  litth'  exi)ort  trade  i!i  carpets,  the  ])roduc- 
tion  of  the  United  States  is  adapted  to  its  own  consumjition,  and  v.  lien 
trade  is  in  good  (jondition  an  enormous  product  would  be  used,  and  sub- 
stantially the  full  i»rodu<'t  of  the  looms.  When  it  is  dull,  as  it  is  now, 
the  capacity  oi  the  nuichinery  is  too  great  for  the  consumption,  and 
many  looms  arc  sto]»pe<l. 

18.  Iveciprocity  tieaties  of  1890  had  no  eflect  ui»on  tlu^  carjiet  trade, 
and  I  think  very  little  on  aJiy  branch  of  trade,  though  some  causes 
o])erate<l  in  some  products,  increasing  exports  at  oi-  after  that  time,  or 
vice  versa. 

l'.>.  I  am  not  aware  that  these  treaties  had  any  elfect  upon  agricul- 
tural ])ro<lucts. 

liO.  Jf  Judiciously  api)lied  I  think  the  a])plication  of  the  reciprocnty 
prin(;iple  may  l)e  very  \aluable,  and  J  think  the  doing  away  ol"  restric- 
tions on  the  foreign  comnterce  of  the  c<<untry  must  be  greatly  for  its 
welfare. 

Much  has  been  said,  about  the  importance  of  subsidizing  liner,  of 
steamevs  to  South  An»cricaand  other  countries.  I  think  if  restrictions 
are  taken  off  of  commei'ce  tlu^  merchants  can  take  car(^  of  this  better 
than  the  United  States.  iMoreover,  the  distiuices  to  South  America 
are  so  great  that  the  steamers  merely  carrying  letters  are  of  little  eon- 
seqtienc*'.  iN early  all  of  our  dealings  witn  South  America,  and  a  large 
part  of  them  evi^n  with  I'^ngland,  are  carried  on  by  cable  messages. 

The  car])et  t'ade  reipiires  annually  nearly  ]()(>,(>()(), (100  pounds  of  car- 
])et  wool,  practically  all  of  which  's  iini)orted.  It  is  of  gr<!at  conse- 
(pience  tons  that  these  wools  should  enter  without  duty.  Jf  a  duty 
must  be  assessed  for  reveiuie,  it  should  be  a  uniform  ad  valorem  duty. 
Ad  valorem  (bities  can  be  fairly  applied  to  wools  with  very  little  risk 
of  undervaluation,  as  their  market  values  are  well  known,  and  many 
clas.ses  of  wool  are  sold  at  public  auction  in  ICurope.  Any  unif<U'm 
specific  duty  can  not  faiily  be  applied,  because  the  wools  come  in 
exceedingly  various  conditions  of  cleanness,  some  siuinking  less  than 
10  per  cent,  others  50  or  7.">  [)vv  cent. 


Fciler,  SUbcrhcri]  cO  Co.,  (Jinchinaii,  Ohio. 

2.  Wholesale  dot Iiiug  manufaelurers. 

;?.  Amount  of  capital  emi»!oye«l.  *;{,000,000 :  ninnbcr  of  persons 
em}»l()yed,  about  oOO;  vi'.Iue  of  annual  j)roduct,  .*';'.,0(H>,00(». 

4.  VVe  have  only  a  home  maiket  for  our  output. 

5.  We  do  not  sell  goods  to  any  foreign  countiy. 

().  Oui'  i)roduct  is  such  that  we  can  not  cater  to  foreign  trade, 

7.  Answer  to  No.  (i  will  cover  answer  No.  7. 

8.  Can  not  answer  this  (piestion  iutelligeiitly. 

t).  Have  no  export  trade,  therelbie  can  not  answer  this  (pu'stlon. 

10.  One-third  less. 

11.  The  wages  are  about  10  i)er  cent  less  than  they  were  six  years 
ago,  cost  of  raw  mateiial  bet  ween  LT)  and  .'{."»  percent  less,  and  trans- 
portation rates  by  hind,  in  which  only  are  we  interested,  the  .same  as 
six  years  ago. 


^i 


■  ^ 

i, 
(     ii 


376 


RECIPROCITY    STATEMENTS. 


12.  Al)ont  2.")  to  35  ])pr  cent  less  than  tliey  were  six  years  ajjo. 
1.'3.  We  <1()  not  meet  with  Jiny  coniiK'tition  iVom  iorei/^n  countries. 

14.  Can  not  answer  jntellif^ently,  not  beini;'  interested. 
IT).  Had  no  occasion  to  make  an  ellort. 

10.  It  has  decreased  considerably  on  account  of  many  foreijin  ^oods 
heinfi'  imported  into  tliis  country  takinj;'  the  p.ace  of  our  liome  manu- 
facture. 

17.  Our  product  is  ]»retty  much  absorbed  rif^ht  in  this  country.  We 
have  no  o])portunity  of  answering  this  <|uestion  more  satisfactorily, 
our  dealinj^fs  beinj;- confined  entirely  within  tlie  borders  of  the  United 
States. 

15.  Reciprocity  treaties  with  foreign  countries  ought  to  exist,  as  reci- 
]irocity  absorbs  our  suri)]us  of  maimfacture,  und  also  our  surplus  of 
iarm  ])roducts,  and  will  benefit  the  manufacturer  as  Avell  as  the  farmer. 
AVhile  you  will  i)erceiv  '  that  we  are  not  directly  interested  in  reci 
procity,  yet  indirectly  we  are.  Wo  therefore  advocate  it  as  a  inethod  of 
exchange  between  this  and  foreign  countries  of  such  merchandise  and 
niiichiuiU'y  as  we  manufacture  and  of  such  farm  products  as  we  produce 
in  suri)lus  of  our  own  wants — an  inten^hange  of  such  foreign  commodi- 
ties Avliich  we  can  not  ecjually  ]>roduce — this  being  an  advantage  to  the 
farmer,  the  maiuif  icturer,  and  the  slii])per,  as  well  as  the  wage  worker. 
We  should  have  continued  to  exteiul  the  recii)rocity  treaties  instead  of 
abolishing  them. 

li).  Answer  in  No.  18.     Favorable  to  reciprocity. 

20.  We  favor  the  application  of  the  reciprocity  i>rinciple  to  tariff  legis- 
latiiu;  and  a  law  to  authorize  the  I'resident  to  negotiate  recii)rocity 
tieaties  wherever  profitable  and  i)ossible.  We  also  i'lixuv  a  tariff  of 
sullicieut  i)ercentage  to  protect  the  American  industries  and  wage 
worker. 


J.  Spencer  Turner,  Nero  Yorl;  A".  3'. 

2.  IVfy  trade  is  juincipally  in  cotton  duck,  being  engaged  in  the  man- 
ufactun^  of  same,  and  ah",o  in  its  sale  as  commission  merchant. 

;>.  My  trade  is  not  large  with  any  foreign  countiy,  cotton  duck  not 
being  used  in  nniny  of  them.  J  send  some  to  Jai)an,  to  China,  to  South 
American  points;  also  to  i'higland  and  other  countries  in  l^urojje. 

4.  J  have  made  direct  i'tforts  by  small  consignments  of  these  goods 
to  imi)ortant  ])()ints,  such  as  Calcutta;  also  to  souu^.  i)oints  in  (,'hina 
and  Africa.     My  success  has  been  only  moderate. 

r>.  The  i)lacing  by  (Icrmany,  a  few  years  ago,  of  a  10  per  cent  tarill' 
on  these  goods  has  ruled  tliem  out  of  that  market,  Avhere  1  had  consid- 
erable trade,  the  tariff  being  sufficiently  high  to  prove  an  effe<'tivo 
end)argo.  To  France  the  nmnufactur<'r  has  never  been  able  to  send  his 
goods.  The  jtortion  which  goes  to  England  is  used  up  principally  by 
American  vessels. 

C'Otton  duck  is  used  for  the  foundation  of  lielting  and  of  fire  hose, 
also  for  making  covers,  sails,  etc.,  and  tlie  lighter  grades  for  clothing. 
It  is  strictly  an  American  ])rodiU't,  although  in  recent  years  some  man- 
ufa(  tories  have  started  in  lOnghuid  and  on  the  Continent.  The  (|uan- 
tify  made  on  the  Continent,  however,  is  not  large  enough  to  enter  into 
close  competition  w  itli  tlu^  American  make;  but  with  regard  to  England 
and  some  of  lier  ])rov:;ices  this  (!omlition  is  rai)idly  changing. 

(>.  'i'he  tarilfsof  (iernmny  amlof  the  Dominion  of  ('anada  and  Uritish 
Provinces  liavo  resulted  in  excluding  our  goods  eutirely,  and  enabling 


RECIPROCITY    STATEMENTS. 


377 


them  to  start  up  their  iiiaiiuriictorica  and  work  oil"  thoh'  surphis  j^oods 
in  {ivory  close  competition  witli  ns  I'or  the  foioi^ii  tra(h^  in  easlcrn  mar- 
kets, selling  in  bond.  In  Nova.  Scotia  they  have  gone  into  the  business 
(piite  extensively,  their  principal  trade  being  Avilli  tSoutli  Ameri(!a. 
The  goods  me  brought  to  New  York  and  ])laced  in  bend,  and  ire  sold 
here  without  contributing  anything  to  the  general  revenue  of  the 
country.  They  aie  not  held  lor  the  convenience  of  Ameri(.*an  buyers, 
but  simjjly  to  enable  the  unmufacturers  to  sell  in  competition  with  the 
American  market.  This  they  can  afford  to  do  at  a.  lower  ])ri(;e,  in  order 
to  run  their  mills  to  their  full  capacity  and  keep  the  Canadian  nuirkct  to 
themselves,  as  by  increasing  the  i)ro(Uiction  tlu;y  diminish  the  cost  of 
manufacture.  If  this  could  be  remedied,  it  would  be  a  great  advantage 
to  our  general  trade. 

7.  The  removal  or  reduction  of  the  customs  duties  in  (lermany  and 
Canada  would  ])rol)ably  add  50  ])er  cent  to  our  business. 

8.  The  volume  <»f  my  business,  as  com])ared  with  what  it  was  six 
years  ago,  is  about  the  same  in  (pumtity,  but  less  in  '  ahie. 

0.  Selling  pi-ices,  as  compared  with  tliose  of  six:  years  ago,  are  from 
.35  to  40  per  cent  less;  and  the  mills  making  the  goods  are  paying  no 
dividends,  some  of  them  even  falling  behind. 

10.  Foreign  coini)etito)'s  have  an  advantage  over  us  in  the  cost  of 
freights  to  the  forei<;n  i)orts  whei'e  sold.  The  goods  are  sent  chielly  in 
foreign  bottoms.  Many  goods  destined  for  South  America  are  shi])i)ed 
via  I'higland,  owing  to  tlie  lack  of  facilities  for  direct  comnumication; 
and  even  when  sucli  tiunlities  do  exist,  the  rate  of  freight  is  higher  than 
by  theother  method  of  shipment.  Of  course,  this,  to  the  Englislishi])i)er, 
is  an  advantage  equal  to  the  cost  of  freight  liom  here  to  England.  They 
have  another  advantage  in  the  lower  cost  of  labor,  and  their  cotton 
costs  them  no  moie  than  we  pay  for  oui's,  as  it  can  be  landed  in  Liver- 
I)ool  or  Manchester  at  the  same  price  thaij  it  can  in  the  eastern  i)oints 
of  this  country,  sometinu's  even  for  less. 

11.  Itwouhl  be  very  dithcult  to  c»nnpete  with  foreign  merchants  if 
the  goods  Av ere  ma<le  in  (piantities  to  give  steady  employment  to  any 
large  manufactories  on  the  other  side. 

IL*.  The  genei-al  elfect  of  the  reciprocity  treaties  made  in  LSOO  were 
very  favoralde  to  our  tra;le  and  the  export  trade  generally.  The  eti'ect 
of  tlu'ii-  rejieal  was  to  leduce  our  sales ;  but  1  would  not  favor  reciprocity 
treaties  with  European  countries,  or  Avith  any  country  where  manufac- 
tnringisextensively  engaged  in.  1  think  very  highly  of  it  with  refereuce 
to  all  countiies  on  the  Western  Continent. 

l.'i.  This  is  answered  above. 


J  i: 


^f(trshall  ((•  (V).,  ShrcicNhurif  Mills,  Keaniy,  K.  J. 

2.  Linen  threads,  yarns,  and  twine. 

3.  $500,(»<IOcapital,*5(IO,000  borrowed.  People  emidoyed,  7S8.  Value 
of  annual  product,  sS()0,000, 

'\.  All  our  product  is  sold  in  the  home  nuiiket. 

^'>.  We  have  nnule  no  effort  to  get  forcMgn  trade,  as  the  wages  ])aid 
herc^  Avould  ])reveid  us  coinpetnig  with  any  prospect  of  success  wilh 
the  mills  of  the  L'luleil  Kingdom,  France,  Italy,  etc. 

7.  No. 

8.  We  Inn*'  not  followed  the  changes  made  in  foreign  tariffs,  as  we 
are  only  doing  a  domeslii',  trade. 


378 


RECIPROCITY    STATEMENTS. 


{>.  Ko  (lift'tTPuco,  directly,  but  would  ul'f'ect  iis  tlirongh  our  customers. 

11.  Cost  of  ])i'odu('tion  abovit  llic,  siinic.  Tlicrc  was  ji  loss  iu  reduciug 
the  workiii<;'  hours  per  w<»ek  Iroiii  57A  to  55,  which  has  been  made  ui> 
by  other  small  dillerences. 

12.  Linen  threads  are  sold  on  the  same  list,  at  the  same  discounts,  as 
six  j-ears  a,no.    Yarns  and  twines  arc  about  l'>  i)er  cent  cheaper. 

l;».  There  is  heavy  comi)etition  in  the  home  nnirket  in  threads  from 
Scotland  and  Ireland  and  in  yains  from  Italy. 

14.  We  ])ay  from  two  to  hve  times  the  wages  paid  by  foreign  manu- 
facturers, and  the  foreign  spinner  has  great  advantages  in  cheaper  null 
furnishings  (coal,  dyestulV,  gill  i)ins,  banding,  etc). 

15.  The  goods  ^Te  produce  are  second  to  none,  but  we  are  beaten  in 
]n'ice  by  the  im])ortei,  who  has  a  tremendous  advantage  in  low-priced 
labor,  and  very  often  undervalues  his  goods  in  the  custom-house. 
This  undervalnation  is  getting  to  be  a  very  serious  matter,  as  it  is  get- 
ting worse  every  year. 

1(5.  Tin',  quantity  of  linen  thread  used  has  increased,  but  the  increase 
has  all  been  in  imported  goods. 

17.  The  linen  mills  in  tlui  United  States  could  probably  about  i)ro- 
duce  the  thread  used  here  (without  any  export). 

IS.  The  recii)rocity  treaties  had  only  an  indirect  effect  on  us  through 
our  customeis. 

20.  We  do,  because;  wo  think  it  would  help  the  general  trade  of  the 
country. 

21.  Linen  thread  and  yarn  have  never  been  protected  to  the  same 
extent  as  other  textiles,  h'or  instance,  the  duty  on  cotton  is  heavier 
than  tiie  duty  on  linen,  and  yet  the  cost  of  spinning  linen  is  six  times 
niore  than  the  same  lineness  of  cotton.  The  result  is  that  the  linen 
trade  has  never  been  in  a  healthy  condition,  as  the  importer  has  always 
had  the  advantage. 


Catliu  ((•  Co.,  New  YorJc  City. 

2.  Southern  cotton  goods  department.  Mills  located  in  \'irginia, 
North  Carolina,  South  Caiolina,  Alabama,  and  Tennessee. 

3.  IJia/il,  Veneznela,  Argentine  l{ei)ublic,  Arabia,  Africa,  Mada- 
gascar. 

4.  By  corres])ondence,  samples,  and  negotiations  with  representatives 
of  foreign  houses  in  New  York  City  and  !>oston. 

5.  The  advance  of  taiilf  in  foreign  countries  by  virtue  of  the  abro- 
gation of  the  re('i])rocity  agreements,  notably  with  Brazil. 

Tiici  writer  was  at  tliat  time  and  is  a  stockholder  in  Sonlhern  mills 
nmking  cotton  sheeting,  drills,  duck,  etc. 

Witiiin  one  year  of  tin;  tinni  Mr.  Blaine  had  arranged  with  Brazil 
under  reciprocity  agreenients,  the  orders  from  that  country  were  sulli- 
cient  to  run  these  mills  in  the  South  for  six  months  iu  advance  of  the 
l)roduction,  night  ai>d  day. 

After  the  abrogation  tlie  trade  fell  off  and  is  now  scarcely  worth  men 
tiotiing — an  order  now  and  then. 

Of  course,  u  does  not  recpiire  very  much  commercial  knowledge  to  see 
at  a  glance  that  any  indi\idual  firm  or  nation  having  an  advantage  of  25 
])er  cent  on  cotton  goods,  as  in  the  case  of  i'.razil  with  flu^  imi)ortationa 
from  the  United  States,  over  any  other  individual  firm  or  nation  that 
their  tra<le  can  be  largely  increased.    In  other  words,  the  cotton  nuiuu- 


Reciprocity  8Tatements. 


379 


fiicturers  r<"  tlic  ITiiiiod  States,  having  the  advantage  of  an  average 
of  over  25  i)er  cent  below  any  other  nation,  sueh  as  England,  (Jerniany, 
Jielginni,  et(!.,  the  Aineriean  goods  of  eourso  take  tlie  ja-eeedeuce  in  the 
Brazilian  market,  almost  to  the  exclusion  of  the  other  goods. 

The  testimony  of  the  New  York  merchants  which  che  writer  delivered 
to  ]\lr.  James  (J.  Blaine,  and  which  was  irrespective  of  party,  showed 
their  views  and  desires  as  to  retnprocity  agreements. 

12,  13.  Am  in  favor  of  reciprocity  agreements  with  the  various  for- 
eign countries  Avhen  it  can  be  arranged,  believing  it  will  greatly 
increase  the  sale  nnd  shii>ment  of  American  products. 

By  reference  to  the  official  returns  of  the  Treasury  Department,  the 
exports  of  American  cotttms  toBra/.ilin  18!)0-<)1  and  lSl)l-<)2  will  show 
an  increase  in  one  year  after  reciprocity  was  arranged  of  about  4,()(K),(K)0 
yards  a  one— that  is,  from  (>,00(),(I00  to  10,(»0(),(>0()— and  increased  in  the 
years  following  until  the  change  in  reciprocity.  This  will  readily  show 
the  advantages  gained  by  reciprocity. 


wrr^mmj^mm 


IKON  AND  STEEL. 


CIKOlJLAIt  OF  INQUIKY  TO  jMANUI-'AdTUREllS. 

OOMMITTEK   ON    WAYS   AND   MEANS,  ' 

IIOUSK   OF    IkKI'RKSKNTATIVES, 
Washiuutoii,  I).  (\,  March  /,  isOd. 

Rtt?  :  111  order  that  tlioy  may  give  more  intelligent  consideration  to 
])eMdiii{;  Mild  ])roj)os('d  le<;islation,  tlie  siibc()niiiiittc(>  of  the  Coinmittee 
on  Ways  and  Means  of  the  J  louse  of  Jtepresentatives  in  charge  of  bills 
relating  to  reci])rocity  arrangements  and  eommerciial  treaties  would  be 
greatly  obliged  if  you  would  forward  them,  al  your  earliest  conven- 
ience, your  views  and  suggestions,  and  such  iniormatiou  as  you  are 
able  to  furnish  upon  the  following  ]»oints,  namely: 

1.  Give  full  name  and  address  of  linn  or  company. 

2.  Lines  olinanufael  lire. 

3.  Amount  of  capital,  number  of  persons  ein])loyed,  ami  value  of 
annual  product. 

4.  J)o  you  lind  your  market  at  home  w  abroad;  and  if  both,  in  what 
luojiortiou  ? 

5.  J)o  y(m  sell  direct  to  foreign  dealers  or  through  commission  housesf 
<).  Have  you  made  any  direct  elfort  to  extend  your  Ibreigii  trade; 

and  if  so,  by  Avhat  means,  with  what  success,  ami  in  what  countries? 

7.  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  f)f  any  foreign  (^rnntry  that  restrict  or  prevent  the 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  meaus  by 
Avhich  they  may  be  removed  t 

•S.  What  changes  have  recently  occurred  in  the  taritfs  of  Ibreigii 
countries  so  far  as  they  relate  to  your  lines  of  manufacture? 

1).  Jlowfar  would  the  removal  or  reduction  of  the  (!ust(»ms  duties 
iini)osed  by  foreign  nations  upon  the  merchaiulise  in  which  you  deal  aid 
in  the  extension  ol"  your  export  trade? 

10.  What  is  the  output  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  I  low  does  the  ju'esent  cost  of  production  compare  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  laud! 

1-.  llow  do  present  selling  prices  eom})are  with  those  of  six  ye.ars 
ago? 

13.  "What  com]>etiti()n  do  you  meet  with  from  Ibreign  manufacturers, 
and  in  what  markets? 

14.  What  advantages  do  your  foreign  coiniietitors  h.ave  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  fon'ign 
markets? 

15.  To  what  extent  can  you  comi»ete  with  foreign  manufacturers  iu 
quality  and  prices? 

380 


,  JSDG. 
ntioii  to 
iimiittoo 
Li  of  bills 
vould  bo 

(•(HlVCll- 

yoii  jiie 


valiio  oi 

in  what 

bouses f 

trade; 

■rics  ? 

bnvs  or 

vent  tl  10, 

a  us  by 

Ibroiyn 

duties 
deal  aid 

that  of 

that  of 
ransi)or- 

x  years 

eturors, 

^or  you 
tbreii^u 

urers  iu 


KECIl'UOCITY   STATEMENTS. 


381 


10.  rias  the  total  i>rodiu't  of  the  I'tiited  States  in  your  line  of  manu- 
tiicturo  inerojjfyd  or  doereased  during-  the  last  six  years? 

17.  What  proportion  of  the  total  juesent  and  possilde  ontpnt  in  j'our 
lines  of  nianulacture  in  the  United  States  can  bo  absorbed  by  the 
doniestie  market;  and  what  would  be  your  estimate  of  the  natural  sur- 
])lns  for  export  if  all  niaiiufaetnrers  in  your  lines  were  prodncinj;-  to 
their  full  capacity  I  (The  jturpose  of  this  incpiiry  is  to  secure  as  accurate 
an  estimate  as  ]K)ssible  of  the  necessity  for  ueAV  foreign  markets  to  the 
manufacturers  of  the  United  States.) 

18.  Was  the  general  ellect  of  the  reciprocity  treaties  made  in  1890 
favorable  or  unfavorable  to  the  export  trade  of  the  United  States,  and 
what  was  the  ellect  of  their  repeaU? 

11).  What  was  the  olTect  ui)on  farm  products  ])articularly  ? 

(If  your  replies  to  in(iuiries  17  aiul  18  are  based  upon  actual  exi»eri- 
ence,  jdease  give  details  as  fully  as  possible.) 

20.  Do  you  favor  the  application  of  the  reciiu'ocity  principle  to  future 
tariff  legislation,  and  the  enactment  of  a  general  law  anthori/ing  the 
Tresident  to  negotiate  recii)rocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible? 

These  incpiiries  have  been  forwarded  to  several  hundred  persons, 
lirms,  and  cor[)orations  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  replies 
are  intended  for  publication  with  a  report  which  the  Committee  on 
Ways  and  iMeans  will  make  to  the  House  of  Kei)rosentatives;  but,  if 
so  desired,  any  information  received  will  be  regarded  as  conlidential. 
All  values  should  be  exjiressed  in  United  States  gold,  and  all  quantities 
in  our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  tlu^so  subjects 
that  is  not  called  for  by  the  above  in(|uiries  will  be  appreciated. 
1  am,  sir,  your  obedient  servant, 

A.  J.  Hopkins,  Chairman. 


KEPLIES. 


TJtc  lir  Nail  Companii,  Clevdand,  Ohio. 

2.  Manufacturers  of  steel  rods,  wire,  nails,  rivets,  tacks,  etc. 

3.  Have  dealt  but  little  with  any  foreign  country. 

4.  No  direct  etfort  other  than  having  advertised  in  Spaidsh  ])apeis 
some,  with  not  nuich  success.  What  goods  we  have  e.\])orted  have 
been,  through  exi)ort  agents  in  Now  York,  to  South  American  countries. 

T).  We  are  not;  but  no  doubt  there  are  obstacles  iu  the  way  of  duties, 
as  in  (lermauy. 
(i.  Do  not  know  of  changes. 

7.  Can  not  answer;  do  not  know. 

8.  Notworthcom])aring. 
0.  Lower. 

10.  A  very  groat  advantage  in  transportation  to  South  America. 

11.  We  can  compete  in  (pudity  and  price  if  we  have  same  low 
trausi)()rtation, 

IL*.  Can  not  answer  from  ex])erieTU'e,  but  am  satisfied  that  reciprocity 
treaties  oii  articles  not  made  in  this  country  would  be  of  great  benefit. 

\'.\.  We  do.  The  gi^eatost  benetit  w(mld  accrue  to  the  manufacturers 
of  this  countiy  if  this  Covernment  would  subsidize  steamships  to 
carry  our  goods  to  loreigu  countries,  and  especially  to  South  America. 


K       1 


n 

I  L 


r.    9 

isi     « 


1 


■^i"* 


:582 


UECirUOCITY    STATKMKNTS. 


ii 


Wo  should  hiivt'  a  istoinner  a  week  pniij;'  to  South  AnuMica  at-  leaKt. 
As  it  is  now  w<;  ship  IVom  tiiis  country  to  Antwerp  an«l  reship  IVoni 
there  to  South  Auun'iea,  hcciiusc!  tliat  is  tin;  c.heiipest/  route  to(hiy. 
This  (u«ler  of  t'liuji's  shcuihl  he  cliaujied.  To  aid  AnuMictiin  industries 
iit  least  tlu'se  two  thinjjs  shouM  ho  <h)ne:  (1)  lioeipiocity  treaties, 
(2)  Sul)sidizo  Anieriean  boats  sulliciently  to  carry  j^oods  f'roui  the  United 
States  to  Ibreigu  countries. 


H(ft(hnn  Locomotii'c  Works,  I'ltiUuhlphid. 

1.  liurnlunu,  Wilhanis  &  Co.,  proprietors  Ijuldwin  TiO(!onu)tive  Works, 
rhihulel[»hia,  Pa. 

2.  ljOconu)tivo  enin'ines. 

3.  ('apital,  $l),(HM>,(KK).  Number  of  persons  employed  (when  working 
to  full  capacity),  5,500.     Value  of  annual  product,  $8,715,000. 

4.  Our  market  is  both  at  houui  and  abroad.  Tiie  foUowinj;'  table 
shows  the  i)rodu(;t  in  number  of  locomotives  delivered  both  to  the 
domestic  and  foreign  nuirket  each  year  for  the  past  ten  years: 


Year. 

Domestic. 

1880 

508 
007 
014 
010 

802 

1887 

1888 

188U 

1890 

ForoiKii. 


42 

40 

93 

211 

144 


Totul. 


II 


Year. 


550 
653 
737 
827 
<J4G 


1891 
18!»2 
1893 
1804 
1805 


Doniostic. 
609 

Fori'igu. 

290 

601 

127 

610 

102 

181 

132 

250 

151 

ToUl. 


809 
731 
772 
313 
401 


5.  £^11  chiefly  direct  to  foreign  customers;  only  to  a  small  extent, 
through  commission  houses  iu  the  United  States. 

6.  Have  made  direct  efforts  to  extend  our  foreign  trade  by  members 
and  re])resentatives  of  our  firm  traveling  in  foreign  countries,  by  estab- 
lishing agencies  therein,  and  by  keeping  engineers  an<l  mechanics  in 
the  countries  where  we  sell  locomotives.  The  success  is  indicated  iu 
the  statement  nnder  the  fourth  interrogatory.  The  (^ountrieK  with 
which  wo  have  done  business  are  ^Mexico,  the  SVest  Indies,  the  Central 
and  South  American  States,  Sandwich  Islands,  Australia,  New  Zealand, 
Sweden  and  Norway,  Kussia,  South  Africa,  and  .Ja])an. 

7.  The  only  discrimination  of  whicdi  we  are  aware  is  the  imposition  of 
import  duties  in  some  countries,  and  which  we  presume  may  be  removed 
by  suitable  commercial  treaties. 

8.  The  only  changes  of  which  we  are  aware  are  the  imposition  of 
import  duties. 

0.  Removal  or  reduction  of  customs  duties  imposed  by  foreign  nations 
would  largely  aidinextendingourbusiness.  Theduties  imposed  by  some 
Governments — notably  that  of  Canada — are  essentially  prohibitory. 

10.  What  is  the  outi)ut  of  your  establishment  compared  with  that  of 
six  years  ago?    See  under  interrogatory  4. 

11.  The  cost  of  production  is  about  the  same  now  as  it  was  six  years 
ago,  as,  all  things  considered,  material,  wages,  and  transportation  are 
less,  but  reductions  in  these  respects  are  otfset  by  increased  general 
expenses  due  to  the  smaller  output  at  this  time. 

12.  llow  do  i)resent  selling  prices  compare  with  tliose  of  six  years 
ago?    About  the  same. 

i;3.  We  meet  the  oom|)etitiou  of  Engllth,  French,  CJermaUj  and  Aus- 


it  least, 
lip  iVoin 
t<)<lay. 
(liistru's 
li'Ciitics. 
i  United 


i  Works. 


working 

u}i  table 
I   to  the 


n. 

Total. 

)0 

800 

27 

7;u 

12 

772 

J2 

:ii» 

n 

4Ul 

11  extent. 

iieinbers 
y  estab- 
mics  in 
ated  in 
es  with 
Central 
ealand, 

iition  of 
enioved 

;ition  of 

nations 
)y  some 
tory. 
that  of 

X  years 
;ion  are 
general 

ycai-s 

id  Aus- 


KKlll'liOCITY    STATEMENTS. 


383 


triaii  nianuliK'tiinMs  in  Enssi;  .Tai)aii,  Xorway,  Australia,  the  West 
Indies,  and  Houth  .Viiierica. 

11.  Onr  foreign  eompetitors  have  advantages  in  lower  (;ost  of  mate- 
rials, wages,  and  ocean  transiKdtation. 

1").  We  (compete  with  foreign  niannfaefcnrers  in  (luality,  American 
locomotives  being  pi-eferred  in  some  eonnti'ies.  We  compete  also  in 
pri('«',  the  American  jtlan  of  locomotive  and  American  methods  of  ])ro- 
duction  being  more  economical. 

U).  The  total  product  of  the  United  States  in  onr  lincof  mannfaiitnre 
during  the  last  six  years  has  decreased,  as  is  shown  by  the  foUowing 
table: 


Voor. 


1800 
I«91 
1802 
18i);i 
1804 
1805 


Niimlior  !  NuiiilM>r 
of  works    of  loco- 
rt^jHirt-   i  iiiotivfrt 
inir.  built. 


ir. 

2, 300 

i;j 

2,  1C5 

111 

2,012 

14 

2.011 

10 

()05  1 

111 

1,10'J 

AvoniEo 
for  ciicli 
works. 


15;i 
IfiO 
154 
14;i 
<-,0 
85 


Sourco  of  iiiloriiiatioii. 


Kailroiul  Ga/.etto,  1805,  i>ftgo  8. 
Do. 

1)0. 

Do. 
Do. 
Kailroitil 


(Jazi'ttr,  1805,  pn(;o  858. 


17.  If  the  entire  country  were  prosperous  and  all  interests  emi)loyed, 
theouti>nt  of  all  American  l(»c(»motive  works  could  be  taken  by  domes- 
tic customers.  Such  a  condition,  however,  never  has  existed  for  more 
than  a  year  or  two  at  a  time.  Only  once  in  the  last  twenty-live  years, 
vi/,  about  fifteen  years  ago,  have  all  the  locomotive  builders  been  ''uUy 
employed. 

18.  The  general  efVect  of  the  recijirocity  treaty  was  I'avorable;  the 
rei)eal  of  same  was  injurious  to  our  business, 

20.  We  lavor  the  ai)i)lication  of  the  reciprocity  i)riuciple  to  future 
tariff  legislatioi'  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reeiiu'ocity  treaties  with  both  Euroi)ean  and 
American  nations,  so  far  as  possible. 


Central  Iron  Worls,  ]I((rrisbHr(/,  Pa, 

2.  Iron  and  steel  boiler  plates  and  universal  plates  for  structural  work. 
^5.  Capital,  $o(H),000;  oiiO  persons  employed;  value  of  the  product, 
$1,20(),(»0(). 

4.  Market  at  luune. 

5.  Do  not  sell  to  foreign  dealers. 
(J.  No. 

7.  No. 

8.  None. 

y.  Not  any. 

10.  About  double. 

11.  Lower, 

12.  Comparatively,  as  to  cost,  about  the  same. 

13.  None. 

14.  Do  not  have  foreign  competitors, 

15.  Our  prices  must  be  ke[)t  where  they  will  not  allovv  foreign  prod- 
ucts to  come  in. 

1(5.  Increased. 


WWi 


384 


KIX'IPUOCITY    STATKMKNTS. 


17.  Oiir  (lomostic  iiiiukots  will  not  consimic  all  pioducL  Jiiid  ought  to 
have  Ibrci;;!!  niiiikets  to  jio  to.  .     *  ^ 

18,  No  result  as  to  t)Mr  i)ro(In('t. 
1!(.  Don't  know;  no  experienec. 
LM).  Vesj  in  favor. 


Mdri/hoid  Stcil  ('o)iiptiiii/,  iSixo-rotrs  Point,  Mil. 

2.  IM^'  iron,  steel  rails,  and  billets;  en/^iiu's,  boilers,  and  heavy  ma- 
chinery; bridjjes,  rools,  buildinjL;s,  viaducts,  and  otlu'r  structures  of  iron 
and  steel;  iron  and  steel  steam  and  sail inj;' vessels. 

'i.  Capital,  >'1,0(»0,()(>(>.  IMant,  over  ><.""),0()0,()00.  When  in  full  opera- 
tion em[)Ioy  b(!tw(^en  .'»,()()()  and  4,<K)(>  persons.  Approximate  value  cf 
annual  product,  if  in  full  operation,  610, 000, ()()(). 

4.  Market,  at  i»resent,  this  country.  Works,  however,  are  located 
directly  on  tide  water.  ICxports  thus  far  limited  to  sunill  (puintities  of 
steel  i-ails,  nuichinery,  ami  structural  material  t()  the  West  indies  and 
youth  America. 

T).   Have  g'enerally  sold  through  domestic  bouses. 

(5.  W(^  have  made  diie(,'t  effort  by  (()rres[)ou(lence  and  representation 
to  extend  our  foreign  trade  in  Central  and  'South  America  and  West 
Indies  with  meager  success. 

7.  Are  not  awar(i  of  such  <liscriminations. 

8.  Only  aware  of  those  resulting  from  the  abrogation  of  reciprocity 
treaties. 

i).  The  remo\  al  or  reduction  of  customs  duties  imi)osed  by  foreign 
nations  would  aid  greatly  in  the  extension  of  our  export  trade,  and  the 
o])ening  up  of  such  trade  channels  would  result  in  the  establislanent  of 
additional  tiansportation  facilities. 

10.  At  present  our  works  are  only  in  partial  operation.  The  plant 
was  eommeiuH'd  in  1S87  and  comphited  in  ISOL',  being  the  most  modern 
of  its  character  in  this  country.  The  depression  commencing  in  181)13 
and  18!)."}  caused  the  susi)ension  of  operations. 

11.  The  cost  of  production  at  the  ]»resent  tinu^  in  this  locality  is  a 
little  less  than  six  years  ago,  owing  chieily  to  raw  nuiterial  being  about 
10  per  (;ent  cheai)er.     Wages  are  practically  the  same  as  six  years  ago. 

lli.  Very  much  lower. 

13.  Practically  none  in  home  market,  but  Europeans  control  the  for- 
eign markets. 

11.  The  ))rincipal  advantage  of  our  foreign  comi)etitors  lies  in  the 
cost  of  labor  and  transi)ortation.  In  the  former  from  10  tooO  percent, 
according  to  the  i)i'oportion  of  labor  in  the  total  cost  of  the  manufac- 
tured article,  in  certain  lines  we  can  meet  ihiro])ean  ])riees  f.  o.  b.  In 
otiiers — tor  example,  shipbuilding — our  costs  would  be  iVom  15  to  .'50  per 
cent  higher.  The  ability  to  secure  return  cargoes  for  vessels  carrying 
out  their  manufactured  products  gives  our  foreign  competitors  very 
great  advantage  over  us. 

15.  We  can  compete  in  quality,  but,  as  noted  above,  are  at  greater  or 
less  disadvantage  in  respect  to  labor  cost,  as  that  element  forms  a 
greater  or  less  |)roportion  of  the  total  nninufacturiug  cost. 

10.  Ver}'  greatly  increased. 

17.  The  ]»resent  manufacturing  cai)acity  has  never  been  tested  by 
the  demiinds  ol  the  country  under  normal  conditions.  In  view,  thero- 
fore,  of  the  great  changes,  both  in  supi)ly  and  proljable  requirements, 


K ICCIPlt OCIT Y    STA T E M EN T8. 


385 


that  liiivo  taken  pliico  widiiii  llio  past  few  years,  Ave  do  not  undertake 
to  give  iinythinj;'  worMiy  of  heiiifj  (jailed  a  (tlose  estimate  of  these  rela- 
ti.  lis.  If,  liowever,  all  the  well  located  and  ecjnipped  iion  and  steel 
works  in  the  (country  were  to  <'ontiiiue  in  fulloperatioii  for  an  extended 
period,  it  would  seem  jnoh.ihle  that  at  least  from  15  to  -o  per  cent  of 
the  output  would  have  to  be  disposed  of  in  foreij;n  markets.  This 
assumes  that  ratio  of  producing  ca]>acity  to  average  domestic  consump- 
tion will  not  be  less  than  at  present. 

IS.  We  consider  very  uiifa"orable;  greatly  diminishing  the  oppor- 
tunity for  (^vtending  our  foreign  trade. 

11).  We  believe  the  elVeet  has  been  to  nniterially  diuiinish  tiio  export 
of  farm  ))rodu(!ts. 

20.  Yes;  as  a  sound  business  proposition. 


I  ■II 


■:i. 


IP 
iffli 


(^amhria  Iron  Cnmpaiiyy  I'hUndelph'ut. 

2.  TJiu^s  of  numufacture:  Steel  rails,  blooms,  billets,  slabs,  beams, 
angk's,  channels,  bars,  axles,  forgings,  merchant  steel,  agricultural- 
inii>lement  steel,  etc. 

.">.  Amount  of  capital,  *  7, 074,550;  number  of  i)ersons  emph\yed,  about 
7,000;  ami  value  of  annual  product — value  of  sliipments  in  last  liscal 
year,  $7,001,045. 

4.  Do  you  lind  your  market  at  home  or  abroad;  and  if  both,  in  what 
jn'oportioM  I     Principally  within  the  United  States. 

5.  J)o  you  sell  direct  to  foreign  dealers  or  through  commissi(m  houses? 
A  iiy  foreign  sales  are  made  through  rei)reseiitatives  in  tln^  United  States. 

(5.  1  lave  you  ma<le  any  direct  effort  to  extend  your  foreign  trade  1  Not 
to  any  extent. 

7.  Ar<^  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  prevent  the 
ext(nision  of  your  trade?    No. 

8.  What  changes  have  recently  occurred  in  the  tariffs  of  foreign 
countries  so  far  as  they  relate  to  your  lines  of  luaiuifacture!  Do  not 
know. 

9.  TTow  far  would  the  removal  or  reduction  of  the  customs  duties 
imposed  by  foreign  nations  i  o,;n  the  merchandise  in  which  you  deal 
aid  in  the  extension  of  your  export  trade?    Not  very  much. 

10.  What  is  the  outi)ut  of  your  establishment  compared  with  that  of 
six  years  ago  ?  Six  years  ago  the  product  was  shortened  by  the  .lohns- 
town  Hood;  shipments  for  ISOO,  205,33(>  gross  tons;  shipments  for  last 
liscal  year,  L*70,5Ui  gross  tons.  Shipments  could  be  increased  50  per 
<'<'nt  if  busi.iess  conlidence  could  be  restored  by  a  return  to  the  former 
American  ixtlicy  of  properly  ])rotecting  home  industries ;  also,  by  estab- 
lishing a  fixed  fiimncial  i)olicy  in  ac(!ord  with  the  rest. of  the  world,  ami 
by  an  absence  of  rumors  of  foreign  war — complications  which  obstruct 
the  How  of  foreign  credit. 

1 1 .  How  does  the  present  cost  of  production  compare  with  that  of  six 
years  ago,  including  wages,  the  cost  of  rsiw  material,  and  transportation 
rates  by  sea  and  land  ?  Costs  have  been  reduced  by  increasing  product; 
wages  are  somewhat  less  than  six  years  ago,  as  the  selling  prices  of  our 
l)roducts  have  been  so  much  reduced. 

VI.  How  do  present  selling  prices  compare  with  those  of  six  years 
agof    The  price  of  rails,  our  principal  product,  averaged  us  in  1890 
about  $35;  they  are  to-day  $28. 
II.  Eep.  22G3 25 


386 


RECIPROCITY    STATEMENTS. 


l.'i.  What  coinpctitioii  do  you  iiioet  witli  from  foreign  maimfactnrers, 
aii.l  in  what  nnirlvctsf  Owinii'  lothe  much  lowj'r  Maf^es  ])aid  in  Euroi)e 
in  all  branches  O:  itecl  niannractnie,  from  the  mining  of  the  ore  and  (!oal 
n])  through  all  the  inter)nediate  stages,  foreign  steel  products  can  be  sent 
to  all  American  ])orts  outside  of  tlie  United  States  at  S(n'eral  dollars 
]ier  ton  below  what  it  would  cost  us  to  do,  and  with  the  present  low 
dnties  they  can  also  compete  with  us  at  such  United  States  ports  as 
distance  nuikes  heavy  freight  charges  for  us.  The  transportation  com- 
panies, therefore,  lose  this  business,  as  well  as  ourselves,  owing  to  the 
low  taritt's. 

14.  VViiat  advantages  do  your  foreign  corai)etitors  have  over  you  in 
the  cost  of  mannfacture  ami  in  transportation  duirges  to  foreign  mar- 
kets? See  above  as  to  manufacture.  As  to  transportation  the  ocean 
freights  run  com])nratively  empty  this  way,  and  heavy  steel  ])roduct8 
can,  therefore,  fre([uently  bo  carried  to  American  [)orts  as  ballast  at  ii 
nominal  or  no  freight. 

15.  To  what  extent  can  you  comi»ete  with  foreign  manufacturers  in 
qujility  and  ])ricesf    Little  or  nothing,  owing  to  reasons  above  stated. 

W).  Has  the  total  i)ro<luct  of  the  United  States  in  your  line  vt'  maiui- 
facture  increased  or  decreased  during  the  last  six  years?  A^'ery  much 
increased  in  tonnage,  but  pvicos  much  reduced. 

17.  What  ])roi)ortion  of  the  total  i)resentand  possible  output  iji  your 
lines  of  nmnufacture  in  the  United  States  can  be  absorbed  by  thedonu's 
tic  market,  and  what  would  be  your  estimate  of  the  natural  surplus  for 
export  ii  all  manufacturers  in  your  line  were  inodueing  to  their  full 
capacity*?  Productts  in  our  line  could  be  increased  unlimitedly,  under 
]U'oper  con<litions  for  commercial  i)ros])crity,  and  the  absorption  by 
home  t  nterprisesir,  also  almost  unlimited,  depend:ng  on  the  same  con- 
ditions. 

l.S.  Wrs^  tht  general  effect  of  the  reciprocity  treaties  made  in  1890 
favorable  or  unfavorable  to  the  export  trade  of  the  United  States? 
Very  favorable  lor  such  export  business  as  we  had.  Wo  were  cx])orting 
sou'e  light  rails  to  West  Indian  and  South  American  i)ort8,  which  the 
abrogation  of  reciprocal  duties  stopped. 

2(1.  Do  you  I'avor  the  application  of  the  recii)rocity  principle  to  future 
tariff  legislation  and  the  enactment  of  a  general  law  authorizing  the 
rresident  to  negotiate  reciprocity  treaties  with  both  Eurojiean  and 
American  nations  so  far  as  i)ossible?  Yes;  i)robauly  with  American 
and  eastern  Asian  nations.  With  ICurojx'an  nations  it  might  be  inju- 
rious, as  it  might  admit  such  imjwits  as  would  harm  us. 


The  Patifiaic  Rolling  Mill  Company,  Paiemon,  .N,  J, 

1.  The  Passaic  liolling  i\!ill  C(mjpany,  ratersor.  N.,1. 

2.  Manufacturers  of  strnctural  steel  and  iron  and  bridge  buildeis. 

.'?.  One  million  dollars  employed  capital;    1,000  ]>ersons  employed; 
$li,000,000  annual  product, 
•i.  For  the  past  two  years  entirely  at  liome. 
n.  Through  commission  houses. 
0.  Yes;  by  agents  in  Mexico  and  the  West  Indies. 

7.  Only  in  tin-  matter  of  increased  customs  dnties. 

8.  Very  large  increase  in  the  rates  to  th«^  West  Indies. 

'•>.  It  wou'd  restore  to  «is  a  large  bnsines.;  (  njoyed  a  few  years  ago. 
10.  liy  iiuMcascd   facilities  our  tonnage  is  increased,  bi;(   by  lower 
prices  the  value  remains  about  the  same. 


RECIPROCITY   STATEMENT^.. 


387 


11.  I  tbiiik  all  pre>seiit  costs  iiicliuled,  everything"  is  about  oO  per  cent 
less  than  six  years  ago, 

IL'.  About  no  i»er  cent  less. 

l.'J.  I'riii(!ip5'-ily  throngli  (lennan  nianutatturer:^  in  the  West  Indies 
and  Central  American  markets. 

14.  Lower  wages  and  lower  transportation  charges, 

J5.  By  reji-son  of  better  designs  and  more  economical  use  (d' material 
we  can  overfjome  a  ditlerence  of  25  per  cent  in  the  cost  of  material  used 
in  construction. 

10.  1  think  it  has  largely  incrcsed. 

17.  My  judgment  is  tluit  the  facilities  for  production  in  our  line  of 
business  are  such  as  to  juoduce  double  the  probable  consumption,  when 
all  manufacturers  in  our  line  are  [troduciiig  to  their  ftdl  capacity.  This 
would  leave,  of  course,  50i)er  cent  available  ft>r  e.\])ort.  It  is  theprinci- 
|)al  cause  of  trouble  among  American  manufacturers  that  they  increase 
facilities  f(  •  production  more  riti)idly  than  consuini)tion  demands,  heiu;e 
l>rices  are  .ept  dov  ii  her(^  fi'om  natural  competition,  even"  when  the 
danger  of  ioveign  comi)etition  tiirough  unduly  low  duties  does  notexist. 

15.  IO\'(;ellent,  an.^  the  repeal  disastrous. 
20.  By  all  means. 


1  ii 


ers. 
I(>yed ; 


N'ortlwcutcni  Malleable  Iron  Compun,;,  Milicaukce. 

.'\  Malleable  iron  castings. 

3.  One  hundred  and  fifty  thousan<l  dollars;  400  persons;  ."i(400,0(»0. 

4.  Chiefly  at  home.     Very  little  export. 

5.  To  foreign^dealers  direct. 

6.  Have  not  made  much  efibrt.     All  has  been  done  by  ''orrespondence. 

7.  The  taritf  to  Canada  and  England  is  almost  prohibitory  ou  our 
goods. 

8.  Do  not  know  of  any. 

9.  Might  increase  our  business  one-eighth. 

10.  Double. 

11.  Cost  of  i»roduction  considerably  less;  wages  are  lower,  also  raw 
material;  trans])ortation  rates  the  same. 

12.  Very  much  less. 

13.  We  have  no  competition  from  foreign  manufaeturers. 

14.  Foreign  competitors,  have  none. 

lo.  The  reduction  of  the  tariff  wouhl  mor«^  than  put   us  on  an  equal 
footing  with  them, 

1().  Output  has  increased, 

17.  I'ossibly  one-eighth. 

18.  Favorable  ratho;'  than  otherwise. 

19.  An  improvement. 

20.  Mo.,t  heartily. 


iigo. 
lower 


ITciiry  DiHHton  if;  Sonn,  Incttrporatid,  VhUtuhlphia. 

2.  Manufacturers  of  saws,  eaipenters'  tools,  tiles,  steel,  etc. 

3.  Capital,  !j<4,00(M)0(>;  value  of  annui.I  product,  *2,o00,000;  t-midoy 
1,7(M>  i)eople, 

4.  Both;  hom«^,  8('>  j)er  ceni;  foreign,  20  per  cent. 

o.  Oui  goods  are  distributed  both  through  foreign  dealers  an«l  »hroug"a 
connnission  hoiiscs,  the  greater  proportion  being  through  the  latter 
chauuel. 


J -^^ 


388 


RECIPROCITY   STATEMENTS. 


G.  We  liave  been  and  are  still  makinj;'  direct  etlorts  to  increase  our 
foreign  trade  by  sending  our  own  representatives  to  canvass  and  solicit 
direct,  especially  Austialia,  k^outli  Africa,  and  tln^  Continent. 

7.  There  are  some  obstai'Ies  in  some  loreign  c(mntries  that  restiict 
the  extension  of  our  trade,  but  we  cau  not  suggest  any  means  by  which 
they  may  be  removed. 

8.  One  of  the  changes  that  has  occurred  within  t!ie  past  lew  years 
has  been  the  iucaease  in  the  Canadian  taritl",  which  has  reacted  against 
us;  and  the  withdrawal  of  the  reci])rocity  treaty  with  (Juba  lias  ])riicti- 
cally  debarred  us  from  the  large  trade  which  we  had  formerly  enjoyed 
with  that  island. 

9.  The  renewal  of  reci])rocity  duties  upon  the  goods  we  manufacture 
would  aid  materially  in  the  extension  of  our  export  trade. 

10.  The  outi)ut  of  our  establishment  today  is  irom  10  to  20  per  cent 
greater  than  six  years  ago. 

11.  There  is  not  any  material  diilerence,  although  the  present  cost  is 
a  little  less. 

lli.  Our  selling  \.  ice  to-day  is  from  5  to  10  per  cent  less  th.iii  .six  years 
ago. 

13.  Our  principal  competition  is  from  English  and  German  makers, 
and  it  extends  to  all  the  foreign  markets. 

14.  The  advantages  of  our  foi-eign  comi)etitors  consist  in  the  low  rate 
of  wages  which  they  pay,  and  also  from  the  iact  that  their  freight  rates 
are  cheaper. 

15.  We  compete  with  foreign  makers  principally  in  (piality,  as  <)i;r 
goods  are  generally  very  nuu-h  higher  than  theirs,  although  in  the  very 
cheapi^st  lines  we  nu;et  them  in  some  instances. 

10.  The  production,  we  believe,  has  increased.  , 

17.  If  all  the  manufacturers  in  our  line  were  producing  to  their  full 
capa('ity  we  do  not  think  tlie  home  market  could  take  more  than  7(>  per 
cent,  and  the  .'30  [)ercent  would  therefore  have  to  be  for  exi)ort. 

18.  The  effect  of  the  recii)r()city  treaties  was  very  favorable  t(^  our 
ex])ort  trade,  and  its  repeal  was  especially  disastrous  to  our  Cuban 
business,  as  we  ])raetieally  lost  it  entirely. 

LM).  We  emphatically  favor  the  aijjdication  of  tiie  reci])rocity  i»rin(;i- 
]»Ie  t(>  future  tariff  legislation,  and  believe  that  a  continuance  of  same 
with  the  J<]ui<)pean  and  ^Vmerican  nations,  as  far  as  practicable,  will  be 
of  advantage  to  our  manufactures. 


The  Brush  Electric  Coinpaiiy,  devcland,  Ohio. 

We  sell  through  our  agents  to  foreign  countries.     We  have  not  a  very 
large  foreign  tra«le,  but  a  very  extended  one.    We  find  dilViculty  in  (com- 
peting witli  the  lOnglish  and  (lernnin  manufacturers  of  electrical  ai)pa 
ratus.    They  undeisell  us  in  abnost  every  <;ountry. 

We  believe  that  the<iuality  of  vVmeriiiaii  electrical  apparatus  is  supe- 
rior to  that  of  Mnglish  and  (Jerman,  but  their  labor  is  so  nuich  lower 
than  ours  that  they  make  lower  prices  with  as  much  margin  of  prolit 
us  we  nnike. 

If  the  tariff  were  taken  o(1'  of  ele<ctrical  machinery  in  this  country,  we 
believe  that  we  would  be  swamped.  The  mere  approa(di  to  oi-  sugges- 
ti(Mi  of  the  idea  and  the  uncertainties  connected  with  it  during  the 
last  ])iesidential  eanij)aign  on  the  part  of  certain  parties  unnecessary 
to  mention  has  cost  us  niilli<ms  of  dollars. 

We  favor  the  application  of  reciprocity  to  future  tariff  legislation. 


IIECIPIIOCITV    STATEMENTS. 


389 


Wo  l)olieve  it  si  most  oxcelleiit. business  idea.  We  cany  it  out,  and  we 
believe  every  other  seller  and  imrchaser  carries  it  out  i n  a  lar}> e  or  a 
small  Avay  in  the  every-daj-  aliairs  of  business  life.  Therefore,  we  see 
no  reason,  if  it  is  a  good  ]>rinciple  universally  applied,  why  it  should 
not  act  as  well  in  the  case  of  one  nation  dea]in<?  with  another. 

In  delinite  reply  to  question  No.  17,  we  bej;-  to  state  that  none  of  the 
jjrcat  factories  of  the  country  have  been  run  to  their  full  capacity  dur- 
in,i>-  the  past  two  years.  Our  factories  are  almost  universally  enlarged 
and  new  cai)ital  invested  therein  as  our  business  increases,  so  that  in  a 
j'.'ciieral  Avay  we  might  say  that  if  the  times  were  eciual  to  what  they 
were  in  18!>U  the  iilectrical  factories  of  this  country  would  be  about 
equal  to  our  domestic  market.  But  we  are  all  jjrepared  to  increase  our 
investment  and  enlarge  our  business.  Our  (Tovernment  does  little,  if 
anything,  toward  encouraging  our  foreign  trade. 

Jn  reply  to  <]uestion  No.  1<S,  we  beg  to  state  that  the  ettect  of  the  reci- 
procity treaties  of  1S90  Avas  most  I'avorable  and  their  repeal  most 
unfavorable  to  the  electric  business. 


{>!covill  Mirnvfacinrmg  Company,  Waferhur)/,  Conn. 

2.  Sheet  brass,  brass  wire,  metal  buttons,  lamps,  kcu-osene  burners, 
sockets  for  electric  burners,  etc. 

.S.  Capital,  s;J84,475;  net  assets,  $2,000,000;  emi)loyee8,  1,800. 

1.  Two  per  cent  foreign,  08  per  cent  domestic. 

T).  Through  <!ommission  houses  oidv. 

«.  No. 

7,  8,  and  0.  Have  never  informed  ourselves  on  these  subjects. 

10.  Thirty-five  per  cent  increase  in  value;  (50  i>er  cent  in  quantity. 

n.  Wages  unci  j>nged;  material  declined  in  proportiiui  of  17  to  11. 

12.  From  10  to  TtO  per  cent  less. 

1.').  The  competition  abroad  is  from  German,  I'^nglish,  French,  and  l>el- 
gian  manufacturers.  The  foreign  competition  in  tlu^  domestic  nuirket 
is  Irom  French  and  (lerman  manufacturers  ntostly. 

14.  Cheaper  labor. 

ir».  Quality  equal,  if  not  superior,  to  anything  made  abroad,  with  the 
exception  of  fashionable  novelties  in  buttons  that  come  from  France 
and  (Jermany.  Can  hold  the  domestic  trade  by  hel])  of  the  tarilf,  and 
can  export  some  few  goods  in  competition  with  lOuropean  manufac- 
tarers,  but  only  such  as  are  producted  by  highly  developed  machinery 
and  sold  at  a  very  small  i»rolit  to  ourselves. 

ir>.  It  has  increased. 

17.  We  tliink  that  the  manufacturers  in  the  United  States  in  our  line 
have  built  up  their  facilities  to  meet  the  ])resent  demands,  which  have 
eome  mostly  from  the  don.estic  market,  and  that  the  average  faiiilities  for 
mannliicturi^  are  in  i)roi)ortion  to  (he  averagedemand  from  such  sources. 
Then^  would  therefore  be  no  surplus  for  (^xjtorf ,  as  a  rule,  but  iiu-reased 
demand,  if  likely  to  be  permanent,  would  cause  them  quickly  to  iuc'ease 
Iheir  ])lants  to  meet  it.  * 

18aiull'>.  We  are  not  informed.  ^  ^ 

20.  We  do  not  think  reciprocity  treaties  with  FiUroi)ean  nations  would 
be  likely  to  benelit  us,  but  with  Anu'ricau  nations  who  arc  not  manu- 
facturers reciprocity  treaties  which  would  indue*'  them  to  rec<'ive  our 
manufactured  goods  on  more  favorable  terms  than  competing  hiUropean 
goods  would  undoubt(Mlly  res»dt  in  the  extension  of  our  trade  and 
eventually  enable  us  to  secure  a  very  strong  foothold  in  such  countries. 


390 


RIX'IPROCITV  STATEMENTS. 


JIihh<(r<l,  tSpniccry  li(,rUett  xl'  Co.,  Chicaf/o. 

2.  Uardwaro,  luetnls,  sportiiij''  floods,  bicycles,  and  cutlery. 
;>.  Principally  Mexi«'(>.     W'a  arc  rcccivinj;"  in(|nirics  and  sonic  orders 
from  Argentina,  and  a  lew  otlier  ISontli  Anieri(;an  JJepuldics. 

4.  I>y  advertising,  circulars,  correspondence,  and  traveling  salesmen 
in  JMexico. 

5.  AVe  stiggest,  if  tlie  matter  was  i)roi)erly  handled,  a  more  liberal 
construction  could  be  secured  in  regard  to  the  specitication  or  declara- 
tion of  hardware,  cutlery,  et(r.  There  seem  to  be  numerous  technical- 
ities which  impede  commerce  without  ajtparently  helping  the  IMexican 
tarilf  schedule,  and  we  thiidc  a  well-poste<l  man  could  use  iuHuenceto 
correct  this.  To  illustrate:  On  lamp  shades  made  of  silk  or  similar 
material  there  is  a  snmll  wire  frame  Avith  a  nanow  strij)  of  brass  to 
supi)oit  the  shade;  the  main  constru(;tion  is  of  silk,  but  the  taritf  ])ro- 
vides  that  that  little  jiiece  of  brass  shall  be<leclare(l  on  consular  invoice 
sei)arate  from  the  silk.  This  entails  expense  and  great  annoyance,  and 
only  illustrates  a  juimber  of  other  items  of  a  similar  nature. 

(>.  We  are  oecasioiniUy  receiving  notices  of  minor  changes  in  the 
INfexican  import  tarilfs,  but  they  are  so  small  that  they  cut  no  iigurc. 

7.  Tlie  removal  or  substantial  re(lu(!tion  of  the  custom  duties,  we 
think,  would  greatly  increase  our  trade. 

8.  Very  much  larger. 

'.).  Our  entire  line  of  goods  is  from  20  per  cent  to  40  per  <'ent  lower. 

10.  Our  foreign  com])etitors  handle  goods  that  are  manutiictured  by 
much  cheajier  laboi-  and  from  free  raw  material.  The  freight  from 
i">nglish,  (Jerman,  and  French  ])orts  is  lower  than  it  is  from  Chicago; 
heavy  freight  is  often  carried  as  ballast  by  vessels  that  return  Avith 
timber,  cotton,  and  grain. 

11.  The  quabty  of  our  goods  we  regard  as  nnich  su])erior  to  those 
furnished  as  a  rule  by  foreign  merchants.  Unfortumitely,  on  a(!count 
of  the  causes  named  in  our  answer  to  the  ])receding  (luestion,  the  for- 
eigners are  otten  able,  to  undersell  us. 

12.  We  regard  the  general  effect  of  the  reciprocity  treaties  in  1800 
as  favorabh'  to  theexi»ort  trade  of  the  United  States,  As  w»^  were  not 
largely  engaged  in  export  business  at  that  date,  we  have  no  record  as 
to  its  actual  ellect  njion  our  business. 

];{.  We  do. 


Tlir  Al/ord  (tiui  livrhcU'  (Uwipani/,  Krir  Yorl: 

Our  oxperienee  was  that  during  the  time  the  lllaine  leciprocity  trea- 
ties were  in  force  the  trade  between  this  country  and  those  with  whic^li 
tlu^  treaties  were  in  force  was  very  much  better  than  at  any  time])ri'vi- 
ous  or  since  the  treaties  have  been  abrogated.  There  was  a.  very  con- 
siderable iiuM-ease  in  the  business  that  we  «lid  with  the  exjiort  liouses 
dealing  with  tli«>  countries  witii  which  the  treaties  were  in  force,  and 
more  esj)eeially  between  this  country  and  (-uba.  There  never  was  a 
tinu'  during  all  the  years  sim  e  we  have  been  in  business  that  we  had 
so  much  trade,  Irom  ('id)a  i)art.icularly,  as  we  did  during  the  existeuceof 
the  treaty;  and  our  opinion  is  that  nothing  Wi's  ever  dcmi^  by  this  (lov- 
ernment  to  help  the  export  trade  (especially  in  our  i)articular  line)  so 
much  as  the  reciprocity  treaty,  but  as  soon  as  the  the  treaty  was  abro- 
gate<l  Me  found  that  the  trade  dropped  off  wonderfully — it  alinoHt 
stopped  for  a  long  time. 


RECIPKOCITY    STATEMENTS. 


391 


Wo  had  quite  .i  nuniber  of  onkn-s  in  the  liouso  ready  to  be  shipped, 
aii<l  orders  at  the  laetory  which  wei'c  (•iiii('el<'(l,  and  we  were  infuiineil 
]>y  several  i)aities  in  the  export  trade  that  nearly  all  orders  that  they 
had  in  hand,  espeeially  from  ('nl)a,  were  eanceled.     Oiu^  party  advised 


Ih 


1  hieh 


lis  that  theeoniniissions  amounted  to  at  least  J?!*, 000 v,.,.v ,.„ 

they  had  canceled,  and,  as  we  understand,  the  con\missions  did  not 
exceed  5  per  cent.  Several  other  exporters  told  us  that  they  had  <)r<lers 
for  ]arj;e  (piantities  of  goods  canceled  and  that  they  lost  considerable 
money  from  the  cancellation  of  the  orders. 

We  liad  conversation  with  f[uite  a  number  of  ex])ort  merchants  and 
everyone  that  we  talked  with  was  very  much  pleased  that  the  reci- 
procity treaty  was  put  in  force,  as  the  tra(h»/  was  very  much  increased, 
but  that  they  lost  a  good  share  of  that  tradi^  when  the  tieaty  was  abro- 
gated. VV^e  think  that  you  would  lind  upon  invest ij;ati(»n  tlnit  this  was 
the  case  with  nearly  all  exporters  to  the  iSpanish-speaking  countries. 


|f.j| 

ii: 

Wf 

1    1 

'1 

( 

1 

i  ¥ 


the 


Nieholaoti  File  ComjMHy,  rromlenve,  It.  I, 


\\  trea- 
which 
previ- 
•y  con- 
houses 
le,  and 
J  was  a 
|ve  had 
Mice  of 
Js(!ov- 
jinc)  so 
abro- 
bliuost 


2.  l-'iles,  rasps,  and  fders'  tools. 

;j.  Capital,  $500,000;  800  io  1,000  hands;  annual  i)roduct,  >«700,000. 

4.  Market  both  at  home  and  abroad.  At  ])rescnt  honu'  market, 
including  Canada,  is  over  9.")  per  cent,  though  Ibreign  trade  is  ineieasing. 

5.  Hoth. 

(I.  Yes;  by  personal  traveling  and  canvassing  by  our  i)resi(lent, 
advertising,  sending  of  agents,  etc.  Wo  have  an  otlice  and  warehouse 
in  liondon.  Fair  success  iu  (Jreat  Britain,  Fraiu'e,andnolIand.  Some 
orders  from  (lermany  direct.  A  beginning  with  Jai)an.  (Jood  start 
with  India  through  agents.  Some  trade  witli  South  Africa,  and  various 
l)arts  of  South  America  atul  Central  America  through  commission 
liouses. 

7.  Tarills  of  certain  countries  nndonbtedlj'  check  us.  We  coukl  do 
more  with  Canada  if  her  tariff  on  tiles  did  not  exist.  Certain  i>arties 
tlu'rii  are  trying  to  inciease  the  tariff  on  files  fiom  .'!")  to  r>0  ])cr  cent  iu 
the  interest  of  the  (llobe  File  (Jom[tany,  the  sole  file  nuuiufacturer  of 
any  stainling  in  Canada,  and  not  large  at  that. 

If  this  increase  is  made  we  shad  be  much  interfered  with,  as  our 
business  iu  (Canada  is  now  considerable,  and  would  be  greater  if  the 
IM'csent  tariff  was  even  lower.  The  tariff  of  (lermany,  wheie  many 
cheap  files  are  made,  is  a  hindrance  to  the  extention  of  our  trad  3,  as  also 
with  IJelgium  and  France. 

S.  Nonc^  that  we  are  aware  of. 

i).  Very  materially  in  Canada,  Cermaiiy,  lielgiuju,  France,  and  Aus- 
tria, countries  which  prodin-e  files  and  rasps  to  more  or  less  extent. 
Cncler  recijjrocity,  where  we  would  pay  a  lower  tarilf  than  Great  Britain 
and  (iermany,  we  would  be  greatly  assisted. 

10.  Forty  i)er  cent  greater. 

11.  Wages  and  raw  material  slightly  less;  fransportatiiui  about  the 
sanu'.    Cost  of  production  about  5  to  ~h  per  cent  less. 

12.  Present  selling  prices  about  18  ])er  cent  less  than  those  of  six 
years  ago. 

!.'{.  In  this  country  we  nuH't  com[)ctiti(ui  from  ICnglish  and  Swiss  files 
ill  line  giades,  the  so-called  Swiss  i)attern  for  Jewelers'  use,  etc.  Wo 
would  be  very  much  assisted  in  this  Hue  by  an  increased  tariff",     iu 


392 


RECIPROCITY   STATEMENTS. 


:h^ 


tliese  small  tiles  labor  is  so  important  an  element  in  the  cost  tlint  elieap 
European  labor  gives  ibreign  manufacturers  great  advantages. 

In  all  foreign  countries  we  meet  (!ompetiti<m  from  I'^nglish  files,  and 
from  German  files  in  many  c<mntries. 

14.  English  and  German  makers  have  been  long  established  in  foreign 
markets,  understand  them  thoroughly,  and  the  people  are  necuBtomed 
to  their  i)roducts.    Our  goods  are  liked  wherever  they  go. 

Foreign  makers  get  labor  much  cheaper,  but  are  inferior  to  us  in 
machinery.  They  have  better  steamship  communication  witli  all  parts 
of  the  world,  and  dieaper  rates.  We  must  have  better,  more  frequent, 
and  cheaper  steamship  service  to  Soutli  America,  Africa,  and  other 
ccmntries  in  order  to  com])ete  successfully  with  England  for  foreign 
trade.     We  are  also  in  great  need  lor  banking  facilities. 

la.  In  quality  our  liles  are  fully  the  ecjual  of  any,  and  we  are  at  no 
disadvantage  in  this  respect;  in  price  we  can  conipete  successfully  in 
the  regular  lines  because  of  our  better  machinery,  in  s])ito  of  foreign 
cheap  labor.  In  the  small  Swiss  pattern  liles  our  ((uality  is  up  to  the 
foreign,  but  we  are  at  a  disadvantage  in  this  line  in  prices,  as  above 
stated. 

16.  Probably  decreased  alxmt  15  per  cent. 

17.  Terhaps  SO  per  cent  t>f  the  i)resent  possible  c.apacity  of  this 
country  could  be  absorbed  by  home  markets.  We  should  suppose  that 
there  is  20  ])er  cent  surplus  for  foreign  markets,  if  all  nuikers  produce 
tA)  full  cai)acity. 

18.  Very  favorable,  indeed,  to  this  business.  Plans  formed  under 
them  were  checked  by  their  repeal.  We  should  like  similar  ones  made 
again. 

L'O.  We  do,  by  all  means.  Kecii)rocity  treaties  with  Mexico,  South 
and  Central  America  would  assist  us  greatly,  as  English  and  Gernuiu 
makers  have  their  trade  now. 


reerleufi  MamiJ'dclurituj  (.ompanyy  of  Jjotmville,  Ky. 

2.  Manufacturers  of  (irephace furniture. 

3.  Capital,  !sSliOO,0(K);     300   employees;     value   of   annual   ])roduct, 
$L'00,000. 

4.  Have  trade  mostly  in  the  l^^nited  States.     Have  some  foreign  trade 
in  England,  Australia,  China,  and  Canada. 

5.  Foreign  trade  sold  through  dealers  or  commission  houses,  except 
in  Canada. 

0.  Have  made  direct  ettbrts  to  extend  foreign  tradt;  by  circidars  and 
catalogues. 

7.  A  duty  of  3r>  ])er  ceiit  in  Canada  enables  foreigners  to  steal  our 
patents  and  make  the  goods  cheaper  than  we  can  produce  them. 

8.  Know  of  no  (diange  in  foreign  tarilf  relating  to  our  line  of  manu 
facta re. 

J).  A  reduction  of  the  tarilf  dutiis  would  enable  us  to  supply  the 
foreign  markets. 

10.  Sixty  per  cent  increase. 

11.  Twenty  per  cent  decrease. 

12.  Fifty  i)er  cent  decrease. 

13.  Greatest  competition  in  Canada  and  England. 


r 


KECIPROCITY    STATEMENTS. 


393 


i 


14.  Advantages  in  transportation  greatly  in  favor  of  foreign  ('oini)et- 
itors;  also  in  cost  of  inaiiufa(!tnre.  The  only  advantage  we  have  is  the 
making  a  liner  class  of  goods. 

in.  We  can  compete  with  the  world  in  (piality,  and,  if  tarilf  was 
reduced,  in  ])rice8. 

10.  J  las  increased. 

17.  The  business  could  be  increased  75  per  cent  if  free  access  could  be 
had  to  foreign  markets. 

18.  Reciprocity  treaties  are  favorable  to  our  export  trade;  their  repeal 
an  injury  so  far  as  foreign  goods  were  introduced  into  this  country  in 
com])etition. 

20.  Yes;  we  favor  the  recii)rocity  principle  as  applied  to  any  future 
tariir  legislation. 


The  Heading  l!^tor<;  Workti,  Iicadin;/,  I'a. 

2.  Stoves,  ranges,  and  furnaces. 

3.  Five  hundred  and  thirty-seven  thousand  dollars;  onthea\erage 
about  450;  about  $550,000. 

4.  We  sell  less  than  one  per  cent  of  our  i)roduct  outsid«i  of  the  ( !  n  it  ed 
States.  ^ 

5.  The  goods  we  shi])  to  foreign  countries  are  usually  sold  tlirough 
commission  houses. 

6.  We  have  made  lu)  ])articular  ell'ort  to  extend  our  loreign  trade. 

7.  All  tariffs  are  obstructions  to  trade  and  the  tariffs  existing  in  for- 
eign countries  on  imports  into  those  countries  are  obstacles  to  trade. 
Removal  of  these  tariffs  wouhl  facilitate  trade. 

8.  We  do  not  know  of  any  recent  changes  in  the  tariffs  of  foieign 
countries. 

0.  Our  answer  to  No.  7  will  serve  as  an  answer  to  this  question. 

10.  Our  ]>roduct  has  increased  in  1805  about  40  per  cent  ovei' our 
product  in  18S0. 

11.  Our  total  cost  of  j»roducing  goods  is  alxuit  5  per  cent  lower  now 
than  in  1880. 

12.  Our  present  selling  prices  average  about  4  per  cent  lower  than  in 
1880. 

13.  AVe  do  not  feel  any  competition  from  foreign  manufacturers  in  our 
line  in  the  Hnited  States.    We  do  iu)t  think  we  would  feel  any  com 
petition  from  foreign  manufacturers  even  if  tliere  was  no  tjirilf  whatever 
on  the  lines  of  goods  nuide  by  us. 

14.  Tiie  information  we  have  in  regard  to  costs  of  manuljuituring 
stoves  in  Clermany  and  lOngland  lead  us  to  the  o|»inion  that  we  can 
produce  these  goods  at  lower  cost  in  tlie  United  States  than  they  can 
b(^  l»roduced  in  the  two  countries  named. 

15.  Our  i>ri<'es  and  quality  are  in  our  favor  in  rom])eting  for  trade  in 
our  line  in  foreign  countries.  The  chief  barriiu-  to  selling  goods  of  our 
manufacture  in  foreign  c<»nntries  is  the  <liffeience  in  tastes  and  <'Ustoms. 
Almost  every  country  has  its  own  i)eculiar  ideas  as  in  n<M»ds,  and  it  is 
dillicult  to  cliange  these  ideas.  If  a  c-ountry  has  been  using  the  crude 
and  clumsv  troods  made  in  J'higland,  it  is  dillicult  to  t>ersua(le  tluMu  to 


use  the  handsomer  and  more  con\enient  goods  nnide  in  the  United 
States,  even  though  tlie  ])rices  are  the  same.  The  power  of  fashion  and 
whim  is  also  felt  within  the  United  States,  one  section  of  a  country 
freciuently  taking  goods  of  different  form  and  style  from  another  section 
without  any  reason  whatever  except  established  custom. 


'i 

'4  ^i 


h  -V 


394 


RECiriiOCITY    STATEMENTS. 


1(5.  The  totiil  product  ot  .stoves  in  tho  I'liited  States  lias  iiiereased 
(luiiiif;  (he  hist  six  years. 

17.  Tills  is  a  very  hirj^o  question,  and  I  am  of  the  opinion  tliat  there 
is  no  real  overproduction  ol"  yoods  in  our  line  in  tiie  United  States,  as 
what  wouhl  seem  to  be  an  overproduction  is  due  to  mahuljustment  in 
the  distribution  ol'  wealth.  Under  rij^ht  an<l  Just  eeonoraie  (conditions 
I  am  confident  tliat  tlie  demand  for  stoves  would  be  much  greater  than 
the  present  facilities  of  manufacturers  could  sui)i)ly. 

18.  We  observed  no  effect  from  the  reciprocity  treaties  ot  I.SIM). 

-JO.  I  do  not  favor  the  application  of  tho  reciprocity  principle  to 
future  tariff  lej^islation.  I  am  stron<;ly  in  favor  of  absolute  free  trade, 
and  believe  that  it  would  b(^  far  better  for  the  manufacturing  interests 
of  this  country  than  any  other  ti-eatnuMit  of  the  trade  (pjestion.  Not 
only  do  I  believe  that  the  tariff  on  imimrts  is  wrong  in  so  far  as  it 
interferes  with  tiade,  but  I  believe  that  a  tariff  is  a  pernicious  method 
of  raising  revenue. 


)| 


•  > 

4. 

•  ). 

('►. 

7. 

8. 

i). 

10 

11 

12 

i;{ 


«V.  Wilhs  M<(nii/a('tui'iHij  Cnmixmi/,  Cliiattjo,  III. 

Hot-water  heaters,  steam  generators,  etc. 

Mexico,  Italy,  Holland,  British  America. 

Through  New  York  exporting  agencies,  circulars,  etc. 

No. 

None  that  we  know'  of. 

None  that  Ave  know  of. 

An  inciease  of  200  per  cent. 

About  20  per  cent  less. 

,  Cln  aijcr  labor. 

,   IJetter  in  <iuality  but  higher  in  price. 

,  {<()  l'\ivorable;  (/>)  unfavorable. 

,     V(!S. 


m 


5. 

0. 

7. 
8. 
0. 


r.  K.  Detkrick. 

2.  Chiefly  baling  materials  and  bands. 
.'{.  Nearly  all  countries,  to  a  limited  (extent. 
4.  Oirculars  all  over  and  advertising  in  export  pai)ers. 
None  that  1  know  of. 
None. 

lunuaterial. 
About  the  same. 

We  discount  about  10  jier  cent  or  more. 
10.  Chiefly  in  transportation  and  then  by  being  in  the  way  of  trade. 
Sonu'times  we  have  to  ship  by  way  of  competitois  to  reach  markets. 

ICnglaud  is  (connected  by  ferry  to  all  points,  ami  we  have  very  bad 
communications.  Sujipose  you  start  a  dry  goods  store  for  retail  at 
Madison  S(piare,  New  York  City,  and  1  open  another  north  of  the 
Harlem.  That  is  the  sitiuition  exactly.  When  we  get  up  a  volume  of 
trade  that  will  bring  us  in  touch,  and  with  corresponding  transporta- 
tion facilities  direct,  then  we  will  get  oui'  share  of  all  trade  and  some 
more.  However,  in  all  lines,  as  a  first  consideration,  wo  want  to  keep 
our  home  trade,  as  that  is  worth  more  to  us  than  trade  of  all  the  world 
besides,  hence  no  reci[)rocily  with  any  country  will  compete  for  homo 
trade. 


KKCII'liOriTY    STATEMENTS. 


305 


The  I'ratt  cO  Cadif  (Joinixan/,  Ilmf/ord,  Coini. 

2.  Iron  and  brass  valves,  wator  liydraiits,  and  iron  lonndry. 
.'?.  Capital  of  (!()in|)aiiy,  .S40(),(MMI;  annual  jjroduct,  $  1()(>,()()0. 
1.  Ninety  onc-liundredtlis  at  lionic. 


(i. 

7. 

8. 

0. 

10 

11 

12 

i;j 

14, 
spec 
15 
IG 
17 
18 
1!) 


Agents. 

No. 

None  whatever. 

None. 

None  whatever. 

,  Larger. 

,  About  the  same. 

In  favor  of  the  ])ur(!hasers. 

None. 

They  have  cheaiter  labor.     We  overcome   this   by   implements, 
al  tools,  and  machinery. 

Can  ecpnil  them. 

huneasi'd. 
,  All  of  it. 

Of  no  elfei^t. 

N(.ne. 

I  favor  it  on  general  ])rineiples. 


p' 


Dean  Bros.,  sfram  jmrnp  icorls^  IiidiarDipolis,  Tnd, 

We  oecasior..i]ly  shij)  a  pump  to  Canada,  Mexico,  or  South  America. 
Our  exjwrt  business  is  insigniliciint.  We  therefoie  ]);)ss  over  your 
questions  except  No.  L*0.  lu  answer  to  this,  nllow  us  to  say  that  we 
emi)hatically  approve  of  the  a])|)lication  of  the  recijnocity  ])rinciple  to 
future  taritf  legislation.  We  believe  a  return  to  the  ])rotective  tariff 
l)olicy,  (combined  with  theextensionofreiuprocity  treaties  as  instituted 
by  General  Ilanison's  Administration,  would,  in  a  few  nmnths,  make 
this  the  most  i)rosperous  nation  on  the  globe.  We-  think  that  the  pres- 
ent Administration  has  <lone  every  tiling  possible  to  interfere  with 
domestic  and  foieign  trade. 


Atlan  Tacic  Corporation,  liosfou,  Arafts. 

During  the  reign  of  reciprocity  our  foreign  tradi^  grew  ra])idly,  but 
sinc^e  its  abrogation  our  export  business  has  shrunk.  In  this  particular 
line — tacks,  briuls,  and  miils — reciprocity  wiis  ii,  great  help  to  ns. 

We  are  tlie  largest  imikers  in  the  worhl  in  our  line. 


•J  ! 


Uth/e  Afoor  Bridf/c  Worl-st,  Wilmiiififon,  Del. 

We  nnmufaeture  steel  and  iron  superstructures  for  railway  and  high- 
way bridges  and  viaducts,  eleviited  railwiiy  sn])ei'structures,  and  struc- 
tural franu'work  for  buildings  and  roofs  of  buildings. 

The  amount  of  (capital  employed  is  about  .$1,200,000.  Numbei- 
employed,  from  .500  t<)  800;  the  value  of  the  annnal  ]»roduct,  from 
12,000,000  to  .1«;3,000,000,  depending  upon  the  (ondition  of  trade. 


396 


RECIPROCITY   STATEMENTS. 


Our  marlvct  is  .almost  excluaivoly  at  home;  occasional  sales  arc  made 
tliiou^li  ex])()rting  ho'ises  for  abroad,  but  these  form  but  a  small  per- 
centajje  of  the  value  of  our  business. 

Durinj;  1882, 1883,  and  1884  we  made  direct  eftbrt  to  reach  the  Austra- 
lian market  by  sending  a  representative  to  that  country,  and  obtained 
throuj;h  hisellbrts  several  contracts  for  railway  and  hijihway  bndj^es  in 
Victoria  and  New  South  Wales.  These  were  taken  in  competition  with 
English  manufacturers.  Our  success  in  these  particular  instances  was 
due,  tirst,  to  the  diHerence  in  the  desijjns  of  the  structures,  and  next, 
to  the  fact  that  the  raw  materials  were  purchased  in  p]urope,  broujiht 
to  our  works  and  manufactured,  and  the  import  duty  refunded  to  the 
extent  of  00  or  95  i)er  cent.  ( )ur  exi)erience  with  that  market  was  that 
sufficient  work  could  not  be  obtained  to  Justify  the  maintenance  of  a 
competent  engineering  and  contracting  office  in  that  country. 

We  are  not  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  prevent  the 
(ixtension  of  our  foreign  trade  as  compared  with  other  exporti^rs  to  the 
same  markets. 

The  output  of  our  establishment  ns  compared  with  that  of  six  years 
ago  is  practically  the  same. 

The  present  cost  of  production  as  compared  with  that  of  six  years  ago 
is  considerably  less,  due  mainly  to  the  decreased  cost  of  raw  materials, 
our  own  wages  and  transportation  rates  remaining  practically  the  same 
now  as  then. 

Present  selling  x)rices  are  very  much  lower  thau  those  of  six  years  ago. 

Our  market  being  practically  confined  to  the  home  market,  we  meet 
no  competition  whatever  from  forcigii  manulacturers. 

We  are  in  favor  of  the  application  of  the  reciprocity  principle  to 
future  tariff  legislation,  and  the  enactment  of  a  general  law  authoiizing 
the  President  to  negotiate  reciprocity  treaties  with  both  European  and 
American  nations  so  far  as  possible. 


Livingston  Kail  Company,  Keic  YorTe. 

4.  Both  home  and  abroad,  but  mainly  home;  had  a  fair  and  growing 
trade  in  South  America  and  Cuba,  but;  owing  to  abrogation  of  leciproc- 
ity  treaty  trade  with  Cuba  ceased  entirely,  and  was  largely  reduced 
from  South  America. 

o.  I  sell  to  dealers  direct;  also  through  commission  houses. 

6.  Yes,  by  sending  samples  to  South  America,  Cuba,  Australia,  and 
New  Zealand,  and  have  met  with  good  success. 

7.  Yes,  the  duties  on  lunscshoe  nails,  in  which  I  am  a  large  dealer — 
mu(!h  the  largest  in  the  country.  Since  the  abrogation  of  the  reciprocity 
treaties  they  have  been  admitted  into  Cuba  and  South  American  jwrts  at 
less  rates  than  from  New  York,  and  I  would  suggest  the  reenactment 
of  those  treaties  if  possible, 

9.  The  removal  of  duties  which  discriminate  against  th*i  United  States 
would  largely  increase  the  export  trade. 

12.  Much  lower. 

13.  Competition  is  mainly  from  Sweden,  Norway,  and  Germany.  I 
was  the  first  one  to  introduce  machine-made  horse  nails  into  Cuba  and 
many  of  the  South  American  countries.  The  trade  was  increasing  satis- 
factorily until  American  machines  were  taken  to  Europe,  when,  in  con- 
sequence of  the  low  price  of  iron  and  wages,  the  European  makers 


KECIPKOCITY   STATEMENTS. 


397 


» 


undersold  me  in  tlie  countries  nunuMl,  but  w  lien  tlic  rcc-iprocity  treaties 
were  euiuted  the  trade  was  coming  bade  here  rapidly,  and  was  as  rap- 
idly stoppeil  on  tlieir  abroj;ation. 

14.  In  lower  cost  ol'  material  and  wajics.  As  an  instance  of  lr»'ij;ht, 
would  state  that  trei,i:ht  was  obtained  on  5,000  pounds  nails  from  (Jot- 
tenber<^-,  Sweden,  to  Memphis,  Teun.,  at  30  cents  per  100  i)ounds,  when 
it  rules  about  60  cents  from  New  York. 

15.  (Jan  not  compete  with  foreij;n  labor  and  material. 

10.  In  consequence  of  the  introduction  of  trolley  cars,  bicycles,  etc., 
sales  will  not  averaj^e  any  larjjer  than,  say,  six  years  aj^o. 

17.  The  makers  of  nails  in  this  country  have  a  i)roducinj;' ca]>ac'*^^y  of 
double  the  quantity  iu)w  used  here,  and  therefore  need  an  export  mar- 
ket to  run  factories  in  full  force. 

18.  This  is  fully  answered  in  No.  13. 
20.  Yes,  most  decidedly. 


James  M.  Swank,  General  Manager  American  Iron  and  Steel  Association. 

Philadelphia,  March  20,  1896. 
Sib:  In  reply  to  your  letter  of  March  4,  which,  however,  was  not 
received  until  March  12,  1  have  the  honor  to  submit  the  following  indi- 
vidual views  concerning  reciprocity  treaties  between  our  Government 
and  the  Governments  of  foreign  countries. 

I  am,  sir,  very  respectfully,  your  obedient  servant, 

James  M.  Swank, 
General  Manager  of  the  American  Iron  and  Steel  Association. 
Hon.  A.  J.  Hopkins,  Washington,  I).  0. 


:■■■'■  til 


and 


States 


in  con- 
luakors 


The  questions  of  commercial  reciprocity,  free  siijjar,  and  a  sugar  bounty,  belong 
tofU'ther,  beciiuse  to-day  tiie  ])olicy  of  reciprocity  iu  tariff  lugitjlation  in^■o^ve»',  the 
aliiuidonnient  of  protective  duties  on  snj^ar,  and  it  is  not  to  be  supjiosed  tii.it  the 
li(*publican  party,  wliich  willi)robably  be  respouMible  for  tlie  tarilf  lefiislatiou  of  the 
inuucdiato  future,  will  seriously  propose  to  revive  tlie  reciprocity  feature  of  the  tarilf 
act  of  1^90  without  also  revivin<;'  its  suj^ar-bounty  featur<\  Suj-ar  can  not  be  made 
free  under  reciprocity  without  dcstroyinjt  our  sugar  industry  unless  a  bouni  y  be  ]>aid 
to  our  sugar  jjroducers.  It  may  be  assumed  that  the  Kepublican  party  will  not  aban- 
don our  sugar  industry. 

There  is  no  mention  of  reciprocity  in  any  of  the  jdatforms  of  the  Kej)ublican  party 
prior  to  the  Presidential  cam])aigu  of  1892,  when  the  Minneapolis  couv((ntii)n  of  that 
year  indorsed  "the  Kepublican  i)olicy  of  reci))rocity  "  which  had  been  incorporated 
in  the  tariff  act  of  18!H),  but  it  did  not  mention  the  sugar  bounty  policy  which  had 
been  incorporated  in  the  same  tarilf,  nor  has  a  sugar  bounty  or  any  other  bounty  for 
the  benefit  of  any  of  our  prothuitive  industries  ever  been  approved  by  a  Republican 
national  convention.  The  reciprocity  and  sugar  bounty  legislation  embodied  in  the 
tariff  act  of  18i)()  wiis,  therefore,  not  only  legislation  which  had  not  pre\iously  been 
recommended  by  a  Republican  national  convention,  but  vh<'  sugar-bounty  feature 
of  that  legislation  hw  not  since  been  ajijtroved  by  the  same  aut,hority.  Here  is  an 
anomaly.  Kecii)rocity  and  a  sugar  bounty  must  stand  or  fall  together  under  a 
Republican  Administration  of  the  Government,  and  yet  one  has  been  aj)proved  and 
the  other  has  not  been  approved. 

'fhis  country  had  experimented  with  the  policy  of  reciprocity  in  two  instances 
before  the  passage  of  the  tariff  act  of  1890 — a  reciprocity  treaty  with  Canada,  con- 
cluded in  1854  and  continuing  in  force  until  18GG,  and  a  reciprocity  treaty  with 
Hawaii,  concluded  in  1875  and  still  in  force.  Our  experience  with  Canadian  reci- 
procity was  not  satisfactory  to  this  country.  It  is  generally  understood  that  the 
reciprocity  trejity  with  Hawaii  was  entered  into  for  other  than  commercial  consid- 
erations. 

The  sugar-boiuity  provision  of  the  tariff  act  of  1890  was  an  entirely  new  feature 
in  our  tariff'  legislation.    We  know  of  no  precedent  for  the  payment  of  a  bounty  by 


398 


RECIPROCITY    STATEMENTS. 


tlu)  (ioiieral  flovoriiiiioiit  for  the  pioiiidtiou  of  any  prodiictivo  Ainorlciin  indiiHtry. 
Tlie  iiuiiieHt  lipproacli  lo  tlio  atloptioii  of  ii  policy  of  tliJH  chiiraitor  was  in  tht^  conn- 
try'H  early  liiHtoiy,  w  Imn  a  IxMinty  was  paid  to  jnornoto  our  lisiK^ry  indiiHtry,  'out 
wliiiOi  also  prouiotcil  tlu;  buililinir  up  of  an  American  luuruliant  marine  and  the  train- 
ing of  sailors  for  tlio  American  Navy. 

Wlicn  tlio  Ways  and  Moans  (Joininitlco  of  the  ITonsoof  UoproHcnfativefl  frannMl  the 
bill  which  aflf^rwardH,  with  amcniimcnts,  houame  the  taiill'  act  of  I8'.t0,  it  I'epealed 
the  pi<!vioiiHly  existing  protective  duties  on  sufjar  ami  jirovidcd  a  Ixninty  of  2 
cciKM  a  pound  for  the  hom(^  producers  of  ( ane,  hcct,  and  sorghum  HU^ar,  but  made 
no  ref(U()uce  to  reciprocity.  The  hill  jJMssod  the  House  on  May  21,  IH'.IO,  with  the 
HU}^ar-l)ouuty  provision  included.  Jt  was  relerred  to  the  Seuato  Committee  on 
Finance  on  May  '2',\  and  reported  from  that  committee  to  the  Senate  on  .June  18,  with 
anuMiduutnls,  but  with  the  suju;ar- bounty  provision  nnchan<red,  ((xcept  that  it  was 
nuule  to  apjily  to  ma])le  suj^ar.  No  reference  was  made  to  recipnxMty.  That  feature 
was  also  omitted  tioin  a  Hcc()nd  revision  of  the  bill  by  the  Committee  on  Finance, 
whi(di  was  reported  back  to  the  S(Miate  on  S<^i>tember  6. 

On  S((ptomber  10  the  bill  jiassed  the  Senate,  and  it  then  for  the  (irsttiine  contained 
the  reciprocdty  provision,  which  was  inserted  at  the  instance  of  .Mr.  JMaine,  the;  Sec- 
retary of  State,  HUpportsd  by  rresident  Harrison.  In  the  bill  as  it  j)a>Hed  the  Senate 
the  House  bounty  of  2  cents  a  pound  on  sn^ar  was  left  unchanjjed,  except  that  the 
ma])lc-8n<;ar  amendment  was  a]>proved.  In  the  conftatsnce  committee  the  Senate 
rcci]irocity  amendment  w.is  approved,  but  the  suf^ar  bounty  waa  chauf^cd  so  that 
the  itrodiK^ers  of  sujjar  testinj^  !)(»  dei;recs  and  upward  should  receive  2  cents  a 
]ionnd,  while  the  producers  of  su,i;ar  testini^  less  than  !K)  dej^rees  and  not  less  than 
80  dejjrees  should  rectd ve  1  'j  cents  a  jxiund.  In  this  form  the  bill  passed  both  1  louses 
and  became  a  law  on  October  1,  18i)(),  takinj;  etfect  on  October  6  of  the  same  year. 

Soon  after  thetarilf  act  of  18!I0  went  into  elleet  Tresident  Harriso/i  opened  nef^o- 
liations  with  various  foreign  count rit's  "proihudnff  and  oxportinf^  sugars,  molasses, 
collee,  tea,  and  hides,"  and  durin;;  the  years  18ill  and  1892  nniny  recii)ro(ity  treaties 
were  ne^rotiated.  The  principal  treaties  were  with  sngar-i)roducinjj;  countries. 
Most  of  the  trc^aties  were  with  South  American,  Central  American,  and  West  Indian 
countries  or  their  Euroj)oau  representatives.  With  Mexico  and  the  Dominion  of 
Canada  treaties  were  not  negotiated.  All  these  treaties  were  abrogated  by  the 
terms  of  tiie  tariff  act  of  1891.  None  of  them  were  in  force  four  years;  some  were  in 
force  less  than  thrc«*  years. 

Wo  lii've  obtained  from  the  Bureau  of  Statistics  of  the  Treasury  Department  a 
statement  showing  the  total  exports  of  domestic  merchandise  for  live  selected  jjerlods 
from  the  United  States  to  the  various  (sountries  south  of  us  with  which  reciprocity 
treaties  wer<»  negotiated  under  the  tariff  act  of  181)0,  and  also  to  Canada  and  Mexico. 
These  ]>eriods  cover  two  fiscal  years  ])rior  to  the  passage  of  that  act,  two  fiscal  years 
during  which  all  the  reciprocity  treaties  were  in  force,  and  one  fiscal  year  during 
which  the  treaties  were  in  force  only  two  months.     The  statement  is  as  follows: 

Table  showiiiii  the  total  viiliir  of  the  exports  of  domesUc  merchandise  from  the  United  States 
to  I'urUiHs  forv'ujn  countriex  in  the  fiscal  years  endinfj  with  June  30,  1SS7, 1890, 1S93, 1894, 
and  1895, 


Country. 


Gnatomala 

HoiidnraB 

Kicaraniia 

SalviiilDr 

ISritJHh  \Vo8t  Indies. 

Saute  I'DTiiinKO 

Cuba 

Puerto  lliv'o 

Brazil 

BritiuU  G  uiaiia 

Total 

Poiiiiiiiun  of  Canada 
Mexico 


1887. 


$553, 179 

4'J,'i,74l 

701.151 

477,  125 

6,  405,  ullO 

1.014,414 

10,  i:w,  I'.io 
1,707,  i;4 1 
8,071,fi.53 

1, 42;i,'Jii 


30,  977,  075 

32,  32K,  03(i 

7,2(i7,  129 


1890. 


$1,  326,  388 

522,  (131 

1,270,073 

88(i,  231 

8,  074,  433 

92(i,  051 

12,  tifii),  509 

2,  247,  700 

11,  902,  49C 

2,011,122 


41,8;i7,  234 
37,  327,  963 
12,  006, 108 


1893. 


$1, 


1, 
7, 
1, 

2.3. 
2, 

12, 
1, 


713, 142 
442,  907 
812,054 
118.  054 
912,341 
108,  733 
004. 094 
502,  788 
;i39,  584 
053,012 


53,  507,  309 
43, 020,  840 
18,891,714 


1804. 


$1 


610, 509 

.')37,  463 

814,012 

1,0.')9,292 

8,  387,  220 

1,715,782 

19,  855,  237 

2,  705,  646 

13,827,914 

2, 360,  938 


52,  874,  013 
50, 040,  870 
12,  441,  805 


1895. 


$2, 596, 032 

615,009 

967,  329 

1 ,  236,  595 

7,  667,  .561 

1,318,919 

12,  533,  260 
1,  820,  203 

15,  1.35, 125 
1,  684,  83C 


45,574,863 
47,  787,  501 
14,  i)82, 484 


This  statement  shows  that  our  merohandiso  exports  to  the  countries  south  of  us 
increased  over  35  per  cent  from  1887  to  1890  without  reciprocity;  increased  about  28 
l)er  cent  from  1890  to  1893  under  reciprocity ;  declined  slightly  from  1893  to  1894 
under  reciprocity;  and  declined  over  13  per  cent  from  1894  to  189.5  with  but  two 
months  of  reciprocity.  The  decline  in  the  exports  in  the  fiscal  year,1895  was  chiefly 
due  to  the  insurrection  in  Cuba,  but  this  influence  did  not  cause  the  decline  in  the 
exports  to  that  islaud  in  the  fiscal  year  1894,  during  which  the  reciprocity  treatjet* 
were  in  force. 


EEOIPROCITY    STATKMKNT8. 


3i)9 


iduHtry. 
1(3  coun- 
try, "out 
u)  tiiiiu- 

.iuimI  the 
iei»eale<l 
11  ty  "t"  'J 
lit  tiiado 
vith  the 
itteo  on 
1«,  with 
it  it  was 
t  ftjaturo 
Finance, 

ontainod 
th<!  Siif,- 
10  Senate 
that  the 
K)  SScnato 
il  so  that 
2  cents  a 
less  than 
thlloiisea 
i«  year, 
lied  ncf^o- 
niolassos, 
,y  treaties 
Countries, 
sst  Indian 
minion  of 
d   hy  the 
lie  wore  iu 

irtinent  a 
L'd  periods 
jciprocity 
d  Mexico. 
seal  years 
ar  dining 
Hows; 

\ited  States 
[S93, 1S94, 


1895. 


$2, 59C, 032 

615,00!) 

967,  :V19 

1 ,  236, 595 

7,  667,  561 

l,;il8,919 

12,  51)3, 260 
1,820,203 

15,135,125 
1,684,83C 

45,574, 803 
47,  7H7, 501 
14, 582, 484 


l)uth  of  us 
Il  about  28 
)93  to  1894 
Ih  but  two 
las  chiefly 
line  in  the 
ly  trefttjett 


Tlio  Htatomont  also  shows  thiit  our  exports  of  doiiiostic  nierchiiiidiso  to  Canada  and 
Mexiro,  witii  wiiicli  coiuitrii'H  ri'ciprocity  Irealies  wore  not  iif;;otiated  under  tho 
taritr  act  of  IHltO,  liavi-  iiicrcaHod  very  rapidly  since  18S7,  altliongli  there  was  a 
decline  in  our  exjioi  ts  to  Mexico  in  1891  and  to  Canada  in  18(»r).  To  both  countries 
the  increase  in  our  exports  since  18H7  has  liccn  more  marketl  than  the  iiurrease  in  our 
exjJurlH  to  the  recijirocity  coiiutrioH  soutli  of  us  diiriiij.;  the  sanu^  p  liod. 

The  talihi  which  wo  have  {^ivcii  surely  docs  not  i)r(:vo  that  tlu!  adoption  of  a  reci- 
procity jiolicy  in  tho  tariff  lo;;is]ation  of  1890  materially  iiu^roascsd  our  total  export 
trade  with  recijirocity  treaty  countries  to  the  south  of  us,  if  it  increased  this  trade 
at  all.  If  our  export  trade  with  Canada  and  Mexico  increased  withiuit  recijirocity 
more  lapidly  from  1887  to  1H9I  than  our  (ixport  trade  with  the  reciprocity  (Miiintrics 
nicntioncd  in  the  table,  it  would  sc(mii  to  be  reasonable  to  suppose  that  some  other 
cause  or  c;iusc8  tlian  rtn-iprocity  contrihutcd  to  the  ciili!r>;cmcnt  of  our  exports  to 
tho  reciprocity  countries.  I'pon  caitd'iil  iiKjuiry  it  may  bo  Ibiiiid  thatr  we  ha\(i  been 
increasiiifj  our  export  trade  with  all  the  countries  mentioned.  Canada  and  Mexico 
includct!,  liccaiis(i  of  the  tixtreinely  low  prices  of  our  iifjriiMilt  iiral  and  manufactured 
products  in  recent  years,  ami  because  also  of  their  (excellent  ((iiality. 

The  course  of  oiirexiiort  trade  iu  iron  and  steel  ami  mamifacluresof  iron  and  steel 
in  r(!ccnt  years,  to  which  Wc  will  be  (excused  for  miiKiiij;  sjtccial  reference,  docs  not 
indicate  that  this  branch  of  our  exjxirt  trjide  has  been  much  bcneti'd  under  tlie 
late  reciprocity  treaties.  'I'lie  countries  south  of  us  with  which  w<i  have  had  ro(;i- 
jirocity  treaties  are  snuill  biiycus  of  iron  cud  steel  since  their  railroad  systems  have 
becui  built.  Without  goincr  into  minute  details,  tht;  subjoined  tiible  j^ives  tho  valno 
of  our  exports  of  iron  and  steel  and  of  manufactures  of  iii/ii  ;iud  stt^cl  to  all  c<)untri((s 
in  the  caliMidar  years  from  1887  to  1S9.1,  not  including a^iricultural  imi)lcineiitr.  The 
years  iiHUitioued  cover  substantially  the  same  period  of  nine  years  as  that  referred 
to  in  the  table  already  given. 


Tears. 

Exports. 

Years. 

Exports. 

Years. 

Exports. 

1887 

$10,  235,  922 
19,  578,  489 
23,712,814 

1890 

$27,000,134 
30,  730,  507 
27, 900, 802 

1893 

$30, 1, 19,  303 
29,  943,  729 

1HH8 

1801 

1S<I4 

1S89 

1892 

1895 

35,  002,  838 

From  this  tabic  it  will  bo  soon  thnt  onr  exports  of  the  articles  mentioned  increased 
over  66  per  cent  iu  the  four  years  from  1887  to  1890  without  reciprocity;  that  from 
1891  to  1894  there  was  an  actual  decrease  under  reciiuocity ;  and  that  in  1895  there 
Avas  an  increase  over  1891  of  over  17  ])er  cent  Avithout  reciprocity. 

It  is  a  jiertineut  and  an  important  in(|uiry  wlmthcr  this  country  has  been  injured  in 
any  way  by  the  ado])tion  of  tho  reci]>rocity  policy  of  1890.  We  think  that  tlui  facts 
warrant  the  conclusion  that  wc  have  been  very  jiroatly  injured  by  the  joint  measures  of 
reciprocity,  free  sugar,  ami  a  sugar  bounty.  The  (Joveriiinent  h:is  lost  by  this  jiolicy 
many  millions  of  dollars  of  re\(!nuo  that  it  greatly  nerdcd.  The  tarili'  act  of  1890 
was  in  jiart  entitled  '•  an  act  to  reduce  the  revenue,"  and  that  result  it  accon>;,',lBi.c'1. 
Wise  as  was  this  act  in  nearly  every  particular,  we  have  always  contcudecl  that  it 
was  most  unwise  in  abandoning  the  sugar  duties  embodied  in  previous  tarilf  legisla- 
tion and  which  had  been  a  source  of  large  revenue  to  the  Treasury,  and  providing  in 
their  stead  for  the  ])ayinent  of  a  sugar  bounty. 

It  is  true  that  these  two  features  of  tho  act  in  question  might  have  been  adopted 
if  a  recijirocity  policy  had  never  boon  jirojiosed,  but  having  jiassed  tho  House  they 
])aved  the  way  for  the  recijirocity  amendment  in  the  Senate;  indeed  tlu^y  w(!re  tho 
direct  cause  of  it.  There  could  havi?  been  no  recijirocity  treaties  without  frt;e  sugar. 
Nor  can  there  bo  any  restoration  of  recijirocity  without  free  sugar,  and  frco  sugar 
under  a  Kepublican  administration  of  the  Covornment  means,  as  we  have  already 
said,  a  sugar  bounty. 

From  the  annual  reports  on  connnercc  and  navigation  of  the  Bureau  of  Statistics 
of  the  Treasury  Dejiartmeut  we  have  comjiiled  the  following  suggestive  table  show- 
ing tho  receipts  of  the  Treasury  from  dnti(!s  on  sugar  in  the  three  tiscal  years  imme- 
diately preceding  tho  enactment  of  the  tariif  act  of  1890  and  iu  tho  three  full  fiscal 
years  suceediug  its  enactment: 


Fiscal  years. 

Duties  colluctcd. 

Fi.scal  yo.irs. 

Duties  collected. 

1888 

$,50,647,014.17 
54,  890,  437.  3f-. 
53,  985,  873.  8.> 

1 

'  1892.. 
1893 

$76, 795. 14 

1889.  .  ..                                 

103  950  25 

1890 

1804 

250, 763. 63 

1 

!<! 


i       1 

'     ii 


4-— i- 


400 


RECIPROCITY   CTATEMENTS. 


1. '-!(!■ 

"I;! 

■  i  i 


It  is  lair  to  assumo  that  the  total  loss  of  revenue  to  the  Treasnry  from  sugar  dur- 
ing tho  nliiio.st  luur  years  in  which  the  tariflt'  act  of  1890  was  in  force  exceeded 
$2()0,(X)(),(I()(I  and  <iveiaKcil  above  $50,000,000  annually 

But  tlie  liarni  dune  to  the  Treasury  by  tlie  repe"'  of  the  sugar  duties  is  not  all  told 
in  the  (igiires  given  above.  To  the  loss  of  the  revenue  from  sugar  duties  must  be 
added  the  sums  annually  taken  directly  from  tlie  Treasury  to  ])ay  sugar  bouiities 
in  the  i^scal  years  18'J2,  1H93,  and  1891,  and  the  I'raction  of  the  fiscal  year  1895, 
extending  from  July  1  to  August  28,  1894.  TliGse  pavments  were  as  follows:  1892, 
$7,312,077.79;  1893,  *9,375, 130.88;  1894,  $12,100,208.89;  1895,  $966,185.84;  total, 
$29,783,(i03.40. 

Tlie  fatal  error  that  is  en1)ndiod  in  the  reciprocity  policy  was  its  abandonment  of 
the  poli(!y  adopt(?d  l.y  ilie  fathers  of  the  Rei-ublic  of  imposing  duties  at  the  custom- 
hoa.se  that  should  be  uniform  iii  their  application  to  the  products  of  all  countries. 
In  lieu  of  this  policy,  whicli  was  establish(!d  in  onr  first  tarilF  act,  and  which  had 
been  sanctified  l)y  one  humirtMl  years  of  8uc(!ess('iil  trial,  there  was  substituted  the 
Ibitisli  policy  of  commercial  treaties,  and  tliis  was  done,  not  to  protect  and  preserve 
the  houK!  market  for  home  producers,  whi(di  is  the  very  css<^nce  of  the  protective 
]iolicy  of  the  fathers,  but  -iiat  foreign  markets  of  less  value  than  tlie  trade  of  one  of 
our  great  St.ites  might  be  i^aptnred.  The  old  school  of  iirotectionists  always  taught 
that  foreign  markets  werci  to  b'j  cjiptured  by  the  excellence  and  clieaj)uess  of  our 
products  after  prote<'tion  hi;d  built  up  our  inilustrics.     We  prcftsr  the  old  way. 

The  foregoing  I'acts  and  opinioirH  are  ])resented  solely  in  our  own  behalf^  and  not 
iu  behalf  of  the  Americau  Iron  and  8teel  Ausoidation. 


The  Cine'mnaH  Corrvi/atinp  fompavy,  ru/iui,  Ohio. 

2.  Corriifiiited  iiiid  otlicr  forms  of  iron  and  «tecl,  giUvanized  and 
])aintod  rootiuj;',  siding,  ceiling,  etc. 

3.  Cuba  and  Mexico. 

4.  We  liave  endeavored  to  extend  onr  foreign  trade  by  advertising 
in  newsi)ai)ers,  by  mailing  catalogues  and  circulars  to  prospective  buy- 
ers, ami  by  personal  representiition,  ])rincipall5'  tlirongli  syndicated 
representatives,  and  in  one  case  in  Cuba,  through  the  iindersigned. 
We  have  had  fair  success  in  Mexico,  but  little,  if  any,  in  the  Houth 
Ameiican  countries,  and  some  succ^ess  in  Cuba,  but  under  the  reciproc- 
ity treaty  oidy. 

5.  We  are  not  aware  of  nny  such  discriminations. 

6.  We  are  not  aware  of  any  except  the  abrogation  of  reciprocity 
treaties. 

7.  We  do  not  think  that  any  reduction  of  customs  imjwsed  by  for- 
eign nati(uis,  which  bore  e<iually  on  all  other  nations,  would  be  of  any 
material  a<lvantage  to  us  in  our  line,  ex<'e]»b  i>ossibly  by  cheai)ening 
such  goods  to  them  and  thus  enabling  them  to  buy  more. 

8.  We  have  no  foreign  business  tu)w  except  with  JMexico,  which  is 
about  the  same  now  as  six  years  ago. 

9.  Selling  ])rices  are  lower  than  those  of  six  years  ago. 

10.  Foieign  competitors  have  advant.'ges  over  us  in  lower  cost  of 
hibor,  in  the  cost,  of  their  goods,  and  as  generally  as  we  can  express  it, 
freights  are  about  one-half  that  they  are  from  this  country  to  foreign 
selling  points. 

11.  We  can  always  compete  with  fo»'eign  merchants  in  quality,  but 
when  sales  are  dei)endent  on  prices  only,  we  can  iu>t  <N)mpete  with  for- 
eign merchants.  The  basis  on  which  we  get  orders  from  Mexi(!o,  for 
exai  |)le,  is  almost  t-'olely  dependent  on  their  being  able  to  get  such 
goods  as  we  nnike  from  this  country  nu)re  promptly  than  they  can  from 
foreign  coimtries. 

12.  The  general  effect  of  the  reciprocity  treaties  was  favorable  to  the 
exjwrt  trade  of  the  ITnited  States,  and  to  an  extent  that  can  not  be  too 
strongly  expressed.    The  ell'ci't  of  the  repeal  was  immediate,  and,  so 


I 


RECIPROCITY   STATEMENTS. 


401 


lugar  Avr- 
oxceeded 

ot  all  told 
H  must  b© 
•  bounties 
yoar  1895, 
■)W8:  1892, 
84;    total, 

ionment  of 
\e  custom- 
countries, 
whicli  bad 
ituted  tlio 
id  preserve 
protective 
lo  of  one  of 
iiyb  taujj;bt 
uess  of  our 
way. 
,lf,  aud  not 


fjir  as  our  observation  goes,  to  cause  a  reduction  in  volume  of  such  trade 
to  equal  at  least  DO  per  cent. 

We  ii)<  looc  herewith  copy  of  letter  addressed  in  1894  to  W.  C. 
Brown,  treasurer  of  the  Isaac  Ilarter  Company,  Fostoria,  Ohio,  express- 
ing our  views  on  this  point  more  in  detail. 

13.  We  do  most  heartily  favor  the  application  of  the  reciprocity 
principle  to  the  tariff'  legislation,  and  the  enactment  of  the  general  law 
authorizing  the  President  to  negotiate  reciprocity  treaties  with  both 
Fairopean  and  American  nations  as  far  as  possible.  We  consider  the 
juinciple  of  reciin-ocity  as  being  the  wisest  and  most  eftective  principle 
ever  introduced  in  the  commercial  legislation  of  the  CTnited  States,  and 
the  only  ])rin('iple  wliicli  will  enable  us  eventually  to  capture  i.ur  full 
share  of  the  markets  of  the  world.  The  market  of  the  United  States  is 
ours,  and  should  be  forever  preserved  so,  except  in  so  far  as  it  is  made 
to  our  interest  to  make  concessions,  and  it  is  the  most  shallow  idea 
ix)ssible  to  concede  our  unirkets  without  consideratio:i  t'»erefor,  aud  the 
principle  of  reciprocity  will  protect  us  in  this. 


•mm 


lized   and 


dvertising 
ctivo  buy- 
yndicatcd 
lersigiied. 
ho  South 
reciproc- 


eciprocity 

Ld  by  for- 

|be  of  any 

feapening 

which  is 


PiQUA,  Ohio,  Octoher  19, 1S94. 

Dh.An  Sir:  Your  eatoomed  favor  of  the  18th  is  received  to-day,  and  we  l)egto  str.te 
that  before  the  reciprocity  treaty  between  Sj)iiin  and  tlie  United  States  went  into 
etlect,  we  were  never  enabled  to  sell  iiny  of  our  nuiterial  in  Cuba  although  we, 
made  strenuous  etlorts  ibr  years  previous.  After  the  recii)rocity  went  into  effect, 
we  sold  ;SO,H<)()  {;;alvanized  tiles,  amounting  to  $8,119.98  in  value. 

Toward  the  latter  part  of  the  duration  of  the  reciprocity  treaty,  however,  com- 
petition arose  from  the  Eastern  manufacturers,  by  which  they  iuppliad  very  largo 
quantities,  amouTiting  to  many  times  the  amount  that  we  sold,  as  they  had  the 
advantage  of  cliea}>er  freights  to  Habana  and  other  Cuban  j)oint8. 

The  principal  shipniencs  were  made  from  New  York,  and  if  you  could  have  some 
one  attend  to  it  no  doubt  you  could  get  from  the  custom-house  there  the  records  of 
the  principal  shipments  during  the  reciprocity  treaty  to  Cuba  f  nd  other  points. 

Wlu'Ti  the  writer  was  in  Ilabana  u))out  two  years  ago,  he  was  told  that  all  the  Hour 
ustd  in  Cuba  was  then  coming  from  the  United  States,  and  the  same  was  true  of  all 
articles  of  cast  ami  wrought  iron  and  steel,  which  i)reviously  came  principally  from 
England.  One  of  the  most  intelligent  merchants  in  Hibana  informed  the  writer  that 
tJie  imports  for  any  given  period,  under  reciprocity  treaty  in  Cuba,  amounted  to 
more  than  the  imports  from  the  United  States,  all  South  America,  Central  America, 
aud  iSlexico,  some  of  which  couut/ries  had  no  reciprocity  treaty  with  this  couutry. 
Yours  truly, 

J.  G.  BATfELLK,  Seoretary. 

W.  C.  BuO"  /N,  IVeasurer  The  Iiaac  Harter  Co.,  Fostoria,  Ohio, 


11 


^r  cost  of 
[xpress  it, 
lo  foreign 

Ifility,  but 
with  i'or- 
ji^xico,  for 
[get  such 
lean  from 

l)le  to  the 
lot  l)e  too 
„  and,  80 


The  Scidt'l  &  Hastings  Company,  Wilmington,  Del, 

2.  Charcoal  iron  p'.atea  and  other  plate  iron. 

3.  $L'3(),00().  150  to  200.  $200,000  to  $300,000,  according  to  state  of 
business. 

4.  Exclu.^ively  at  home. 
10.  About  tw«)  thirds. 

13.  None.  Our  work  is  largely  a  specialty  and  on  orders  for  quick 
delivery. 

l.s.  liirtect  undoubtedly  favorable  and  repeal  unfavorable,  speaking 
in  a  general  way,  but  neither  atl'ects  us  directly. 

20.  Ves. 

11.  Kep.  22(}3 20 


■  i  ;, 

lis 

ii 


"B 


402 


RECIPROCITY   STATEMENTS. 


B.  D.  Wood  &  Co.,  Philadelphia,  Fa. 

Permit  us  to  say  that  if  it  is  possible  to  reestablish  reciprocity  as 
was  the  case  a  few  years  ago,  nothing  conld  be  done  wliich  would  more 
facilitate  the  expansion  of  the  export  trade  of  our  particular  branch  of 
manufactures. 

As  to  cost  of  production  in  this  country,  we  are  almost  on  the  same 
level  as  the  manufacturers  abroad,  and  we  only  need  some  such  assist- 
ance as  reciprocity  to  attract  to  this  (tountry  a  very  large  volume  of 
business,  and  therefore  earnestly  hope  that  a  movement  toward  this 
end  may  take  shape. 


\  i     I  .      •■     »      I  -•  ( 


MACHINERY. 


■'  f 


CIRCULAR  OF  INQUIRY  TO  MANUFACTURERS. 

Committee  on  Ways  and  Means, 

HoiTSE  OF  Representatives, 
Washimjton,  J).  C,  March  4,  1896. 
Sir:  In  order  that  they  may  give  more  intelligent  consideration  to 
pending  and  proposed  legislation,  the  subconunittee  of  the  Committee 
on  Ways  .and  Means  of  the  House  of  Representatives  in  charge  of  bills 
relating  to  reci[)rocity  arrangements  and  commercial  treaties  would  be 
greatly  obliged  if  you  would  forward  them,  at  your  earliest  conven- 
ience, your  views  and  suggestions,  and  such  intbrmatiou  as  you  are 
able  to  furnish  upon  the  following  points,  namely: 

1.  Give  full  name  and  address  of  firm  or  comi)any. 

2.  Lines  of  nmnufacture. 

3.  Amount  of  capital,  number  of  persons  employed,  and  ^'alue  of 
annual  product. 

4.  Do  you  lind  your  market  at  home  or  abroad,  and,  if  both,  in  what 
l>roportion  ? 

5.  Do  you  sell  direct  to  foreign  dealers  or  through  commission  houses'? 

6.  Have  you  made  any  direct  ettbrt  to  extend  your  foreign  tr.ade; 
and  if  so,  by  what  means,  with  what  success,  and  in  what  countries? 

7.  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreigr  country  that  restrict  or  prevent  the 
extension  of  yvur  trade;  and  if  so,  can  you  suggest  any  means  by 
which  t'>ey  may  be  removed? 

8.  Whai  chaii  es  have  recently  occurred  in  the  taritt's  of  foreign 
countries  so  far  as  they  relate  to  your  lines  of  nmnufacture? 

9.  How  far  would  the  removal  or  reduction  '^*'  the  customs  duties 
imjMised  by  Ibreign  mitions  ujton  the  merchandise  in  which  yo'*  deal 
aid  in  the  extension  of  your  export  trade? 

10.  What  is  tiie  output  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  How  does  the  present  cost  of  i)roduction  compare  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  land? 

12.  How  do  present  selling  prices  coutpare  with  those  of  six  years 
agof 

13.  What  competition  do  y<m  meet  with  from  foreign  manufacturers, 
and  in  what  imirkets? 

14.  What  advantages  <lo  your  foreign  competitors  have  over  you  in  the 
cost  of  manufacture  and  in  transportation  cliarges  to  foreign  markets t 

15.  To  what  extent  can  ybu  compote  with  foreign  manul'acturers  in 
quality  and  prices! 

403 


Mi 
I 


404 


RECIPROCITY    STATEMENTS. 


Is:- 


16.  Has  the  total  product  of  the  United  States  in  your  line  of  manu- 
facture increased  or  decreased  during  the  last  six  years? 

17.  Wliat  proi)ortion  of  the  total  present  and  possible  output  in  your 
lines  of  manufacture  in  the  United  States  cati  be  absorbed  by  tlie 
domestic  market;  and  what  would  be  your  estimate  of  the  natural  sur- 
plus for  export  if  all  manufacturers  in  your  lines  were  producing  to 
their  full  capacity?  (The  purpose  of  this  inqu'ry  is  to  secure  as  accu- 
rate an  estimate  as  possible  of  the  necessity  for  new  foreign  markets  to 
the  manufacturers  of  the  United  States.) 

18.  Was  the  general  effect  of  the  reciprocity  treaties  made  in  1890 
favorable  or  unftivorable  to  the  export  trade  of  the  United  States,  and 
what  was  the  effect  of  their  repeal? 

19.  What  was  the  effect  upon  farm  products  particularly? 

(If  your  replies  to  inquiries  17  and  18  are  based  upon  actual  experi- 
ence, please  give  details  as  fully  as  possible.) 

20.  Do  you  favor  the  application  of  the  reciprocity  principle  to  future 
tariff  legislation,  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible? 

These  inquiries  have  been  forwarded  to  several  hundred  persons, 
firms,  and  corporations  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  re[)hes 
are  intended  for  i)ublication  with  a  report  which  the  Committee  on 
Ways  and  Moans  will  make  to  the  House  of  Eepresentatives ;  but,  if  so 
desired,  any  information  received  will  be  regarded  as  confidential.  All 
values  should  be  expressed  in  United  States  gold,  and  all  quantities  in 
our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  inquiries  will  be  appreciated. 
I  am,  sir,  your  obedient  servant, 

A.  J.  Hopkins,  Chairman, 


EEPLIES. 


Tlie  Detroit  Steel  and  Ispring  Company, 

The  value  of  reciprocity  arrangements  between  our  Government  ami 
other  nations  would  be  felt  indire(!tly  rather  more  than  directly. 

We  i>re  one  of  the  largest  producers  of  railroad,  engine,  and  car 
springs.  This  product  is  sold  largely  to  railroads  to  whom  we  give 
freight  business,  and  the  advantage  which  we  have  over  our  competi- 
tors in  the  trade  of  our  locality  lies  in  the  fact  that  we  are  able  to  recip- 
rocate for  any  preference  or  favor  shown  to  us. 

We  are  also  i)roducer8  of  material  used  by  the  agricultural  imple- 
ment makers,  who  are  becoming  exporters  of  considerable  nuignitude, 
so  that  any  arrangement  for  the  increase  of  their  export  business  would 
be  at  once  telt  by  our  company.  The  value  of  reciprocity  can  hardly  be 
estimated  between  nations,  for  its  benefit  in  local  trjide  is  so  great. 

We  are  unqualifiedly  in  favor  of  reciprocity  between  our  Govern- 
ment and  other  countries,  believing  that  the  benefit  derived  will  be  felt 
by  every  one  of  our  500  employees  as  well  as  the  stockholders  of  our 
company. 


RECIPROCITY    STATEMENTS. 


405 


William  F.  Draper,  House  of  Eepresentatives  United  States. 

Eeciprocity,  while  in  my  view  most  desirable  with  countries  like  the 
South  American  whose  products  are  different  from  our  own,  would 
probably  be  of  more  value  for  farm  products  than  for  the  general  man- 
ufacturing products  of  the  country,  unless  the  proi)osed  treaties  con- 
tained differential  duties  against  Englandas  compared  with  this  country. 

The  fact  is  that  in  most  manufacturing  lines  the  English  can  make 
cheaper  goods  of  the  same  quality  than  we  can,  and  that  of  itself  will 
give  them  the  foreign  market,  other  things  being  equid. 

WILLIA2H  F.  Draper. 


r 

r 
r 


George  Draper  &  Sons,  ffopedale,  Mass. 

Ee]dying  to  your  circular  letter  of  March  4,  would  say  that  the  firm 
of  George  Draper  &  Sons  a  '  s  selling  agent  for  the  Sawyer  S]»indle 
Company,  Northrop  Jjoom  Oomixuiy,  Hoped.ile  Machine  Company,  and 
Dutcher  Temple  Company,  and  manufactures  goods  on  a  small  scal<'. 
Tiie  Ssiwyer  Spindle  Company  and  Xorthrop  Loom  Couii)any  do  not 
manufacture  goods,  and  the  ((uestions  below  answeied  cover  the  prod- 
ucts of  the  IIoi)edale  Machine  (Company,  Dutcher  Temple  Comi)any,  and 
the  manufacturing  plant  of  George  Draper  &  Sons. 

2.  Cotton  nuichinery,  i.  e.,  machinery  used  in  the  manufacture  of  cot- 
ton yarns  and  cloths. 

3.  Amount  of  capital  invested  in  business,  $1,50(),0()0;  number  of 
persons  employed,  about  900;  value  of  annual  product,  §1,700,000. 

4.  Our  entire  market  is  in  the  United  States. 

5.  No  sales  made. 

6.  It  would  be  useless  for  us  to  attempt  to  make  foreign  sales,  since 
tlie  cost  of  ])roducts  similar  to  ours,  and  only  slightly  inferior,  can  be 
produced  by  English  machine  shops  at  nuich  less  than  our  cost  of  pro- 


'avor  of 


English 


duction,  and  freights  and  banking  facilities  are  in 
shops. 

7.  On  account  of  the  facts  stated  in  question  6,  we  have  never 
attempted  to  sell  goods  outside  of  the  Uidted  States. 

8.  We  have  no  knowledge  of  the  matter. 

9.  If  any  change  of  tariffs  in  foreign  countries  were  to  be  so  ma<le  as 
to  admit  English  built  machinery  on  the  sanui  terms  as  ours,  it  couUl 
not  possibly  affect  our  making  sales,  if,  on  the  other  Hand,  changes  of 
tarifi" of  foreign  countries  could  be  made  on  the  lines  of  reciprocity  with 
the  United  States  aione,  and  such  changes  would,  through  differenfial 
import  duties  of  such  foreign  countries,  substantially  offset  the  differ- 
ence in  cost  between  English-made  machinery  and  our  own,  it  would, 
we,  think,  increase  our  trade. 

10.  The  output  of  our  establishment  six  years  ago  was  $1,;}7.'),000; 
last  year,  $1,700,000.  Last  year,  however,  we  aclded  a  new  line  of 
machinery  to  our  output,  of  which  we  have  sold  about  $400,000  worth, 
so  that,  comparing  the  sales  of  the  two  years,  without  reference  to  the 
added  line  of  nmchiuery,  we  sold  $75,000  worth  more  of  goods  six  years 
ago  than  last  year. 

11.  The  cost  of  production  is  somewhat  less  than  six  years  ago,  the 
decrease  being  in  cost  of  raw  mateiial,  ])rincipally  pig  iron.  We  employ 
more  men  now  per  $1,000  of  salos  than  we  did  six  years  ago,  at  some- 
what less  wages  i)er  mau. 


lii 


406 


REUIP.COCITY    STATEMENTS. 


12.  Present  selling  prices  are  somewhat  lower  tlian  six  years  ago;  we 
can  cot  make  an  absolute  comparison,  as  we  Lave  materially  altered  and 
improved  and  changed  our  products. 

13.  Machinery  competing  with  that  built  by  us  is  sold  in  the  American 
market,  and  establishes  the  price  for  many  lines  of  cotton  machinery 
in  the  United  States,  i.  e.,  cotton  machinery  can  be  delivered  in  the  mill 
(the  common  form  of  delivery)  at  less  cost  to  the  English  builder  than 
to  us,  after  having  paid  the  duty  and  freight  charges. 

11.  Our  foreign  competitors  can  produce  machinery  of  given  type  for 
much  less  than  our  costs,  and  their  freight  charges  to  foreign  countries 
are  lower  than  ours. 

15.  We  excel  foreign  manufacturers  in  the  quality  of  our  goods,  but 
our  prices  laid  down  at  points  outside  of  the  United  States,  on  even 
terms,  would  be  much  higher,  even  though  we  are  willing  to  sell  on  a 
lower  margin  of  profit. 

16.  The  total  product  of  the  United  States  in  our  line  of  manufacture 
remains  substantially  stationary.  There  are,  we  think,  the  same  number 
of  concerns  in  business  in  our  line  now  as  then;  some  of  these  concerns 
have  increased  their  output  and  others  decreased. 

17.  Our  general  estimate  is  from  one-sixth  to  one-quarter  of  all  cotton 
machinery  put  into  American  mills  to-day  is  made  in  England.  The 
present  American  builders  of  cotton  machinery  could  easily  increase 
their  output  so  as  to  make  what  is  needed  to  fill  American  mills  if  the 
price  of  the  English  machinery  was  not  cheaper. 

18.  We  believe  that  the  general  effect  of  the  reciiirocity  treaties  made 
in  1890  was  favorable  to  the  export  trade  of  the  United  States;  that 
indirectly  the  effect  was  favorable  to  us  in  that  it  helped  our  customers, 
the  cotton  mills. 

19.  We  know  almost  nothing  as  to  the  effect  upon  farm  products. 

20.  If  to  the  application  of  the  reciprocity  principle  can  be  added 
suitable  protective  laws,  so  tl'at  the  United  States  can  make  fair  recip- 
rocal arrangements,  we  believe  in  the  principle. 


Gates  Iron  Works,  Chicago, 

2.  Manufacturers  of  rock  and  ore  crushing  and  general  mining 
machinery. 

3.  Canada,  Mexico,  the  republics  of  South  and  Central  America, 
British  Isles,  France,  Belgium,  Sweden,  several  colonies  of  Australia, 
Tasmania,  New  Zeahand,  and  all  the  mining  countries  of  South  Africa. 

4.  We  have  made  great  effort  to  extend  our  foreign  trade,  chiefly  by 
resident  agents  in  Canada,  Mexico,  England,  South  Africa,  and  Aus- 
tralia. Our  trade  in  all  of  these  countries  is  growing,  but  our  largest 
success  has  b^en  obtained  in  South  Africa,  chiefly,  of  course,  in  the 
South  African  Kepublic. 

5.  We  do  not  know  of  any  special  discrimination  in  the  tariff  laws  in 
the  foreign  countries  that  are  any  greater  obstacles  to  the  manufac- 
turers of  the  United  States  than  to  the  manufactui'ers  of  other  coun- 
tries. The  tariff  of  30  per  cent  imposed  by  Canada  on  mining  machinery 
cuts  us  off  from  a  large  market  close  at  home,  and  we  believe  that  the 
restriction  is  felt  as  keenly  by  the  mining  interests  in  Canada  as  by 
the  manufacturers  on  this  side. 

0.  "*Ve  know  of  no  recent  changes  in  the  tariff'  of  foreign  countries. 


igo;  we 
red  and 

merican 
.cbinery 
the  mill 
ler  than 

type  for 
ouuti'ies 

ods,  but 
ou  eveu 
sell  ou  a 

ufactnre 

I  uumber 
ioncerns 

II  cotton 
id.  The 
increase 
lis  if  the 

ies  made 
tes;  that 
istomers, 

lucts. 
)e  added 
lir  recip- 


minmg 

America, 
ustralia, 
I  Africa. 
Iiietly  by 
Ind  Aus- 
largest 
,  in  the 

laws  in 
bauufac- 
|cr  coun- 
ichincry 
J  that  the 
|la  as  by 

intries. 


RECIPROCITY    STATEMENTS. 


407 


7.  The  removal  of  the  Canadian  tariff  on  our  class  of  machinery 
would  largely  increase  a  profitable  field. 

8.  The  volume  of  our  total  business,  as  compared  witii  that  of  six 
years  ago,  is  nearly  three  times  as  great. 

9.  The  present  prices  are  not  more  than  60  per  r«Mit  of  those  of  six 
years  ago. 

10.  Tiie  only  advantage  our  foreign  competitors  have  over  us  is  in 
the  cost  of  certain  kinds  of  iron  and  steel.  This  is  chiefiy,  of  course, 
the  case  in  England,  but  on  nearly  all  grades  of  these  products  we  are 
at  present  on  pretty  even  terms. 

11.  We  can  successfully  compote  with  all  foreign  manufacturers  in 
both  (piality  and  prices  except  in  cases  where  special  grades  of  steel 
peculiar  to  foreign  countries  are  used. 

12.  In  our  line  of  business  we  did  not  feel  the  eftect  of  the  recijjroc- 
ity  treaty  nuule  in  1890. 

13.  We  do  not  believe  in  that  system  of  reciprocity  which  results  in 
the  benefit  of  one  class  of  raanufa<^turers  without  any  relation  to  those 
equally  worthy.  We  believe  in  reciprocity  treaties  which  are  broadly 
general,  so  that  the  general  effect  shall  be  a  free  as  possible  inter- 
change of  trade  between  different  countries,  especially  between  the 
United  States  and  Canada  and  the  United  States  and  Mexico. 


The  Filer  and  Stoioell  Company,  Milwaukee,  Wis. 

2.  Steam  engines,  pumps,  and  sawmill  machinery. 

3.  Five  hundred  and  fifty  thousand  dollars  capital;  three  hundred 
employees;  value  of  product,  $000,000. 

4.  Ninety  per  cent  home  market,  10  per  cent  foreign  market. 

5.  We  sell  direct. 

6.  Yes,  by  traveling  salesmen. 

7.  The  change  hi  the  tariff'  laws  with  Cuba  and  the  South  American 
republics  has  indirectly  damaged  our  business  considerably.  A  largo 
per  cent  of  our  machinery  is  used  in  the  Southern  States.  As  stated, 
the  change  in  the  taritf  laws  has  interfered  with  exporting  lumber  from 
the  Southern  States,  and  in  that  way  has  affected  our  business.  What 
is  needed  to  improve  export  trade  between  the  United  States,  Cuba, 
and  the  South  ximerican  republics  is  direct  lines  of  steamers.  This 
would  be  our  remedy.  A  couple  of  years  ago  we  made  a  shipment  to 
Venezuela  by  way  of  Liverpool.  Such  a  triangular  route  is  hardly  in 
keeping  with  American  enterprise. 

8.  Do  not  know. 

9.  A  reduction  in  Canadian  tariff's  would  benefit  our  business  consid- 
erably. 

10.  Forty  per  cent  greater. 

11.  Twenty-five  per  cent  less. 

12.  Forty  per  cent  less. 

13.  None  in  American  r.iarkets. 

14.  Foreign  built  sawmill  machinery  is  75  per  cent  lighter.  There- 
fore tliey  have  a  proportionate  advantage  in  material  and  transpor- 
tation. 

15.  Builders  of  the  best  grade  of  sawmill  machinery  in  the  United 
States  could  comiiete  with  the  world  in  quality  and  adaptability  for 
the  purpose  it  is  intended. 


408 


RECIPROCITY    STATEMENTS. 


16.  Tiicreast'd  a])proxiinately  25  per  cent. 

17.  Approximately  60  jieiceiit  can  be  absorbed  in  the  borne  market. 

18.  As  far  as  n)y  experience  goes,  the  effect  of  the  reciprocity  treaties 
of  ISOO  were  favorable  to  American  maiuifaiiture. 

Jl>.  1  have  no  means  of  knowing-  its  elfect  upon  farm  products  be- 
yond the  increased  duties  on       ur  exports. 

20.  Yes;  I  favor  the  application  of  the  reciprocity  principle  to  future 
tariff'  legislation,  and  recommend  the  enactment  of  a  general  law  autlior- 
izing  the  President  to  negotiate  such  treaties  with  European  aud  Amer- 
ican nations  as  far  as  possible. 


The  Ball  &  Wood  Con.pany,  New  York, 

This  company  is  engaged  in  building  steam  engines  for  manufacturing 
and  electrical  purposes,  and  while  our  dealings  with  foreign  countries 
have  been  limited,  yet  we  have  shipped  engines  to  Belgium,  Switzer- 
land, Cuba,  Siiim,  and  now  have  an  order  on  our  books  for  Jai)an. 

Jn  our  experience  we  do  not  find  a  pre)udi(!e  existing  agai  ist  our 
goo  Is  abroad,  or  that  customs  duties  or  other  restrictions  prevent  their 
introduction.  We  attribute  the  failure  of  our  people  to  obtain  a  larger 
share  of  foreign  trade  to  an  absence  of  sustained  and  systematic  effort, 
ignorance  of  how  to  go  about  it,  and  to  their  greed  of  i)rotits  resulting 
from  high  prices  at  home,  fostered  by  an  extreme  i)rot«ctive  tariff. 

Under  such  a  system  trade  is  artiftcially  stimulated  at  home  and 
prices  are  high.  This  encourages  the  establishment  of  industries,  and 
for  awhile  we  are  prosperous,  then  tlie  limit  of  capacity  is  reached  for 
the  country  to  absorb  its  manufactured  products,  a  reaction  follows, 
and  we  experience  a  period  of  depression,  low  prices,  and  failure.  It  is 
then  that  the  surviving  manufacturers  appreciate  the  merits  of  a  for- 
eign trade,  and  look  about  them  to  i)rocure  it,  but  find  it  is  no  easy 
matter,  and  that  while  they  have  allowed  their  trade  to  follow,  like 
force,  its  line  of  least  resistance,  the  English,  German,  and  French  are 
already  in  full  prssession. 

You  ask  our  opinion  of  the  reciprocity  principle,  and  we  think  it  is 
well  enough,  but  believe  it  is  unnecessary,  and  have  sufficient  confidence 
in  the  greater  business  energy,  better  machinery,  and  more  intelligent 
labor  at  the  command  of  American  manufacturers  to  believe  that  all 
they  need  is  a  settled  and  stable  jjolicy  of  tariff"  and  finance  to  make 
their  way  successfully  in  the  markets  of  the  world.  If  you  will  give  us 
a  moderate  and  fixed  tariff",  not  so  extreme  in  either  dire(!tion  as  to 
invite  attack  from  ])olitical  parties,  and  if  you  will  give  us  a  sound  and 
permanent  financial  system  based  on  values  recognized  in  commerce 
the  world  over,  the  business  community  can  be  left  alone  to  care  for 
itself  and  lay  plans  with  confidence  for  trade  both  at  home  and  abroad. 
Without  these  we  can  only  regard  the  future  with  misgiving,  and  can 
only  regret  having  made  investments  which  are  subject  to  the  endless 
changes  in  legislation  and  the  interference  of  politicians. 

In  this  letter  we  have  probably  gone  outside  of  your  inquiries,  but 
believing  that  you  wish  to  put  yourselves  in  touch  with  the  manufac- 
turers direct,  we  believe  you  will  pardon  us. 


RKCIPROCITY   STATEMENTS. 


409 


The  Black  d;  Claicson  Company,  Hamilton,  Ohio, 

We  are  in  receipt  of  your  circular  letter  of  March  4,  and  below  you 
will  iiiul  our  rei)ly,  which  is  yiven  in  numerical  order,  as  per  your  cir- 
cular. We  hope  you  will  tiiul  our  answers  of  interest,  and  we  shall  be 
glad  to  have  you  to,  at  least  in  a  measure,  restore  the  tariff  and  reci- 
procity legislation. 

2.  JUiilders  of  paper-making  machinery. 

3.  Japan,  Australia,  Mexico,  Canada,  France,  Scotland,  Germany. 

4.  Yes.    Advertising  in  trade  journals  and  a  few  export  publications. 

5.  We  have  a  heavy  duty  to  pay  to  get  into  Canada  and  Australia; 
and  the  silver  money  of  Japan  and  Mexico  makes  it  difficult  to  get 
orders  from  there.  Reciprocity  might  help  us  in  the  tariff'  with  the 
former  countries,  but  we  have  no  suggestions  ou  the  silver  problem 
with  the  latter  ones. 

6.  None,  we  believe. 

7.  Would  help  us  very  considerably  in  Canada. 

8.  Abtnit  OOrJ  i)cr  cent. 

9.  Much  lower. 

10.  Owing  to  lower  wages  their  goods  cost  somewhat  leas,  but  with 
the  liigh  merit  of  American  machines  we  are  able  to  compete  in  price. 
Trans])ortation,  however,  is  in  their  favor. 

11.  Quality  of  American  machinery  is  highly  appreciated  in  most 
foreign  C(nintries. 

12.  Do  not  think  it  had  other  than  an  indirect  effect  on  our  line  of 
manufacture,  but  this  was  to  our  advantage.  Wo  look  upon  their 
repeal  as  unfavorable  to  this  country. 

13.  Yes.  We  boliev^e  it  will  increase  our  export  trade  with  all  coun- 
tries and  in  all  lines  to  which  it  applies. 


■    I'' 


JarecM  Manufacturing  Company,  Erie,  Pa. 

2.  Brass  and  iron  goods  and  machinery  for  steam,  gas,  oil,  and  water 
purposes,  etc. 

3.  Ca])ital,  $2,000,000;  employees,  800. 

4.  Mostly  at  home,  small  export  proportion. 

5.  (Some  to  foreign  dealers,  some  thi'ough  export  houses  to  Europe 
and  South  America. 

6.  Partly  by  advertisement. 

10.  About  25  per  cent  increase. 

11.  Labor  about  same  cost,  material  lower, 

12.  Considerably  lower. 

14.  None,  except  lower-priced  labor. 

15.  Can  compete  in  some  of  our  lines. 
10.  Considerably  increased. 

17.  Present  output  too  large  for  home  consumption* 
20.  Yes. 


J.  A.  Field  Manufacturing  Company,  St.  Louis,  Mo. 

2.  Sugar-cane  mills,  feed  mills,  and  agricultural  implements. 

3.  TwMUity  tlionsand  dollars;  25  to  40  employees;  value  of  product, 
$110,000  annually. 


410 


RECIPROCITY    STATEM KNTS. 


4.  Market  botli  lioiuo  iiiid  fort;i}i:ii — about  10  per  cent  foreign. 

5.  Sell  botli  direct  to  tbrei}>ii  dealers  and  through  (ioniniission  lionsea. 

6.  We  have  tried  to  extend  our  foreign  trade  by  advertising,  with 
reason  iblo  Ruccess,  mostly  in  South  America,  JMexico,  India,  Europe, 
and  Canada. 

7.  The  trouble  we  have  is  the  excessive  revenue  laws  of  other  <!oun- 
tries. 

9.  It  would  triple  our  trade  if  these  laws  can  be  repealed  or  modi- 
fied, especially  with  Canada  and  Mexico. 

10.  The  output  of  our  establishment  is  L»5  per  cent  less  than  six  years 
ago. 

11.  Wages  and  most  raw  material  now  are  lower  by  10  to  15  per  cent 
than  six  years  ago,  and  selling  i)riccs  much  less  still. 

12.  They  are  25  to  35  per  cent  less. 

13.  Euroi)e;  in  all  the  markets  we  enter. 

14.  Cheap  labor  and  cheap  transportation;  both  are  in  favor  of 
Europe,  as  well  as  shipping  facilities  direct.  Many  times  we  have  to 
go  via  lOurope  to  get  to  South  America. 

15.  We  can  compete  in  quality  to  its  fullest  extent,  but  not  at  all  in 
price. 

16.  We  think  it  has  decreavsed  very  much. 

17.  Two  thirds  now,  and  the  balance,  one  third,  could  be  exiiorted  as 
it  is  now,  and  if  running  lull  capacity  nearly  one-half  could  be  sent 
abroad. 

18.  The  reciprocity  treaty  of  1890  was  very  favorable  to  foreign  trade 
in  this  country  with  others  where  this  reciprocity  existed. 

10.  Do  not  think  we  can  answer  this  ([uestion  more  fully  than  we 
have  in  the  last  two  'juestions. 

20.  We  favor  reciprocity  with  all  countries  as  far  as  practical,  giving 
the  President  full  jiower  to  negotiate  such  treaties. 


Diamond  Machine  Company,  Providence,  R.  I. 

We  are  not  aware  of  any  particularly  beneficial  effects  derived  from 
^lie  reciprocity  legislation  of  1890  in  our  business.  We  believe,  how- 
ever, that  the  effect  of  the  legislation  has  been  good  for  the  country  as 
a  whole,  and  trust  that  it  will  not  be  repealed. 

In  regard  to  your  second  question,  we  will  say  that  the  customs 
duties  in  most  countries  in  Europe,  and  especially  in  France,  interfere 
very  seriously  with  the  extensions  of  trade  iu  those  countries.  We  are 
practically  shut  out  from  the  French  market  for  all  of  our  productions, 
except  the  very  largest  and  heaviest  machines.  We  are  thereby  de- 
l)rived  of  a  portion  of  the  grindi.";'  machine  business  which  we  would 
like  to  secure  in  this  country,  and  the  manufacturers  there  are  unable 
io  supply  themselves  with  the  best  line  of  grinding  and  x)olisliing 
machinery  made  in  the  world.  The  situation  in  central  South  America 
is  not  so  familiar  to  us,  as  our  trade  has  not  extended  to  this  country 
to  any  extent,  excei)t  through  commission  houses  iu  New  York. 

The  customs  of  l^higland  are  so  liberal  that  we  are  able  to  do  a  very 
large  business  iu  that  country. 


RECIPROCITY    STATEMENTS. 


411 


The  Standard  Machinery  Comimny,  MystiCy  Conn. 

Capital,  $103,000;  60  persona  oinjdoyed;  annual  fnodiict,  about 
$12(),000;  market  mostly  at  homo;  ship  sonui  {j;oo(ls  to  Houth  America 
through  (iommission  lumses;  are  doing*  more  advertising  tiian  formerly 
to  extend  foreign  trade. 

Our  output  is  about  the  same  as  six  years  ago,  but  prices  are  lower. 
Competition  is  much  greater  than  then;  cost  of  production  a  little  less; 
wages  a  little  lower,  ami  some  kinds  of  material  less. 

Foreign  competitors  have  the  advantage  over  us  in  the  lower  ju'ice 
of  labor.  If  wo  had  a  larger  foreign  outlet  for  our  goods  wo  could 
increase  sales  materially.  The  home  market  is  not  suflicient  to  absorb 
all  the  goods  manufactured  in  our  line. 

In  answer  to  inquiry  20,  we  would  say  that  we  favor  reciprocity 
treaties  with  foreign  countries. 

Wo  also  favor  restriction  to  foreign  pauper  immigration.  Our  largo 
manufactories  are  filling  up  with  cheap  i)auper  labor,  caused  by  tiie 
immense  tide  of  immigration  setting  in  upon  us,  aiul  the  increase  of 
labor  saving  machinery  whereby  cheap  foreign  labor  can  bo  employed 
to  the  exclusion  of  our  native-born  workmen,  who  go  into  other  lines  of 
work  rather  than  be  brought  down  to  starvation  wages.  Increase  of 
competition  tends  to  lower  the  price  of  labor. 

There  are  many  other  things  that  enter  in  to  hurt  trade  and  reduce 
profits.  The  reduction  of  the  tariii"  on  woolen  goods  has  almost  ru'ned 
that  industry  in  this  country. 


F.  J.  Khigshury,  Wato^'nry,  Conn. 

Our  market  is  of  necessity  mainly  a  domestic  market,  but  anytl.ing 
which  makes  trade  healthy  and  gives  the  people  good  wages,  so  that 
they  can  buy  the  comforts  and  luxuries  of  life  which  we  manufacture, 
is  a  benelit  to  us. 


«     ! 


'i    '      i' 

V 

!'  ■ 


The  Liberty  3fachine  Works,  Ifew  Torh. 

1.  The  name  of  the  company  of  which  I  am  j>resident  is  the  Liberty 
Machine  Works,  at  61  and  63  Frankfort  street,  New  York  City. 

2.  Building  by  contract  of  printing  and  paper  cutting  macliinerj^, 
dealing  in  type,  printing  inks,  and  all  kinds  of  printers'  nuiterials, 
papers,  etc.  , 

3.  All  the  Latin-American  countries,  and  Europe,  China,  etc. 

4.  We  have  made  direct  ettbrts  to  extend  our  trade  by  our  Spanish 
publication.  El  Amigo  del  Tipografo,  and  interesting  Latin-American 
merchants  in  selling  our  goods  with  growing  success.  Our  pai>er  is 
more  in  the  nature  of  a  catalogue  in  sections  and  interests  lastingly 
by  articles  on  pertinent  questions  in  the  printing  trade.  We  have  sent 
often  samples  of  newspaper,  etc.,  and  try  to  get  contracts  to  supply 
regularly  papers  of  important  circulation. 

5.  In  Cuba  we  can  not  sell  any  paper  since  the  cancellation  of  reci- 
procity trea^"  The  Spanish-made  paper  enjoys  such  advantages  over 
the  United  b     tcs  made  that  the  United  States  are  virtually  out. 

6.  The  disadvantages  now  existing  arise  only  from  the  cancellation 
of  the  reciprocity  treaties;  otherwise  we  are  not  aware  of  any  changes 
m  existing  tariffs — printing  machinery,  types,  etc.,  being  mostly  on  the 
free  list. 


"'    f 


•i:-! 


412 


RECIPROCITY   STATEMENTS. 


7.  TliP  gGueral  adoption  of  tlio  "free''(!lau80  for  tlie  printing  machin- 
ery, (.v|)('s,  niul  news  pajior  coniinf'-  from  the  United  States  would, 
l)eyon<l  any  doubt,  increase  our  trade  immensely. 

8.  Our  business  lias  steadily  gn)\vn  since  we  (!onimitted  onrselvea 
exclusively  to  the  export  business  iu  18!M,  and  amounts  now  to  about 
$100,000  i)er  year. 

\).  The  present  net  sellinjj  prices  lor  printing  machinery  and  types 
are  much  l(>wer,  but  this  is  not  owing  so  much  to  any  foreign  comi)eti- 
t  ion,  but  to  transferring  the  yharp  homo  competition  to  the  trade  in  the 
Jiatin- American  countries  by  the  American  manufacturers. 

!(►.  The  advantages  of  foreign  competitors  are  principally  in  the 
fieight;  for  instance,  we  have  at  present  a  Inird  stand  against  German 
l)ai)er  manufacturers  in  Venezuela.  Their  paper  is  somewhat  cheaper 
and  the  freigiit  enough  cheaper  to  make  a  decided  «liirerence  in  the  cost 
of  tlie  i)apei'  for  a  large  newspaper,  and  in  consetpience  we  may  lose 
our  contract  with  El  Pregonero,  of  Caracas,  Venezuela. 

11.  \AMth  regard  to  foreign  competition  in  printing  machinery,  types, 
etc.,  we  have  to  rely  on  tlie  quality,  })rincipally.  We  can  sell  even 
sonu'  printing  machinery  and  tyi)es  in  Europe. 

1-5.  The  reciprocity  treaties  have  been  in  general  favorable,  according 
to  ')ur  experience.  Their  iei)eal  act(Ml  for  a  while  unfavorable,  but  as 
the  (inality  of  the  goods  was  the  priniiipal  recojnmendation  in  our  line 
of  goods,  the  deniaml  commenced  again  alter  a  while.  We  are  sure, 
though,  that  a  steady  ami  larger  increase  would  have  followed  if  the 
treaties  liad  vontinned. 

13.  So  far  as  we  can  Judge  from  our  experience,  the  reciprocity  prin- 
ciple is  entirely  sound,  if  the  treaties  are  made  to  please  both  parties. 


T 


i'hi 


The  tSUlwcll-Bicrce  &  Smith-  Vaile  Company,  Dayton,  Ohio. 

The  iuU  imme  of  our  comi)any  is  api)ended  hereto,  and  our  lines  of 
business  are  chiefly  the  manufacture  of  turbine  water  wheels,  feed-water 
heaters,  steam  pumps,  oil-mill  machinery,  ice  and  refrigerating  machin- 
ery, and  power-transmitting  machinery  of  various  kinds. 

Answering  your  questions  in  the  order  in  which  they  are  presented, 
so  lar  as  we  can,  we  beg  to  say  we  have  dealings  with  Great  IJritain, 
Franc(>,  Germany,  Eussia,  (^hina,  Japan,  and  the  various  Re])ul)lics  of 
Central  ami  South  America,  Mexico,  Cuba,  and  Canada.  We  have 
made  considerable  effort  to  se'iire  business  iu  these  various  foreign 
countries,  and  have  conct/iitri^ ' « (i  .mr  efl'oits  for  business  in  Great  Britain 
and  continental  Europe  iu  the  liunds  of  an  agencyln  London.  In  the 
other  countries  named,  we  operate  either  through  local  agencies  or  by 
correspondence.  Just  at  present,  we  have  a  very  large  contract  with 
])arties  in  Canada.  Of  course  the  tariff'  tax  levied  on  all  machinery 
introduced  into  Canada  stands  in  our  way,  and  no  doubt  our  business 
with  that  country  could  be  very  considerably  increased  but  for  this 
fact.  At  the  same  time,  we  are  strong  believers  in  the  doctrine  of  i)ro- 
tection  and  we  are  perfectly  willing  that  Canada  should  apply  the 
same  doctrine  in  protection  of  the  interests  of  her  manufacturers  and 
workmen. 

The  volume  of  our  business  as  compared  with  six  years  ago  has  con- 
siderably increased  (we  refer  now  to  the  foreign  business),  but  it  has  not 
met  with  that  increase  which  we  had  conlidently  hoped  for  a^nd  expected. 
Selling  prices  at  present  are  very  much  lower  than  they  were  six  years 
ago.    Foreign  competitors  have  an  advantage  over  us,  in  the  fact  that 


\WA 


RECIPKOCIT V    8TATEM  HNTSk 


413 


if  the 


i 


OH  a  Ronoral  tiling  their  labor  is  much  cheiipcr,  iuid  also  traiis])oitiiti(m 
(!liar}>i't<  as  a  jjenoral  thiiiff  arc  very  niuch  loss  tVoiii  ICn^^lisli  and  ICuro- 
]ieaii  |)'.)rts  than  from  our  ports.  Our  foreign  business  with  Mexico  and 
South  Auicrica,  for  inwtanee,  could  be  larjjely  increased  an<l  facilitated 
{greatly  by  rej;ular  lines  of  steamships  runninf;-  from  our  ])orts  to  the 
principal  ports  of  those  countiies.  The  reci[)rocity  feature  of  tln^  tariff 
Jaw  enax^ted  in  181K)  we  looked  upon  with  great  favor.  It  was  not  in  force 
a  surticient  length  of  time  to  faiily  test  its  merits,  but  it  was  in  t'oivAi  a 
sutticient  length  of  time  to  chsarly  estublish  the  fact  that  under  its  oi)er- 
ations  a  very  large  increase  in  our  export  business  could  be  made. 

We  should  be  very  glad  to  see  that  feature  of  the  law  reenactod.  We 
want  a  fair  and  reaociable  tariff  that  sh.:ll  produce  sutlicicnt  incoaie 
to  meet  the  needs  of  die  (jiovernmeut,  and  levie<l  upon  such  articles  as 
stiall  afford  tln^  largest  amount  of  protection  to  our  own  industries  and 
our  workmen.  If  such  a  bill,  coupled  with  reciprocity  i'eatures,  could  be 
enacted  and  allowed  to  stand  for  a  few  years,  we  conlidently  believe  that 
it  would  result  in  a  very  large  incirease  of  our  export  business  and  a 
very  large  developm«-nt  of  our  manufacturing  industries. 


The  WdJlarc  Manufnctnriiuj  Company^  Franl-Jort,  Ind, 

2.  Clay-working  macihinery  for  manufacturing  brick,  ami  drain  tile  in 
particular, 

3.  Cai)ital,  .fL'0,0()0;  invested,  $40,000;  employ  30  persons;  annual 
output  about  .f  50,000. 

4.  The  majority  of  our  trade  is  at  home;  we  export  some  of  our  goods, 
particularly  to  Canada.  Kecently  shipped  a  $.",000  plant  to  G  uatemala, 
Central  A  merica. 

5.  Part  of  our  export  trade  we  receive  through  exporters  and  part 
direct. 

6.  We  have  made  no  direct  effort  to  get  foreign  trade. 

7.  Personally,  we  know  of  no  ptuticular  discrimination,  except  between 
Canjwla  and  the  Stares.  The  duty  on  bru'k  machinery  going  into  Can- 
ada is  30  per  cent.  The  result  is  we  are  deprived  of  consider* J »le  busi- 
ness from  Canada.  The  duty  is  making  it  possible  for  our  machinery 
to  be  manufactured  in  Canada,  as  the  inclosed  letter  will  testify.  We 
find  that  the  German  nmiiufacturers,  as  well  as  the  English  and  the 
Canadians,  are  co])ying  after  our  machinery  as  near  as  possible;  and 
with  the  duty  against  us,  and  with  the  diflerence  in  the  price  of  the 
labor,  we  can  not  hope  to  have  much  trade  from  tliese  three  sections. 
We  can  only  suggest  that  such  material  or  goods  that  those  countries 
produce  that  we  can  not  produce  shouUl  be  admittcnl  into  the  Mnited 
States  free,  on  condition  that  goods  that  are  not  produced  by  those 
countries  and  produiied  by  the  manufacturers  of  the  United  States  be 
admitted  free. 

8.  We  know  of  no  changes  in  the  tarift"  between  those  countries  and 
the  United  States  taking  place  in  the  last  five  or  six  years. 

9.  If  the  duty  was  removed  from  brick  machinery  goinr;  into  Canada, 
Ave  could  increase  our  business  fully  25  per  cent. 

10.  The  output  of  our  factory  in  1803  and  1804  was  50  per  cent  of 
what  it  was  in  1891  and  1892.  Our  output  in  1895  was  10  per  cent  less 
than  it  was  in  1892.  Our  output  this  year  will  fall  off  75  per  cent  of 
what  it  was  last  year  if  it  continues  as  it  has  been  since  the  Ist  of 
January. 

11.  The  cost  of  production  of  our  machinery  is  about  the  same  as  it 


1  r->' 


tSf' 


wm 


414 


RECIPROCITY   STATEMENTS. 


.^1- 


was  SIX  years  ago.  Tlie  trade  has  demanded  a  high  grade  of  machin- 
ery. Tlie  cost  of  labor  is  slightly  less — nothing  to  speak  of  as  com- 
pared M'ith  the  better  grade  or  the  extra  cost  incurred  in  making  higher 
grade  of  machinery.  The  cost  of  material  is  in  some  respects  lower 
and  in  other  respects  it  is  higher.  The  same  can  be  said  of  railroad 
tr.ansportation. 

12.  Our  selling  prices  are  fully  20  per  cent  lower  than  they  were  six 
years  ago. 

13.  We  meet  with  considerable  competition  in  the  States  with  Cana- 
dian, English,  and  German  makes  of  brick  machinery. 

14.  Our  foreign  competitors — Germany  and  England  in  particular,  we 
speak  of  them  for  the  reason  that  they  are  the  largest  manufacturers  of 
clay- working  machinery  of  any  country  outside  of  the  United  States — 
have  a  very  considerable  advantage  over  us  in  the  matter  of  wages 
paid  for  labor.  We  find  on  close  observation  that  our  direct  labor 
account  equals  a  little  more  than  half  of  our  general  expense  of  pro- 
ducing iir  machinery;  and  with  Germany  paying  at  least  50  per  cent 
less  and  England  25  per  cent  less,  and  with  strong  competition  at  home, 
it  drives  our  margins  on  machinery  to  the  lowest  notch,  and  we  still 
can  not  meet  their  prices  east  of  the  Alleghany  Mountains.  The 
advantage  that  we  have  so  far  is,  that  our  machinery  in  this  country  is 
6ui)erior  to  the  machinery  made  in  England  and  Germany,  but  they 
are  copying  after  us  very  rapidly,  and  we  look  for  very  strong  competi- 
tion with  them  for  the  eastern  trade  as  far  west  as  Pittsburg  if  there 
is  not  sufficient  duty  placed  upon  brick  machinery  to  protect  us  against 
such  competidon. 

16.  We  have  no  data  to  tell  what  the  exact  total  product  is  in  the 
United  States  in  our  line.  We  do  know,  however,  that  the  facilities  of 
the  United  States  are  such  that  we  can  produce  a  surplus  over  home 
consumption.  The  manufacturers  of  brick  machinery  have  increased 
their  plants  from  time  to  time  each  year  until  last  year,  since  when 
they  have  decreased  somewhat  for  the  want  of  business. 

17.  The  United  States  could  consume  75  per  cent  of  the  output  of  oar 
present  facilities  for  manufacturing  brick  machiner3\  Therefore  we 
have  fsicilities  at  the  present  time  for  making  a  surplus  of  fully  25  per 
cent,  and  have  plenty  of  ground  and  money  to  very  materially  increase 
our  out])out. 

18.  Most  undoubtedly  the  reciprocity  treaties  of  1890  would  be  favor- 
able to  the  exi)ort  trade  of  the  IJnited  States  and  the  repeal  of  same 
we  consider  one  of  the  greatest  blunders  of  the  age.  Our  stringent 
times  in  the  manufacturing  lines  of  189;{,  1894, 1895,  and  1890  are  due 
largely  to  the  repeal  of  the  reciprocity  treaties,  for  the  reason  that  pre- 
vious to  1889  the  manufacturing  interests  of  th^  I7nited  States  were 
working  on  an  unsui)plied  maiket.  In  a  great  many  lines  they  had 
struck  the  zenith  long  before  that  time,  and  were  not  only  able  to  supply 
home  consumjytion,  but  to  make  a  surplus.  The  recipnx'ity  treaties  of 
1890  o,,en('d  a  market  for  this  suri»lus,  a  larger  quantity  being  consumed 
at  h')m©  by  giving  employment  to  the  surplus  hibor,  thereby  making 
business  in  the  United  States  much  better  for  those  who  were  depend- 
ing upon  the  United  States  for  the  consumption  of  their  product. 
When  the  United  States  lost  its  export  trade  through  the  repeal  of  the 
reciprocity  treaties,  we  lost  not  only  our  export  trade,  but  the  trade 
in  the  United  States  from  the  lack  of  the  ability  of  the  laboring  classes 
to  purchase  a  great  many  articles  that  they  could  iiave  purcliased  ff 
they  had  been  given  steady  emi)loymenr,  as  they  were  during  the  short 
time  when  reciprocity  treaties  were  in  force. 


RECIPROCITY   STATEMENTS. 


415 


19.  To  our  mind  tlie  repeal  of  the  reciprocity  treaties  has  .acte^i  as  a 
"  bear  "  on  all  farm  products,  for  the  reason  of  the  inability  of  the  labor 
ing  classes  to  consume  as  much  as  they  did  when  the  reciprocity  treaties 
were  in  force,  thereby  giving  us  a  surplus  of  farm  products  that  other- 
wise would  have  been  consumed. 

20.  Most  undoubtedly  we  are  in  favor  of  applying  the  reciprocity 
principles  to  future  tariff  legislation,,  and  the  President  should  be 
authorized  to  negotiate  reciprocity  treaties  with  all  countries,  especially 
South  American  and  Central  American  countries,  as  well  as  Mexico, 
admitting  many  of  the  articles  that  they  manufacture  or  produce  and 
that  we  do  not  manufactui-e  or  produce  into  the  United  States  on  con- 
dition that  they  admit  our  manufactured  product  free. 

We  sincerely  hope  that  the  Wvys  and  Means  Committee  will  formu- 
late a  tariff  bill  that  will  close  our  ports  of  entry  against  every  article 
that  we  can  produce  in  this  country  for  our  own  consumption,  even  if 
it  becomes  necessary  to  have  a  more  direct  t;ix  than  duty  on  imports 
in  order  to  maintain  our  Government.  If  the  tariff  laws  are  such  that 
they  will  shut  off'  competition  from  foreign  countries  so  as  to  manufac- 
ture our  home  product  and  keep  our  labor  employed,  and  with  a  reci- 
procity treaty  that  will  take  care  of  our  surplus,  we  can  well  afford  to 
pay  our  taxes  direct  in  order  to  maintain  the  Government. 

We  trust  that  this  will  be  satisfactory,  and  that  you  will  succeed  in 
formulating  a  tariff  law  that  will  not  only  bring  in  sullicie.it  revenue 
to  carry  on  the  expenses  of  the  Government,  but  that  it  will  protect 
each  manufacturer  in  his  particular  line  of  goods  that  can  be  i)roduccd 
for  our  home  consumption,  and  with  a  reciprocity  treaty  thai  will  opeu 
up  the  markets  of  the  world.  We  are  conlident  that  it  you  will  do  so, 
the  United  States  Government  can  redeem  bonds  instead  of  issuing 
more. 


.  \' 


I 

M 


D.  Q.  Lootnis  <&  Sons,  hriokmakers,  hiuldern,  arA  railroad  contractors. 

Sherbrooke,  Quebec,  March  13,  1896. 

Dear  Sirs:  Yours  of  the  10th  to  hand,  and  in  answer  say  that  your 
machinery,  with  duty  and  freight,  came  too  high;  so  we  have  arranged 
to  manufacture  what  we  require  here,  with  the  exception  of  a  Potts 
disuit. 

All  our  orders  for  machinery  are  filled,  and  we  expect  to  be  in  full 
working  order  within  a  month.  Our  market  recjiiires  a  soft-mud  brick, 
and  it  would  be  too  expensive  and  difllicult  a  Job  to  introduce  a  stiff- 
mud  brick  now,  for  they  are  prejudiced  against  auger-machine  brick. 

Yours,  • 

D.  G.  LooMis  &  Sons. 

TIio  Wallace  Manufacturing  CoMrANY, 

Frankfort,  Ind. 


The  Link  Belt  Machinery  Company,  Chicago. 

The  present  rates  o*"  customs  interfere  with  our  Ca-nadian  trade,  and 
rociproca\  arrangemeute  with  Canada  would  bo  of  advai.  "age  in  our 
busiucsis 


!;.-5 


11 


416 


RECIPROCITY    S"ATEMENTS. 


Nordyl-e  &  Marmon  Compamj,  Indianapolis. 


Siig- 


2.  Flonr  mill,  rice-mill,  and  other  cereal-mill  macliinery. 

3.  Five  liiindred  thousand  dollars;  250  peisons  now;  450  durinj;  good 
times. 

4.  Both;  90  per  cent  home;  10  per  cent  abroad. 

5.  Both. 

6.  Yes.     Lately,  by  associating  ourselves  with  an  export  assof^iation, 
with  head(]narters  in  New  York  City.     Formerly  by  advertising. 

7.  We  are,  espe<dally  in  Canada  and  South  American  countries, 
gest  the  remedy:  lieciprocity. 

8.  We  know  of  none. 

9.  Materially. 

10.  Ab(mt  75  per  cent. 

11.  Somewhat  less. 

12.  Kg  comparison  whatever.    Starvation  prices  at  present. 

18.  We  can  not  nor  do  not  pretend  to  compete  with  foreign  countries. 
Generally  a  matter  of  preference,  when  we  secure  an  order, 

14.  Can  not  say. 

15.  See  re^dy  to  13. 
10.  ])ecrear>ed. 

17.  Manufacture  on  orders  only.     Can  not  answer. 

1<S.  Favorable.     Very  noticeable.    The  rei)eal  great  drawback. 

19.  Can  not  say. 

30.  We  certainly  do,  most  heartily. 


The  Springfield  Machine  Tool  Company,  Springfield^  Ohio, 

2.  We  make  a  line  of  machine  tools  embracing  engine  lathes,  shapes, 
power  presses,  hrass-linishing  lathes,  et(!. ;  also  are  gray  iron  founders. 

3.  We  have  a  fair  trade  in  j^ngland,  and  made  once  a  small  shipi  lent 
to  Gernuiny. 

4.  Our  trade  in  England  came  through  ])ers(mal  soli(itati<»n,  and  is 
kept  nj)  by  advertising.  Have  never  made  any  direct  elfort  to  extend 
our  trade  elsewhere  except  by  answering  letters  from  incpiircrs,  but 
which  iilways  failed  to  bring  the  trade. 

5.  We  believe  that  the  Idgh  tarill"  laws  of  Germany,  France,  and 
other  machinery-using  countries  ])revent  our  toohi  from  being  moi*i 
extensively  sold.  We  mean  that  onr  line  of  what  is  known  as  "nmchiiie 
tools,"  being  recognized  as  much  superior  in  design  and  workmanshij), 

^wonld  sell  the  world  over  provided  we  could  deliver  them  within,  a  rea- 
sonable j)rice.  IMachine  tools  are  used  only  in  the  older  manufacturiit", 
centers,  like  I'^raiice,  F.ngland,  and  (iernu\ny.  South  America,  Mexico, 
Africa,  and  India  do  not  use  enough  modern  nniehine  to(»ls  to  make  it 
an  object  to  obtain  their  trade.  The  latter  nanu'd  use  agricultural  an<l 
mining  machinery,  whi<h  we  do  not  mainr'acture. 

().  Are  not  aware  of  any  changes  in  the  taritl's  of  foreign  countries 
using  our  line. 

7.  (lermany,  perhaps,  would  be  the  largest  market  in  the  world  for 
American  machine  tools  if  we  could  get  them  there  within  a  reasonable 
l)rice.  The  Germans  like  our  tools,  but  claim  they  can't  all'ord  to  import 
them  owing  to  a  taiill'  of  abont  35  per  cent,  we  believe. 

8.  The  volunu'  of  onr  business  com]>ared  with  six  years  ago  is  50  per 
cent  greater,  butwf  firo  yet  a  young  concern,  and  this  was  expected. 


RECIPROCITY   STATEMENTS. 


417 


ig  good 

r'iation, 

I" 

L  sug- 


untriea. 


k. 


sliaiic's, 
)Uii(k'i's. 
lipriont 

L  and  is 

extend 

fcrs,  but 


K-e 


and 
|i<;'  mory 
liiacltine 
iKinslii]), 
In  a  r«'a- 
licturiiM' 
JMrxico, 
Iniako  it 
liral  and 


huntrics 


ovld  for 

Isonable 

import 

.10  pot 
■ted. 


9.  The  selling  price  of  today  on  general  machine  tools  is  at  least  25 
per  cent  less  than  six  years  ago. 

10.  We  are  told,  and  are  under  the  impression,  that  foreign  coni- 
I)etitor8  have  the  advantage  of  cheaper  transportation  charges.  For 
instance,  it  costs  more  to  deliver  from  Springfield  to  New  York  than 
from  New  York  to  London. 

11.  We  can  easily  com])ete  with  foreign  machine-tool  builders  both 
in  quality  and  price,  and  tin;  superiority  of  design  of  Ameiicau  machine 
tools  is  undis[)utc(l,  particularly  on  the  engine  lathe,  which  is  the  king 
of  all  tools  aiul  is  used  five  to  one  in  any  machine  shop. 

12.  We  have  no  ex])erience  to  report  as  to  the  general  reciprocity 
treaties  of  1890  and  their  repeal. 

13.  Wo  are  decidedly  in  favor,  however,  of  any  reciprocity  law  that 
will  ])ut  us  into  closer  trade  relationship  with  any  foroiga  country, 

IMiially,  we  would  ment.  n  and  suggest  that  in  order  to  more  rapidly 
acquire  foreign  trade  that  our  consular  service  be  given  more  and 
closer  attention,  by  putting  in  business  men  (not  worn-out  ward  politi- 
cians) who  are  alive  to  wliat  is  being  manufactured  here,  who  will 
interest  tliomsidves  to  find  out  what  nuichiiiey  is  used  in  the  locality 
where  they  are  statioiunl,  ])ost  themselves  where  they  obtain  it,  and  then 
acquire  and  report  the  information  to  the  manufacturers  of  tlds  country 
through  some  medium  that  Congress  should  provide. 

We  should  in  sonu)  umnner  imitate  the  German  (iovernment,  which, 
we  are  informed,  has  a  bureau  of  some  kiiul  that  visits  the  manufac- 
turers, flnd.s  out  the  line,  kind,  and  style  of  goods  manufactured,  with 
juices,  etc.,  arid  then  assists  in  some  manner  to  Introduce  these  goods 
in  the  foreign  trade,  and  then  reports  back  to  the  manufacturer  any 
suggestions,  changes,  etc.,  best  adapted  for  that  iiarti(;ular  country — 
in  short,  takes  an  interest  in  them,  and  helps  to  extend  trade  wherever 
]>ossible.  We  also  recommend  better  banlang  facilities  with  foreign 
cou'itries,  umler  our  own  control,  and  that,  with  subsidized  carrying 
vessels,  we  ought  to  largely  increase  our  foreign  trade.  Lastly,  the 
manufactures  of  this  country  should  have  a  representative  in  the 
Tresideut's  (Jubiuet,  same  as  agriculture. 


1  ift  ( 


B.  W.  Payne  &  Sons,  Elmira,  N.  Y. 

2.  Lines  of  trade?    Manufacture  of  steam  engines  and  boilers. 

3.  With  what  foreign  countries  do  you  deal?  We  have  dealt  largely 
with  Cuba;  some  with  Mexico,  Venezuela,  and  Brazil.  Have  also  liad, 
from  time  to  time,  some  trade  with  China  aiul  the  British  Indies.  Our 
export  trade  heretcifore  has  been  principally  with  Cuba. 

I.  Have  you  made  any  effort  to  extend  your  foreign  trade?  Only 
through  the  exi)orters  in  New  York. 

5.  Are  you  aware  of  any  discrim'pations,  etc.?  The  import  duties  in 
Cuba  preveiit  us  from  reaching  that  market.  We  can  not  say  tliat  we 
are  injuiiously  affected  witli  tlie  other  countries. 

(i.  \\  hat  changes  have  recently  occurred  in  the  tarifl",  etc.?  The 
abrogation  of  the  reciprocity  treaties  luive  shut  us  out  from  the  Cubau 
nmrket. 

7.  How  far  would  the  removal  or  reducti<m  of  custom  duties,  etc.? 
We  are  unable  to  answer  this  question,  as  we  do  not  know  just  what 
the  imi»oi  t  duties  iu  Cuba  now  are.  After  the  reciprocity  treaties  were 
H.  Kep.  2203 37 


I!  :!: 


'j 


418 


RECIPROCITY   STATEMENTS. 


abrogated  trade  from  the  island  with  us  ceased  at  once,  and  just  what 
duties  were  iin])()sed  we  are  unable  to  say. 

8.  What  is  the  volume  of  your  business  compared  with  that  of  six 
years  ago?  The  total  volume  of  our  business  is  about  one-third  of 
what  it  was  six  years  ago.  Our  export  trade  has  fallen  off  almost 
entirely. 

9.  How  do  present  prices  compare  with  those  of  six  years  ago?  There 
is  a  reduction  of  from  25  to  50  i)er  cent,  de])endiug  upon  the  character 
of  the  goods. 

10.  What  advriutages  do  your  foreign  competitors  have  over  you,  etc.  ? 
Aside  from  all  disciiminating  duties,  their  advantages  are  principally 
in  the  means  of  transportation  and  banking  facilities. 

Li.  To  what  extent  can  you  compete  with  foreign  merchants,  etc.? 
AVith  proper  banking  and  transportation  facilities  and  with  equal 
duties  we  can  compete  with  foreign  manufacturers  in  any  of  the  South 
American  markets.  The  superiority  of  American  machinery  over  goods 
of  a  similar  class  made  in  Euroi)o  is  such  as  to  give  American  goods 
the  preference,  all  other  things  being  e(|ual. 

12.  What  is  the  general  effect  of  the  reciprocity  treaties  made  in  1S90 — 
favorable  or  unfavora.  le,  etc.?  Highly  favorable  in  trade  with  Cuba. 
it  made  little  difle'ence  with  the  other  South  American  countries,  in 
181)0,  1891,  and  1892  we  had  an  excellent  exj)ort  trade  to  the  island, 
which  was  increasing  every  year.  In  1893  it  dropped  off"  entirely,  and 
vfi"-  have  sold  nothing  there  since. 

13.  Do  you  favor  the  application  of  reciprocity  principles  to  future 
tariff  legislation,  etc.  ?    Most  decidedly,  yes. 


The  Laidlaw-Dunn-Oordon  Gomimny,  Cincinnati 

2.  Pumping  and  liydraulic  machinery. 

3.  Cuba,  Mexir'o,  Central  and  all  South  American  countries,  South 
Afi'ica,  Great  Jiritian,  and  Australia. 

4.  We  have  made  direct  effort  to  extend  our  foreign  trade  by  send- 
ing reiiresentatives  through  Cuba,  Mexico,  Central  and  South  America, 
and  Great  Britian. 

9.  About  30  per  cent  less. 

10.  Low  price  of  labor  in  cost  of  manufacturing  aiul  subsidized  iSteam- 
ship  lines,  which  carry  their  product  to  foreign  niarkets  at  much  less 
rates  than  we  can  from  this  country. 

12.  Tlie  general  effect  of  the  reciprocity  treaty  of  1890  was  very 
favorable  to  the  export  trade  of  the  United  States,  For  instani^e,  our 
trade  with  Cuba  fell  olf  almost  entirely  on  tho  withdrawal  of  the  reci- 
l)rocity  treaty  with  that  country.  The  same  may  be  said  of  our  South 
American  trade,  but  not  to  such  an  extent. 

13.  We  do  fav<n-  the  ai)plication  of  th(i  reciprocity  i)rinciple  for  future 
legislation  and  the  enactment  of  a  general  law  authorizing  the  Presi- 
dent to  nt^gotiate  reciprocity  treaties  with  both  l^uropean  and  Ameri- 
can nations.  The  adoption  of  the  ])oli('y  of  1890  regarding  reciprocity 
treaties  was  the  wisest  statesmanslii]*  and  certainly  did  much  to  bring 
us  into  better  and  closer  relations  with  all  the  i>eople  of  Central  and 
South  Ameri<!a.  The  raw  jn'oducts  of  those  countries  that  do  not  come 
into  competition  with  the  raw  products  of  our  own  country  should  cer- 
tainly be  admitted  free  of  duty  for  the  benelit  of  our  pe()i)le,  and  if 
these  privileges  wore  accorded  to  our  southern  neighbors,  they  would 


RECIPROCITY   STATEMENTS. 


419 


certainly  receive  from  us  many  of  our  products,  either  free  from  duty 
jiltof;(^thei',  or  at  duties  lower  than  they  would  receive  the  same  class  of 
products  from  other  nations. 

We  trust  that  such  j^eneral  laws  may  be  adopted  for  the  suli'ering 
manufactuiers  of  this  country. 


Crane  Company,  late  Crane  Bros.  Manufacturing  Company,  Chicago,  III, 

2.  We  are  manufacturers  of  steam  fitters'  supplies,  i)a88enger  and 
freight  elevators. 

3.  The  capital  of  our  business  is  $4,000,000. 

4.  Probably  95  to  97^  per  cent  of  our  business  is  in  this  country, 
exporting  from  L'A  to  5  per  cent. 

5.  We  sell  in  but  very  few  cases  direct  for  export;  it  is  done  m^iuly 
through  commission  houses. 

0.  We  have  made  but  very  little  elfort  to  sell  foreign  trade.  What 
we  have  done  is  by  means  of  an  agent  making  a  trip  to  the  Sandwich 
Islands,  Japan,  CUiina,  and  Australia. 

7.  We  know  of  no  discriminating  obstacle  in  the  way  of  laws,  but 
do  meet  something  in  the  way  of  custom,  which  in  some  cases  makes 
it  difhcult  to  procure  trade,  in  consequence  of  old  customs  and  asso- 
ciations. 

8.  1  know  of  no  changes  having  recently  occurred  in  taritt's  of  foreign 
countries  relating  especially  to  our  line  of  manufacture. 

0.  The  tariff  law  adopted  some  time  ago  in  Canada  has  been  quite  a 
detrinunit  to  supplying  that  market  with  our  line  of  goods,  as  previous 
to  the  adoption  of  that  law  Canada  was  supplied  in  our  line  of  goods 
largely  from  the  United  States.  Their  pre.«ent  tariff  now  prevents  shii)- 
ment  of  many  goods  wiiich  formerly  went  there. 

10.  I  have  not  the  figures  with  me  showing  the  comparative  output 
of  our  factory  now  with  that  of  six  years  ago,  but  it  is  safe  to  say  it  is 
2~)  to  33  per  cent  increase. 

11.  Would  say  the  same  thing  iu  regard  to  this.  I  have  not  the  figures 
Avith  me  S'houing  the  dillerence  in  cost  of  our  goods  now  as  com^tared 
with  six  years  ago,  but  estimate  it  to  be  20  to  25  per  cent  cheaper. 

12.  Selling  price  corresponds  with  the  cost. 

13.  We  meet  with  no  foreign  competition  in  the  United  States,  as  you 
readily  understand  that  would  be  inconsistent  with  exporting  the  same 
goods,  and  it  is  a  little  dilllcult  to  say  what  competition  we  meet  with 
in  foreign  countries,  but  it  is  safe  to  say  that  it  is  mainly  English  com- 
petition. 

14.  I  do  not  think  foreigners  have  any  advantage  in  the  cost  of 
nuinufacturing;  on  our  line  of  goods  the  main  advantage  they  have  is 
in  having  had  the  foreign  nuirkets  so  many  years  and  having  ship[)iug 
connections  of  the  best  kiiui. 

We  lind  in  the  little  eflbrt  we  have  made  that  it  is  difficult  to  do 
business  exce])t  at  points  that  we  reach  to  better  advantage  than  they 
do,  and  have  better  shipping  facilities,  such  as  the  Sandwich  Islands, 
Japan,  and  the  West  Indies. 

15.  This  has  been  practically  answered  before,  but  would  add  that 
we  hav3  no  dilTiculty  in  competing  with  foreign  manufacturers  as  far  as 
quality  and  j)rice  are  concerned. 

10.  The  total  production  in  our  liue  of  goods  in  the  United  States 
has  boon  very  materially  increased  in  the  last  six  yeais. 


i  If 


V  i 


^  H 


420 


RECIPROCITY   STATEMENTS. 


17.  I  can  only  j?ivc  an  estimate  in  an8werin,c;tli]8  question,  and  won la 
say  the  .suri)]iis  facilities  for  manufacturing  our  liue  of  goods  on  an 
average  is  not  more  than  5  or  10  per  cent  above  the  demands  of  the 
market. 

18.  In  regard  to  this  question  would  say  that  we  have  not  paid  close 
enough  attention  to  the  (luestiou  of  export  to  form  any  opinioM  worthy 
of  presenting,  as  the  amount  we  export  is  so  trifling  compared  with  the 
home  market  that  we  do  n(jt  regard  it  as  of  any  great  imj^ortauce. 

19.  1  do  not  Uiiderstand  the  question. 

20.  I  might  say  the  same  to  this  question,  and  would  add  that,  as  I 
have  said  in  answer  to  some  otlier  questions,  the  foreign  business,  as 
far  as  we  have  looked  into  it,  has  not  attracted  much  attention  from  us, 
and  have  no  oi)iiiion  to  give. 

In  reply  to  the  last  one  or  two  clauses  of  the  circular  letter,  would  say 
that  the  exporting  of  manufactured  goods,  as  you  readily  understand, 
is  so  far  in  advance  of  the  idea  of  requiring  protective  tariff  that  it  seems 
inconsistent  to  tulk  about  it. 

A  great  many  people  are  going  on  the  theory  that  we  can  not  take 
care  of  the  home  market  if  it  is  not  liberally  prote(;ted.  Consequently, 
it  is  the  height  of  absurdity  to  talk  about  or  to  especially  encourage  the 
export  of  manufactures,  althongh  there  are  lines  of  mannfactures  that 
we  can  :ind  have  exported  for  many  years,  which  facts  are  familiar  to 
your  committee,  or,  if  not,  you  are  in  a  position  to  get  such  information. 

My  reference  to  manufacturing  is  not  intended  to  include  the  manufac- 
ture of  farm  products. 

In  regard  to  the  general  princnples,  would  say  that  we  had  better  bring 
about  a  condition  of  things  that  will  enable  manufacturers  generally  to 
take  care  of  the  home  nuirket.  AVhen  that  is  reasonably  well  done  there 
will  be  time  enough  to  entertain  the  idea  of  seeking  foreign  markets  on 
an  C'.tensive  scale. 

The  statistic's  of  exports  of  American  manufactured  goods  ought  to  be 
an  important  factor  in  settling  many  of  the  tarifi"  questions. 


Atlas  Engine  Worls,  Indianapolis,  Ind. 

The  recii)rocity  treaties  are  the  only  means  by  which  the  low  rental 
values  of  money  that  enter  into  the  established  credit  systems  of  the 
8outh  American  States  can  be  overcome  to  any  extent  in  the  interest 
of  the  American  manufacturer.  The  English  competitors  of  this  house 
offer  long-time  credits  on  open  account  and  still  longer  for  bills,  receiv- 
able at  very  low  rates  of  interest,  the  credits  being  in  truth  more 
a(;ceptable  to  the  British  manufacturer  than  cash.  Just  so  far  as  the 
tariff  of  the  South  Anua-ican  States  is  reduced  in  our  favor  by  treaty 
are  we  jjroportionally  able  to  sell  heavy  machinery.  The  rental  value 
of  money  always  has  been  and  always  will  be  the  basis  of  commerce. 
No  one  alive  now  will  ever  see  the  day  when  we  will  be  on  an.^quality 
with  the  English  in  the  matter  of  amassed  wealth  or  low  rental  values  of 
money.  Whenever  we  become  aggressive  in  those  States  and  England 
feels  our  effort,  we  will  be  defeated  unless  ])reforence  is  given  to  us  in  the 
way  of  reciprocity,  as  heietofiu'e  so  willingly  entered  into.  Tlie  rej)eal 
of  the  recii)rocity  feature  of  our  laws  was  a  step  backward  numy  years. 

Tiie  above  opinion  is  based  ui)on  the  dilillcultics  this  company  has 
encountered  in  the  effort  to  establish  trade  in  the  South  American 
Republics. 


RECIPROCITY   STATEMENTS. 


421 


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The  Brass  and  Iron  WorJcs  Company,  Fostoria,  Ohio. 

Manufacturers  of  brass  goods  for  waterworks,  pipe-threading  machin- 
ery, printers'  machinery,  etc. ;  will  answer  your  several  questions  only 
in  a  general  way. 

Our  export  trade  has  been  limited  to  Italy,  and  as  our  manufactures 
are  largely  patented  specialties  foreign  com]>etition  has  little  or  no  effect. 

We  have  advertised  in  several  Spanish-American  ])ai)ers  and  nmiled 
many  circulars  to  Mexico  and  Spanish-American  countries,  with  unre- 
munerative  results,  owing  mainly  to  a  lack  of  facilities  and  knowledge 
of  the  exact  requirements  of  nations  and  people  entirely  different  from 
our  own. 

A  defect  in  the  arrangement  of  our  Government  de])artment8  that 
could  be  so  easily  remedied  by  changing  the  qualifications  of  our  repre- 
sentatives abroad  from  political  and  scxiial  attainments  to  pracitical 
expert  commercial  knowledge;  these  representatives  to  be  sent  abroad 
by  a  Government  department  of  manut'fictures  and  commerce. 

The  volume  of  our  business  varies  ^.ctle  from  that  of  six  years  ago. 
It  should  have  multiplied.    Prices  average  about  25  per  cent  less. 

We  can  easily  excel  in  quality,  as  compared  with  foi-eign  manufac- 
tures, but  can  not  compete  in  price,  because  the  American  mechani(;  will 
not  be  content  with  the  pay  of  the  mechanic  of  other  countries.  He  has 
been  trained  and  educated  in  the  liberal  school  of  the  republican  admin- 
istration until  he  is  50  years  old.  It  is  a  serious  crime  to  dismiss  this 
school  now  and  compel  him  to  saw  wood  or  plant  i)otatoes. 

The  American  mechanic  and  the  i)roducts  of  American  labor,  in  what- 
soever form,  must  have  suitable  protection  by  a  system  of  tariff  legisla- 
tion and  reciprocity  adjustment  that  will  give  us  the  first,  if  uot  exclu- 
sive, right  to  our  own  nmrket,  and  then  secure  by  fair  reciprocity  a  for- 
eign market  for  our  surplus  in  exchange  lor  such  articles  as  we  can  not, 
or  as  are  not  profitable  to,  produce  in  tliis  country.  With  a  fixed  system 
of  tariff'  and  reciprocity  on  fair  and  honorable  ])rinciple';,  this  country 
will  very  soon  develop,  through  the  inventive  genius  and  superior  intel- 
ligence of  its  mechanics,  so  as  to  produce  not  only  the  r)est  but  the 
cheapest  goods  in  the  world,  outside  of  those  who  live  on  rats  and  rice. 
The  steady  and  remunerative  employment  of  labor  means  prosperity  to 
the  farmer  and  every  industrial  occupation. 

In  this  connection,  and  to  our  mind  almost  inseparable  from  it,  is  the 
supply  and  demand  for  the  two  money  metals — gold  and  silver.  The 
world  appears  to  have  a  scarcity  of  the  fonner  and  a  surplus  of  the  lat- 
ter. The  United  States  of  America  is  the  greatest  commercial  nation  on 
earth,  hence  it  requires  more  nu)ney  per  capita  than  any  nation  in  the 
world.  Hence,  again,  the  amount  of  our  real  money  must  be  increased. 
We  must  keep  our  gold  and  add  to  our  store  by  the  means  that  will 
most  effectually  accomplish  it — tariff"  and  rec^iprocity.  We  have  enough 
silver,  perhaps  not  any  too  nuich.  Protect  and  increase  the  value  of 
what  we  have  by  absolutely  prohibiting  importations  of  silver  in  bul- 
lion, coin,  or  other  form.  Pestore  free  coinage  of  American  silver  on 
present  basis.  The  actual  and  enduring  wealth  of  this  country  will 
thereby  be  enhanced  very  largely.  The  profits  will  fall  to  our  own  peo- 
l)le;  to  everybody  In  this  country.  Nobody  in  this  country  will  suffer 
I'rom  this  course,  and  the  great,  struggling  masses  will  be  made  happy, 
for  they  will  have  employment  at  remnnerative  wages,  and  the  tranip 
will  lose  his  occupation. 

A  protective  tariil",  fair  reciprocity,  and  free  coinage  of  only  American 
silver. 


422 


RECIPROCITY    STATEMENTS. 


Tht  rdton  Water  Whed  Company,  San  Francisco,  Gal.,  andN'ew  Torlc  City. 

2.  Water  wheels,  water  pipe,  and  accessories  connected  with  hydraulic- 
power  plants. 

3.  Amount  of  capital,  $300,000.  lifumbfr  of  persons  employed  aver- 
age 75  to  100.     Value  of  annual  product,  about  $300,000. 

4.  Both  at  home  and  abroad.  About  one- third  of  entire  trade  goes 
to  foreign  countrj  js. 

5.  Almost  entirely  through  commission  houses. 

0.  Have  made  a  considerable  effort  in  this  direction,  partly  through 
advertising  in  export  trade  .journals  and  partly  through  established 
agencies.  Results  very  gratifying.  Foreign  orders  come  mostly  from 
Mexico,  Central  and  South  Americui,  Japan,  and  Canada. 

7.  Do  not  know  of  any,  except  in  Canada,  where  an  import  duty  of 
30  per  cent  is  exacted. 

8.  Do  not  know  of  any. 

9.  Would  aid  materially. 

10.  Fully  double. 

11.  Somewhat  less. 

12.  Considerably  reduced. 

13.  More  or  less  from  all  the  countries  to  which  our  products  are  sent. 

14.  A  great  advantage  in  botli  cost  of  manufacture  and  transporta- 
tion, especially  the  latter. 

15.  Our  products  are  much  superior,  but  we  can  not  compete  in  price. 
10.  Materially  increased,  owing  to  greater  interest  in  utilization  of 

water  powers. 

17.  Can  not  anvswer. 

18.  Most  favorable,  especially  in  Spanish- American  trade. 

19.  The  effect  of  repeal  very  detrimental. 

20.  Favor  it  most  decidedly. 


m 


M 


TJie  lAnJc-Belt  Engineerinjj  Company,  Nlcetoicn,  Philadelphia,  Pa. 

2.  Machinery  for  the  elevating  and  conveying  of  materials  and  the 
transmission  of  power. 

3.  Capital,  $200,000.  Number  of  persons  employed,  about  140,  Value 
of  annual  product,  $500,000. 

4.  An  average  of  several  years  would  show  about  seven-eighths  of 
our  sales  to  be  in  the  home  market  and  the  remaining  oue-eiguth  to  be 
ex])orted. 

6.  Principally  to  commission  houses. 

6.  Our  direct  efforts  to  reach  foreign  trade  have  been  confined  to  the 
Spanish-American  countries.  They  have  been  exerted  through  adver- 
tising, careful  distribution  of  illustrated  catalogues  printed  in  Spanish, 
and  the  annual  sending  of  a  representative  to  the  island  of  Cuba. 
These  efforts  have  been  markedly  successful  during  the  continuance  of 
the  reciprocity  treaty  made  in  1890.  We  did  a  much  larger  business 
with  the  island  of  Cuba  in  1891  than  in  the  preceding  year,  and  made 
another  large  advance  in  1892,  falling  olf  nearly  to  the  1890  figures 
in  the  years  1893  and  1894,  with  which  year  comparisons  cease  to  be 
of  value,  owing  to  the  conditions  which  existed  in  the  island  during  the 
whole  of  1895.  In  other  of  the  Spanish-American  countries  our  deal- 
ings have  been  very  limited,  owing,  we  believe,  in  a  large  measure,  to 
the  lack  of  transportation  facilities.    With  proper  reciprocal  treaties, 


TorTi  City. 
ydraulic- 

yed  aver- 

•ade  goes 


T  tl iron  oil 
itablislied 
)stly  from 

't  duty  of 


s  are  sent, 
'ansporta- 

:e  in  price, 
lization  of 


RECIPROCITY   STATEMENTS. 


423 


sucli  as  were  proposed  and  in  part  put  in  force  during  the  last  Admin- 
istration, we  and  other  United  States  manufacturers  should  do  a  large 
business  with  all  of  the  Spanish-American  nations,  if  direct  and  reg- 
ular lines  of  communication  were  opened..  In  this  connection,  the  facts 
cited  in  the  consular  report  on  our  trade  with  Brazil  are  eloquent.  We 
will  not  give  them  in  full,  but  note,  as  an  illustration,  that  England  buys 
annually  from  Brazil  about  $5,000,000,  and  sells  to  Brazil  $17,000,000, 
while  the  United  States,  buying  from  $58,000,000  to  $00,000,000  worth 
of  her  raw  material  annually,  sells  her  about  $8,000,000  of  our  products. 
There  are  five  steamship  lines  making  regular  voyages  and  a  large  num- 
ber of  tramp  steamers  making  irregular  voyages  from  the  Brazilian 
ports  to  the  United  States,  bringing  to  us  cotfee,  sugar,  rubber,  and 
hides,  while  there  is  only  one  line  of  steamers,  and  that  sending  a  ship 
twice  a  month,  from  the  United  States  to  Brazil. 

Without  attempting  detailed  answers  to  the  remainder  of  the  num- 
bered questions,  we  express  our  earnest  conviction  that  reciprocity  trea- 
ties with  nations  relatively  classed  as  non manufacturing  are  of  immense 
value  and  importance  to  this  country.  Our  own  trade  responded  quickly 
when  those  of  1890  were  put  in  force,  only  to  shrink  again  with  their 
annulment;  but  believing  our  home  market  to  be  the  most  valuable,  we 
would  deprecate  any  system  of  treaties  which  would  conllict  with  that 
proper  measure  of  protection  which  we  believe  it  the  first  duty  of  Con- 
gress to  enact  for  the  protection  of  United  States  manufacturers.  It  is 
not  apparent  to  us  that  the  principle  of  reci])rocity  can  be  applied  to 
advantage  to  our  relations  with  rival  manufacturing  nations,  and  with 
our  present  knowledge  we  should  favor  the  limitation  of  reciprocity 
treaties  to  American  nations. 


if 


.'  J 


1^,  Pa. 

and  the 

0.    Value 

iighths  of 
uth  to  be 


ed  to  the 
x\\  adver- 
Si)anish, 
of  Cuba, 
nance  of 
business 
nd  made 
figures 
se  to  be 
ring  the 
ur  deal- 
risure,  to 
treaties, 


^ 


A.  W.  Oolwell,  mecJianical  engineer,  designer  and  constructor  of  sugar 

machinery  J  New  York  City, 

2.  Sugar  machinery,  principally  for  plantation  use,  boilers,  anything 
that  may  be  required  on' a  sugar  plantation. 

3.  All  Spanish  America;  a  little  in  Sandwich  Islands. 

4.  Yes;  visiting  INfexico  and  Central  America.  Living  in  Cuba  three 
to  six  months  during  crop  sea?  jn. 

Kesident  agents  in  difierent  countries.  Advertising,  circulars  in 
Spanish.  Illustrated  books.  The  English  seem  to  absorb  all  that  is 
good  in  the  Sandwich  Islands,  very  little  going  there  from  the  States. 

European  manufacturers  send  a  partner  to  live  in  the  country  and 
marry  there  in  many  instances;  so,  getting  in  touch,  receive  orders 
direct,  without  the  intervention  of  middle  commission  men. 

A  great  deal  of  the  foreign  business  of  the  United  States  is  through 
commission  men,  which  makes  it  very  expensive;  but  it  is  safer,  as  they 
pay  us  before  the  goods  leave  the  country.  They,  having  branches  at 
Spanish-American  cities,  get  business  at  both  ends  of  the  route. 

5.  Cuba  has  at  times  higher  rates  against  American  imi)ort3.  I  can 
not  recall  this  being  the  case  with  other  countries.  I  have  met  German 
agents  in  Cuba  who  would  contract  to  deliver  a  lot  of  machinery  f.  o.  b. 
a  Cuban  port,  daty  paid,  at  cost  and  freight.  It  was  believed  by  those 
interested  that  the  agent  had  an  understanding  with  the  custom-house 
oflicers.    This  is  quite  common.    A  remedy — control  Cuba. 

6.  Mexico  is  considering  the  repeal  of  interstate  duties.    See  Con- 


424 


RECIPROCITY   STATEMENTS. 


sular  reports  No.  183,  for  December,  1895,  Joseph  G.  Donnelly,  con- 
sul-general, Nuevo  Laredo. 

7.  If  Si)anish  America  reduces  duties  on  American  exports,  it  throws 
the  trade  with  the  United  States,  especially  if  we  have  resident  a{;onts, 
sndsidize  steamers,  and  brin^  the  raw  piodncts  direct  instead  of  hav- 
ing them  go  to  England  first,  as  wool  from  Argentina  reaches  us  at  3 
cents  per  pound  advance  via  England. 

American  machinery  is  better  liked  by  Spanish  America,  but  duties, 
commission,  and  expenses  are  against  us  except  in  specialties,  Amer- 
icans are  not  inclined  to  give  two  or  three  years'  credits,  generally 
wanting  one-third  on  signing  contract,  balance  when  shipping  papers 
are  presented  to  commission  merchant  in  New  York. 
,     8.  About  one-tenth. 

9.  From  10  per  cent  to  25  per  cent. 

10.  Europe  produces  cheaper.  Satisfied  with  lesser  profits.  Costs 
less  to  do  the  business.  Having  resident  agents  taking  the  produce  of 
those  countries  in  trade  as  pay.  English  tramj)  steamers  carry  very 
cheap. 

11.  In  some  classes  of  sugar  machinery  we  can  make  an  article  that 
is  better  liked,  we  can  get  out  a  hurried  order  quicker,  and  the  time  of 
transi»ortation  being  shorter,  puts  many  orders  in  our  shops. 

The  Cubans  have  an  affection  for  Americans  which  favor  us.  Should 
Cuba  win  in  the  present  troubles  they  will  enact  laws  that  will  favor 
the  Stales  to  the  detriment  of  Europe.  This  will  give  the  United  States 
a  trade  of  from  $50,000,000  to  $100,000,000  per  annum.  This  will  be 
favorable  to  United  States  shijtping.  On  the  otlier  hand,  should  Spain 
win  we  \Aill  be  barred;  every  law  will  be  shaped  so  as  to  favor  tliose 
nations  that  took  Spanish  bonds. 

12.  In  the  n^ost  decisive  manner,  favorable.  The  repeal  was  death 
to  business.  During  the  life  of  the  treaty  with  Cuba  my  trade  was 
more  than  I  wanted.  I  refused  orders,  so  with  others  in  my  line.  At 
the  abrogation  of  the  treaty,  nothing  came  to  the  United  States; 
Europe  taking  what  orders  there  were,  but  businesshad  fallen  off  owing 
to  low  prices  of  sugar,  li  to  2  cents  per  pound  instead  of  o.\  orl  cents. 
The  war  coming  ended  all.  The  repeal  affected  us  the  same  in  all 
Spanish- American  countries. 

13.  Yes;  if  it  is  with  countries  which  furnish  material  that  we  can 
not  ])roduce.  'No;  if  with  Europe  who  can  flood  us  with  manufactured 
goods. 

James  G.  Blaine  was  favorably  considering  the  idea  of  demanding 
that  the  goods  of  countries  affected  by  the  reciprocity  treaty  should 
be  carried  by  the  ships  of  those  countries,  thus  barring  foreign  tramps. 

Eegarding  sugar,  I  would  rather  see  a  2-cent  bounty  given  Anun-ican 
sugar  growers,  whether  cane,  beet,  sorghum,  or  maple.  It  Mould  stim- 
ulate our  machine  shops  and  kindred  trades  to  the  extent  of  $50,000,000 
per  annum  for  ten  years  to  come. 

Agriculture  would  j '-  >fit  as  it  would  require  millions  of  acres,  and 
railroads  would  be  benefited  as  they  would  have  to  handle  the  raw 
product,  the  finished  sugar,  fuel,  etc.  I  had  two  beet-sugar  comjianies 
organized  that  would  have  started  to  handle  000  tons  of  beets  per  day 
each,  but  both  were  abandoned  when  bounty  ceased. 

A  few  days  after  the  arrival  of  your  inquiry,  I  received  a  letter  from 
a  party  in  the  Jity  of  Mexico.  I  send  copy  entire.  It  will  give  you 
some  inform.ition  as  to  the  difficulties  of  doing  business  against  cheai) 
European  goods. 


BECIPROCITY    STATEMENTS. 


425 


illy,  con- 
it  throws 
t  a};onts, 
a  of  liJiv- 
8  us  at  3 

it  duties, 
.  Anier- 
^■(Mierally 
,g  papers 


s.  Costs 
reduce  of 
arry  very 

tide  that 
le  time  of 

,  Should 
will  favor 
;ed  States 
lis  will  l)e 
uld  Spain 
Lvor  tliose 


as  death 

ade  was 

lie.    At 

States; 

ffowiiifj: 

1  cents. 

e  iu  all 


it  we  can 
factored 

mandinj; 
y  should 

tramps. 

ir.erican 
lid  stim- 
J,()00,()00 

;res,  and 

the  raw 

mi)anies 

per  day 

Iter  from 
five  you 
Bt  cheai) 


TJie  Cincinnati  Tool  Company,  Cincinnati,  Ohio. 

Manufacture  fine  mechanics'  tools. 

Paid  in  <!a')ital,  $18,000;  number  of  people  employed,  abont25;  value 
of  ]>rodutt,  ..bout  $.'35,000. 

Our  market  is  nearly  entirely  home,  althoujjh  we  have  some  trade  iuj 
Canada  and  the  lower  provinces,  and  ship  a  few  goods  to  other  coum' 
tries.  Probably  not  one-tenth  of  our  business  is  export  business.  V  e 
sell  to  foreign  dealers,  asa  rule,  through  commission  houses,  as  we  i)refei' 
giving  them  a  small  commission  for  spot  cash  rather  than  take  chances 
of  a  long-drawn-out  account  in  a  foreign  country. 

We  have  made  direct  ettbrts  to  extend  our  foreign  trade  in  Venezuela 
and  Nicaragua  through  a  direct  representative  with  sami)les.  The 
trade  has  not  been  so  far  satisfactory.  In  W'ne/uela  our  goods  seem 
to  be  of  too  high  a  grade  for  the  mechanics  of  that  country;  that  is, 
the  i)ri('es  for  our  articles  are  too  high.  The  freight,  duties,  and  trans- 
portation charges  iu  that  country  add  so  greatly  to  tlie  original  cost  of 
the  goods  here,  it  gives  us  very  little  chance  of  selling. 

In  answer  to  your  article  No.  7,  we  will  state  that  in  case  we  have 
reciju-ocity  treaty  with  Venezuela  we  think  the  arrangements  could  be 
such  that  the  duties  o.i  our  goods  down  tiiere  would  be  greatly  h)wercd, 
giving  us  a  chance  to  sell,  where  we  seem  to  have  very  little  chance 
now. 

The  only  suggestion  we  could  make  to  enlarge  our  trade  with  this 
country  would  be  of  the  nature  of  "You  tickle  me  and  1  tickle  you" 
plan.  In  other  words,  if  we  were  to  favor  the  products  of  that  country 
we  would  expect  them  to  favor  ours  in  return. 

In  answer  to  your  question  No.  0,  we  would  state  we  think  the  removal 
or  reduction  of  customs  duties  imposed  by  foreign  nations  upon  the 
goods  we  manufacture  would  be  a  very  great  help  to  us  in  selling  them 
iu  those  countries.  For  instance,  where  the  duties  are  35  per  cent,  as 
they  are  in  Canada,  the  mechanic  has  to  pay  that  much  more  for  the 
goods,  and  i)Ossibly  for  this  reason  uses  a  lower  grade  of  goods,  or,  in 
the  border  towns  he  crosses  the  boundary  and  bu;^  s  the  goods  in  Detroit 
or  Port  Huron  at  the  American  price,  puts  them  in  his  pocket,  and  goes 
back  without  ])aying  duties. 

Our  output  is  h.ardly  as  large  as  it  was  six  years  ago.  The  cost  of 
production  is  not  so  high.  Wages  are  a  little  lower.  Eaw  material  is 
considerably  lower.  Not  much  change  in  transportation.  Selling  prices 
are  much  lower  than  they  were  six  years  ago. 

We  meet  coiiii)etition  in  every  foreign  country  in  Avhich  we  have 
attempted  to  sell  goods — in  Australia,  south  Africa,  South  America, 
and  Central  America. 

In  answer  to  your  (juestion  No.  14,  foreign  competition  has  the 
adv.antage  of  cheap  labor  and  direct  transportation  to  foreign  i)orts, 
subsidized  lines  of  steamshi])S  running  regularly  to  all  ]>arts  of  the 
world,  giving  them  much  better  and  quicker  communication  with  the 
foreign  markets.  We  have  no  fear  of  foreign  trade  when  the  question 
is  simply  one  of  quality  of  the  goods;  o^-  this  point  the  United  States 
can  beat  the  world.  But  when  we  come  to  the  price  of  gf^ods  in  our  line, 
where  so  much  of  the  work  is  necessarily  hand  work,  we  .'ue  not  so 
well  able  to  coini)ete  in  the  question  of  price,  although  we  believe  that 
our  men  do  a  good  de.il  more  work  in  a  day  than  a  foreign  workman. 
But  he  is  paid  probably  twice  as  much. 

In  answer  to  your  question  No.  16,  will  stata  th.at  we  do  not  know. 
Judging  from  our  experience,  it  has  remained  about  the  same. 


426 


RECIPROCITY    RTATEMENTfl. 


Ill  answer  to  No.  17,  we  ought  to  do  50  per  cent  more  bnsinoss  for  the 
d(»nicstic  market,  and  coidd  easily  do  50  per  cent  more  for  the  foreign 
market.  In  <;ther  words,  if  we  were  running  our  shop  to  the  fullest 
capacity,  and  under  the  most  favorable  conditions,  we  could  double  our 
present  production  at  very  little,  ii  any,  extra  outlay. 

The  j^^eneral  efl'ect  of  recii)rocity  treaties  was  favorable  to  the  export 
trade,  and  we  believe  their  repeal  was  a  great  mistake. 

(i)uestiou  19  we  can  not  answer,  not  being  farmers. 

We  most  assuredly  favor. the  application  of  reciprocity  principles  to 
future  tarift",  as  we  believe  the  fciouth  and  Central  vVmerican  nations  all 
feel  i)arti('ularly  grateful  to  our  (!ountry  for  the  manner  in  which  she 
has  acted  in  the  Venezuelan  question,  and  in  the  manner  in  which  we 
ho])e  she  will  act  in  the  (Jubau  question.  VV^e  believe  good  b'vnking  facil- 
ities with  American  capital  in  the  South  and  Central  American  coun- 
tries should  be  fostered  and  encouraged;  direct  steamship  lines  slumld 
be  subsidized,  and,  above  all,  we  should  have  first-class  business  rci)re- 
sentatives  for  consuls  in  the  dillerent  trade  centers  of  tliose  countries. 
If  our  consuls  were  trained  and  able  business  men,  as  they  should  be, 
having  the  business  education  and  knowledge  of  the  country,  together 
with  its  customs,  we  believe  the  manufacturers  of  the  United  States 
would  gain  greatly  by  it.  One  of  the  greatest  drawbacks  to  our  foreign 
relations,  we  believe,  is  the  constant  changing  of  our  consular  force. 
If  the  force  were  working  under  civil-service  rules,  it  would  be  a  god- 
send to  the  country,  because  in  that  case  we  would  not  have  some  "  Way- 
back  from  Duck  Creek-' misrepresenting  us  in  some  important  business 
center,  simply  on  account  of  his  political  pull  with  the  "xjowers  that  be." 


AGUICULTURAL  IMPLEMENTS. 


'Hi 


CIKCIJLAR  OF  INQUIRY  TO  MANUFAGTCTRERS. 

COMMITTEK   ON  WAYS  AND   MeAN«, 

House  of  Kepue.skntatives, 
Washington,  1).  C,  March  4,  1896. 

Sm:  In  order  that  they  may  give  more  intelligent  consideration  to 
pendiiif;  and  proposed  legislation,  the  subconnnittee  of  the  Committee 
on  Ways  and  Means  of  the  House  of  Representatives  in  charge  of  bills 
relating  to  reciprocity  arrangements  and  commercial  treaties  would  be 
greatly  obliged  if  you  would  forward  them,  at  your  earliest  conven- 
ience, your  viewH  and  suggestions,  and  such  informaiion  as  you  are 
able  to  furnish  upon  the  following  points,  namely: 

1.  Give  full  name  and  address  of  Arm  or  company. 

2.  Lines  of  manufacture. 

3.  Amount  of  capital,  nr  nbe^'  of  persons  employed,  and  value  of 
annual  product. 

4.  Do  you  find  your  market  at  home  or  abroad,  and,  if  both,  in  what 
proportion  ? 

5.  Do  you  sell  direct  to  foreign  dealers  or  through  commission  houses? 

6.  Have  you  made  any  direct  eflbrt  to  extend  your  foreign  trade; 
and  if  so,  by  what  means,  with  what  success,  and  in  what  countries? 

7.  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  jjrevent  the 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  means  by 
which  they  may  be  removed? 

8.  What  changes  have  recently  occurred  in  the  tariffs  of  foreign 
countries  so  far  as  they  relate  to  your  lines  of  manufacture? 

9.  How  far  would  the  removal  or  reduction  of  the  customs  duties 
imposed  by  foreign  nations  upon  the  merchandise  in  which  you  deal 
aid  in  the  extension  of  your  export  trade? 

10.  What  is  the  output  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  How  does  the  present  cost  of  production  compare  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  s^a  and  land? 

12.  How  do  present  selling  prices  compare  with  those  of  six  years 
ago? 

13.  What  competition  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  markets? 

14.  What  advantages  do  your  foreign  competitors  have  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

15.  To  what  extent  can  you  compete  with  foreign  manufacturers  in 
quality  and  prices  ? 

427 


nVi 


fti> 


428 


RECIPROCITY    STATEMENTS. 


! 


■iJ!i 


1 


18.  Ha8  the  total  product  of  the  United  States  in  year  line  of  manu- 
facturo  inc-voased  or  decreased  during  the  last  six  yenrs? 

17.  What  proportion  of  the  total  present  and  possible  output  in  your 
lines  of  inanufa(;turo  in  the  United  States  can  be  absoi^bed  by  the 
domestic  market;  and  what  would  be  your  estimate  of  the  natural  sur- 
plus for  export  if  all  manufacturers  in  your  lines  were  producing  to 
their  full  capacity  ?  (The  ])urpose  of  this  inquiry  is  to  secure  as  accurate 
an  estimate  as  possible  of  the  necessity  for  new  foreign  markets  to  the 
manufacturors  of  the  United  States.) 

18  Was  the  general  ett'ect  of  the  reciprocity  treaties  made  in  1890 
favorable  or  unfavorable  to  the  export  trade  of  tho  United  States,  and 
what  was  the  elfect  of  their  repeal? 

10.  What  w!)s  the  effect  upon  farm  products  particularly? 

(If  your  replies  to  inquiries  17  and  18  are  based  upon  actual  experi- 
ence, ])lease  give  details  as  fully  as  possible.) 

20.  Do  you  favor  the  application  of  the  reciprocity  principle  to  future 
tariff  legislation,  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible? 

These  inquiries  have  been  forwarded  to  several  hundred  persons, 
firms,  and  cori)oratioiis  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  rejdies 
are  intended  for  ])ublication  wUli  a  report  which  the  Committee  on 
Ways  and  iMeans  will  make  to  the  House  of  Eepresenta fives;  but,  if 
so  desired,  any  information  received  will  be  regarded  as  confidential. 
All  values  should  be  expressed  in  United  States  gold,  and  all  quantities 
in  our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  inquiries  will  be  appreciated. 
I  am,  sir,  your  obedient  servant, 

A.  J.  HorKiNS,  Chairman. 


M 


REPLIES. 


A.  B.  Farquhar  Company,  Yorif,  Pa. 


2.  Manufacture  of  machinery,  engines,  sawmills,  and  agrictiltnral 
implements. 

;;.  Nominal  capital,  $oOO,«)0().  Keally  about  $600,000,  all  paid  in. 
Average  of  oOO  workmen  employed.  Value  of  annual  iiroduct  about 
$000,000. 

4.  The  world  is  our  market.  About  one-third  of  our  product  goes 
abroad,  sometimes  half. 

5.  Uoth  to  foreign  dealers  and  through  commission  houses. 

6.  Yes;  a  good  deal  by  correspondence,  by  traveling  abroad,  and  by 
sending  agents.     We  have  been  successful. 

7.  Only  such  restrictions  as  we  might  expect  when  i*^^  is  borne  in  mind 
that  we  are  co'itinually  phu'ing  impediments  in  the  way  of  trade  in 
the  form  of  unnecessary  and  onerous  duties.  Obviously  the  way  to 
encouiage  foreign  tr'<le  is  to  remove  those  duties  so  far  as  pt)ssible. 
In  other  words,  td  nave  a  tariff  solely  for  revenue  and  reform  our  navi- 
gation laws,  making  ships  free  and  encouraging  commerce  instead  of 
discouraging  as  we  do  at  present. 


II 


RECIPROCITY   STATEMENTS. 


429 


of  manu- 

t  in  your 
I  by  the 
ural  sar- 
in ci  11  j;  to 
accurate 
its  to  the 

e  in  1890 
;ates,  and 


\\  expcri- 

to  future 
liziiig  the 
[)ean  and 

persons, 
)f  various 
le  replies 
inittee  on 
!s;  but,  if 
itidential. 
quantities 

i  subjects 
ied. 

lirman. 


Iricultnral 

paid  in. 
let  about 

Uict  goes 


I,  and  by 

|e  in  mind 

trade  in 

way  to 

possible. 

lour  navi- 

lustead  of 


i 


8.  Through  the  efforts  of  our  ministers  and  consuls  duties  upon  our 
line  of  manufactures  have  been  reduced.  Would  especially  compliment 
Hon.  W.  1.  Buchanan,  minister  to  Argentina,  for  his  efforts  in  this  line. 

9.  It  would,  of  course,  immensely  increase  our  trade. 

10.  The  outjmt  of  our  establishment  now  is  about  the  same  in  value 
as  it  was  six  years  ago.  It  was  more  in  1893,  however,  than  in  1890. 
It  has  suffered  Irom  the  8ilver-<ra/.e  panic. 

11.  Labor  is  about  the  same  as  six  years  ago,  but  the  '^ost  of  raw 
material  is  tauch  less.  Transportation  is  somewhat  less  out  not  in 
proportion. 

12.  Six  years  ago  we  received  for  goods  on  an  average  25  per  cent 
more  than  we  do  at  i)resent,  although  the  cost  of  manui'acture  has  not 
declined  over  10  per  cent.     Hence  it  is  very  dillicult  to  make  a  profit. 

13.  We  are  not  specially  troubled  with  foreign  competition.  The 
greatest  competition  is  in  America.  We  need  no  prote(;tion  whatever. 
The  freer  you  make  trade  the  better  it  will  L3  for  the  Anierican  manu- 
facturer. Could  we  abolish  duties  altogether  and  obtiiin  our  raw 
material  free,  encouraging  other  nations  to  remove  duties  upon  our 
goods  by  reciprocity  or  otherwise,  America  would  be  the  great  numu- 
iajturing  center  of  the  world.  Our  shops  would  bo  all  busy  and  work- 
men all  employed  at  good  wages. 

14.  Foreign  competitors  have  an  advantage  of  from  25  to  50  i)er  cent 
in  wages;  about  10  to  15  per  cent  now  in  metals;  fully  25  per  cent  in 
transportation;  yet  Ave  have  no  dinicnlty  in  running  them  out  (»f  any 
market  since  American  workmen,  with  impioved  machinery,  will  accom- 
plish fully  double  as  much  per  day  as  the  woi  kmen  of  foreign  countries. 

15.  Can  compete  with  foreign  manufacturers  to  any  extent  although 
hampered  by  our  insane  shipping  and  tarilf  laws. 

10.  The  total  product  has  increased  during  the  past  six  years. 

17.  About  nineteen-twentiaths  of  the  manuiiu^tures  in  our  line  are 
absorbed  by  the  domestic  market.  If  all  the  fact(nics  in  our  line 
were  running  full-handed  we  could  manufiK  tare  about  double  the 
amount  needed  for  domestic  purposes,  and,  of  course,  if  we  all  ran  full- 
handed  we  could  manufacture  cheaper.  In  other  words,  if  we  c(nild 
export  half  of  our  product,  as  we  would  do  under  favorable  laws,  we 
could  manufacture  much  cheaper,  since  shoj*  exiienses  would  be  less. 
Our  domestic  customers  could  therefore  buy  cheaper,  and  as  workmen 
Y'ould  be  all  employed  they  would  get  better  wages. 

18.  The  general  etlect  of  the  recii)rocity  treaties  were  unquestionably 
favorable,  and  the  effect  of  their  re])eal  unfavorable.  I  w  as  not  enthusi- 
astic for  reciprocity,  fearing  that  it  would  interfere  with  tariff  reform, 
but  must  admit  that  Mr.  lilaine  was  correct  in  his  conclusions. 

19.  Farm  products  were  not  so  mu»h  aiVccted  as  manufa»tiires, 
although  the  farm  partook  of  the  general  prosperity,  and  lower  prices 
of  sugar,  coffee,  etc.,  of  course  benelited  it. 

20.  Yes,  I  would  now  favor  the  general  application  of  rccijirocity 
abroad.  It  would  not  be  so  effective  as  the  abrogation  of  duties,  but 
Would  prove  a  vast  benefit  if  we  can  not  make  trade  free.  We  should 
unquestionably  have  reciprocity  treaties  with  Camida,  Cuba,  Mexico, 
and  the  South  American  liepublics. 

In  conclusion,  would  say  the  writer  has  been  mannfarturing  agricul- 
tural inq)lcments  and  machinery  for  forty  years,  and  his  foicign  trade 
is  extensive  in  these  articles,  probably  the  most  so  of  any  implement 
manufacturer  in  America. 


i-  t 


mt 

"^^ll 

^V^ 

:;fl  : 

;l: 

'^^K 

'wt  ' 

ri'H    ' 

■1 ' 

430 


RECIPROCITY   STATEMENTS. 


Chattanooija  Floir  Company,  Chattanooga,  TenTb. 


2.  PloAvs,  plow  repairs,  cane  mills,  evaj ."orators,  etc 

3.  About  ;><)(). 

4.  l-'our-fiftlis  domestic,  oiie-fiftli  foreign. 

5.  Nearly  entirely  direct. 

6.  By  visiting"  in  person. 

7.  lveci])rocity. 

8.  None  that  we  are  aware  o£ 

9.  Do  not  know. 

10.  Uas  increased. 

11.  Something  (cheaper. 

12.  Sonu'thing-  less. 

l.J.  In  Liitin  Americji,  English,  GermaTi,  and  French. 

14.  Clieai)or  labor  and  lower  transportation. 

15.  Can  excel  in  quality  and  make  quite  as  low  prices,  other  things 
being  equal. 

10.  Probably  increased. 

17.  Can  only  estimate,  but  it  would  be  largely  in  excess. 

18.  Favorable;  the  repeal  was  a  mistbrtune. 
20.  Yes. 

The  writer  was  in  South  and  Central  America  at  the  time  of  the 
repeal  of  our  reciprocity  measures,  and  the  general  tone  of  Ibreign  buy- 
ers was  adverse  to  it,  and  some  were  bitter  in  their  objectinis.  We 
have  no  <h)ubt  it  was  a  great  injury  to  our  foreign  trade.  Onr  own 
foreign  business  was  seriously  imi)aired.  We  believe  the  reason  that 
more  has  not  been  said  about  the  matter  is  that  the  trade  of  this  country, 
especially  in  South  and  Cential  America,  is  so  limited.  Kecjiprocity,  if 
mjide  stable,  would  ii. crease  interest,  and  interest  would  increase  trade. 
The  manufacturers  need  encouragement  to  spend  money  in  seeking 
these  new  fields,  and  reciprocity  is  one  way  to  do  it.  There  are  also 
other  ways  in  whicli  the  Government  should  give  aid. 


Moiine  Ploic  Company,  MoHne,  III, 

2.  Agricultural  implements. 

3.  Two  million  dollars;  employ  800  men;  annual  product,  $2,000,000. 

4.  IMaiket  is  mostly  at  home,  but  we  sell  some  abroad;  i)ossibly  5  to 
10  per  cent  of  our  output  goes  abroad. 

").  We  sell  through  con  mission  houses,  and  also  direct  to  foreign 
dealers. 

0.  We  have  nnide  no  direct  effort  to  get  foreign  trade  except  by 
advertisement  and  (•orresi)ondence,  sending  no  representatives  abroad, 
except  into  Manitoba. 

7.  We  are  aware  of  the  fact  that  there  is  a  protective  tariff  in  force 
i!i  our  trade  i-elations  with  C;Miada,  particularly  as  far  im  the  trade  of 
Manitoba  is  (•(mcerned,  there  beuig  a  25  ])er  cent  ad  valorem  duty  on 
agricultural  implements.  We  believe  a  reciprocal  effort  could  be  made 
with  the  Canadian  Governnu'nt  to  I'einove  the  tariff  on  imi)lements,  as 
the  large  nuiss  of  the  farming  community  in  Canada  are  eagerly  seek- 
ing to  reduce  or  remove  (Mitirely  the  taritf  on  implements. 

8.  The  oidy  tariff  changes  which  have  oc<'uired  that  we  know  of 
which  atfccted  our  trade,  was  the  reduction  of  10  ]»(M'cent  on  the  duties 
between  the  United  States  and  Canada;  formerly  the  tariff  was  35 per 
cent,  now  23. 


RECIPROCITY   STATEMENTS. 


431 


9.  The  reduction  of  this  ]0  per  cent  ad  valorem  daty  has  had  a  tend- 
ency to  stiniuhite  tlie  trade  with  this  country,  an<l  if  it  were  removed 
American  manufacturers  would  get  almost  the  entire  trade  ol  (Jauada, 
and  particularly  Manitoba,  on  agricultural  implements. 

10.  We  have  increased  about  1J5  per  cent. 

11.  The  cost  of  production  has  decreased  about  15  per  cent;  trans- 
portation very  little,  if  any. 

12.  Selling  prices  have  been  reduced  20  per  cent. 

13.  We  meet  the  competition  of  England,  Canada,  and  Germany 
chiefly  in  agricultural  implements. 

14.  Foreign  competitors  have  a  great  advantage  over  us  in  tlie  prices 
paid  for  labor.     How  transportation  charges  compare  we  do  not  know. 

15.  The  quality  of  American-made  implements  is  recognized  the 
world  over  as  being  superior  to  anything  on  earth,  and  brings  better 
])rices;  but  foreigners,  when  they  get  samples  of  Anjericun  goods,  r.ni 
imitate  them  so  closely  that  eventually  there  will  be  only  a  sentimental 
dirt'erence  upon  whicli  to  claim  a  higher  i)riee. 

10.  The  total  product  in  our  lino  of  goods  has  increased  considerably 
during  the  past  few  years. 

17.  We  think  from  80  to  85  per  cent  of  the  manufactures  of  the  United 
States  can  be  absorbed  in  the  domestic  mariiv,t.  Were  the  factories  in 
this  country  to  be  run  to  their  capacity,  they  could  manufacture  jaob- 
ably  double  the  amount  of  goods  they  are  now  making;  that  is,  if  they 
had  trade  enough  to  run  full  the  year  round.  At  least,  such  we  belime 
to  be  true  of  the  factories  here  in  Moliue,  which  are  the  largest  of  the 
kind  in  the  world. 

18.  The  effect  of  the  reciprocity  treaties  and  the  repeal  was  not 
noticeable  in  our  line  of  business. 

19.  We  believe  that  the  price  of  farm  products  was  increased  by  the 
formation  of  the  reciprocity  treaties  and  was  decreased  by  the  repeal 
of  them. 

20.  We  heartily  favor  the  application  of  the  recii)rocity  principle  and 
the  enactment  of  a  general  law  authorizing  the  President  to  negotiate 
reciproc  ty  treaties  with  both  European  and  American  nations  ad  soon 
as  possible. 


The  Eobinson  Chilled  Plow  Company,  Canandaigua,  N.  Y, 

2.  Plows. 

3.  Twenty-five  thousand  dollars;  15  persons;  $12,000, 

4.  At  home. 

9.  Could  not  say;  probably  would  help  it. 

10.  D(»ubled. 

11.  Twenty  per  cent  less. 

12.  Twenty-live  per  cent  less. 

17.  In  our  opinion,  not  more  than  one-hall"  of  the  possible  output 
couhl  be  absorbed  iu  the  United  States. 
20.  Yes. 


The  Johnston  ITarvester  Company,  Baiavin,  ¥.  Y", 

2.  Manufacturers  of  harvesting  machines  and  agricultural  imple- 
ments. 

3.  All  the  nations  of  Europe,  Asiatic  Russia  and  Turkey,  North  and 
Bouth  Africa,  and  the  Argoutiuo  liepublic, 


r 


432 


RECIPROCITY   STATEMENTS. 


4.  We  are  constantly  making  direct  elforts  to  extend  our  forei^ii  trade. 
Our  usual  nieMiod  is  to  ship  samples  uf  our  machines  into  the  new 
country  an<l  have  them  ])racti('ally  worked  in  the  harvest  fields  by  com- 
petent experts.  Usually  an  order  follows,  liiast  ('olony,  iSouth  Africa, 
and  the  Argentine  Hepul)lic  are  the  sections  where  a  good  trade  has 
been  most  recently  established. 

5.  No;  except  extreniely  high  duties  in  France. 

(5.  The  new  tariff  of  the  l'"rench  Jvepnblic,  which  went  into  eft'ect  iu 
1892,  very  greatly  increased  the  duties  on  our  goods. 

7.  The  only  foreign  country  where  our  trade  is  ai)])reciably  alfected 
by  the  tariff  is  France,  and  while,  by  ])ersistent  and  judicious  elforts 
our  trade  there  is  increasing  satisfactorily,  we  have  no  doubt  our  sales 
there  would  be  nuu'h  greater  with  a  low  tariff.  Inntaticms  of  our 
machines  are  being-  niannliu'tured  on  a  large  scale  in  I'^rance,  which  is 
only  profitable  when  having  the  advantage  afforded  by  the  present 
high  protective  tariff. 

8.  5lore  than  double. 

9.  Keduceti  somewhat. 

10.  We  know  of  none. 

11.  In  our  line  American-made  nsac^-ines  are  ahead  of  all  other 
nations,  and  usually  bring  somewhat  better  prices. 

12.  Our  impression  is  that  it  was  favorable,  and  we  regret  the  repeal 
of  the  treatic, 

l-i.  Yes. 


Marion  Manufacturing  Company^  Marion^  Ohio. 

Building  engines  and  thr:  shers. 

Have  at  i)resent  no  foreign  trade  and  can  not  give  your  committee 
any  information  on  the  <iuestions  you  submit. 

iieciprocal  relations  should  undoubtedly  be  maintained,  but  in  order 
to  use  everybody  alike  it  would  approach  so  nearly  to  free  trade  that  it 
would  be  impossible  to  adopt  it  as  a  national  measure,  although  it  ought 
to  be  done. 


Stodilard  Manufacturing  Company,  Dayton,  Ohio. 

We  have  had  an  extensive  foreign  trade  in  our  line  for  the  past 
twenty  years,  and  have  for  many  years  been  the  largest  exporters  from 
this  country  in  our  line  of  agricultural  implements.  Pritu'  to  1894  our 
foreign  trade  would  run  from  ;{,(»()()  to  1,000  machiiu^s.  Since  then  it 
has  fallen  off  about  one-third.  Our  foreign  trade  is  largest  in  Europe, 
the  bulk  of  it  being  in  (iermany,  lOngland,  llnssia,  and  Austria.  We 
also  have  (ionsiderable  trade  in  South  America  an<l  Australia.  We  have 
a  branch  oHice  and  general  agen  'y  located  at  Brussels,  Ikdgiuui,  that 
has  charge  of  our  European  trade. 

In  answer  to  your  question  T),  would  state  that  we  have  written  to 
our  Brussels  office  to  furnish  us  such  late  information  and  facts  as 
would  ])robably  be  of  interest  to  your  conunittee  at  this  time.  In  the 
meantime  we  take  the  liberty  of  attaching  herewith  cojjies  of  letters 
we  received  some  time  ago,  and  we  beg  lea\e  to  call  your  particular 
attention  to  that  part  of  Mr.  Sillcox's  letter  referring  to  the  exorbitant 
United  States  consul  fees,  etc.     llere,  iu  our  opinion,  is  an  oi»portunity 


RECIPROCITY    STATEMENTS. 


433 


iuii  trade, 
the  new 
Is  by  com - 
til  Africa, 
trade  has 


0  eflect  ill 

y  alVected 
us  eitorts 
,  our  sales 
>ns  of  our 
,  which  is 
e  present 


all  other 
the  repeal 


committee 

it  in  order 
de  that  it 
h  it  ought 


the  past 
rters  from 

181)4  our 
!e  then  it 
II  Euroi)e, 

ria.     We 

We  have 
;iuin,  that 

ivritteu  to 
facts  as 
e.  In  the 
of  letters 
particular 
exorbitant 
•portunity 


for  the  United  States  Government  to  aid  its  citizens,  who  are  seekinj? 
foreign  trade,  in  a  way  and  manner  that  does  not  involve  the  political 
(piestions  now  agitating  (Congress  and  the  ])eople.  In  many  of  the  Euro- 
pean G  jveriiments,  especially  France,  (Jermany,  and  llussia,  the  high 
tariffs  on  farm  machinery  and  the  discriminations  against  the  United 
States  have  of  Ifite  years  seriously  all'ected  and  curtailed  our  foreign 
trade,  and  we  have  not  only  this  to  contend  with,  but  are  robbed  by 
the  foreign  manufacturer;  for  example,  one  of  the  leading  farm  inijiJe- 
ments  madt>  by  us  and  protected  in  this  country  by  United  States 
patents,  and  with  whi(th  for  many  years  we  have  had  a  large  export 
trade,  is  manufactured  in  (Germany  by  seven  different  concerns,  an  oxacjt 
duplicate  of  ours,  and  three  of  these  pirates  have  the  gall  not  only  to 
duplicate  our  machine,  but  to  use  a  facsimile  of  our  name  and  address 
on  their  coi)y  of  our  machine. 

The  result  of  this  increase  of  tariff"  duties,  discriminating  against  the 
United  States,  and  the  unfair  competition  and  imitation  of  the  foreign 
manufacturer,  has  resulted  in  our  being  driven  to  a  reduction  of,  say,  20 
lier  cent  in  our  prices  in  the  foreign  markets  as  compared  with  six  years 


II 


ago. 


Give  the  American  manufacturer  of  agricultural  implements  dii  equal 
chance  in  the  world's  market  and  he  "v.  ill  sweep  the  field."  He  asks 
no  favors.  lie  wants  no  protection.  Keciprocity  will  not  affect  his 
business  directly  in  any  apprecuable  degree,  but  indirectly  he  will  bo 
benelited  by  it,  and  therefore  we  favor  such  legislation  by  Congress. 


[Letter  1.] 

T?RUfiSET.8,  May ,?.'?,  !.<f94. 
Stoddard  Manufacturing  Company,  Dayton,  Ohio. 

Dkar  Sirs:  I  liavo  learned  ihronjfli  tlio  nowHpapers  that  the  manufacturers  in 
Anu'ricu  have  awakened  to  the  fact  that  HonietliiuK  must  be  done  to  improve  ami 
]ir()t('ct  i'orci^ti  trade  We  arc  nearly  sliut  out  in  Franco,  and  other  countries  are 
iiiakinif  arraiiijfouK'iit.s  to  do  tlic  same  if  we  are  not  goinj^  to  have  commercial  treaties. 
Count  Alberto  do  (iuintana,  wlio  has  Just  bcon  elected  senator  in  Spain,  writes  nio 
that  ho  is  jioin^  to  tr,\  to  obtain  a  recijirocity  treaty  between  Spain  and  the  United 
States  for  a,nricultnral  machines.  France  also  stands  in  readiness  to  do  the  same 
lliiiii;,  and  wc  will  assist  you  as  much  as  we  can  on  this  side  to  brinj;  this  about. 
Vou  can  readily  understand  that  there  is  no  country  over  here  to  make  you  great 
coiTipetition;  ])ossildy  Germany  may  <lo  so  for  some  machines,  but  for  years  to 
come  no  country  on  the  continent  of  I'-urope  will  be  able  to  manufacture  or  sell 
agricultural  niaihines  or  tools  in  the  United  States. 

Therefore  all  the  a<lvantagcs  will  be  on  our  side,  and  it  will  make  a  much  better 
fe(!ling  with  all  the  manufacturers  and  dealers  on  the  continent  of  Europe.  I  wish 
y<pu  would  agitate  this  question  and  try  to  bring  Congress  to  a  leali/ation  of  the 
situation.  Any  facts  or  statistics  yon  may  wir>t  I  will  furnish  you  from  Kuroix-, 
and  any  quest  ions  or  information  you  or  your  colleagu(>s  may  d(  sire  to  have,  put  for- 
wanl  to  me,  and  I  will  bo  able  through  my  connections  to  attend  and  reidy  promptly 
to  all  your  inquiries. 

Another  ((ucstion  comes  up,  and  this  Is  of  great  importance  to  ns;  that  is,  in  regard 
to  all  notary  fees  that  we  are  ol)liged  to  paj'  to  United  Stat(is  consuls.  No  other 
(•niintry  charges  H\ieli  fees  as  the  United  States  does  for  certifying  tn  the  signature 
of  an  American  citizen  abroad.  I  wanted  to  return  some  goods  the  other  day  and 
the  notary  fees  amounted  to  more  than  the  whole  freight;  in  fact,  1  had  to  i)ay  $10 
for  it.  In  En,glai\d,  (ierniany,  or  iiuy  other  large  country,  the  foes  would  never  have 
been  over  50  cents.  During  the  Kn8S')-Gernian  tarilf  war  wo  had  to  make  out 
tickets  for  origin  of  goods  that  were  lying  in  Antwerp,  and  if  the  ifussian  miuisttu* 
here  had  insisted  on  my  signature  being  eertiticd  to  l)y  the  United  States  ccmsiil  It 
would  have  cost  us  tloo  or  $500  this  last  year,  but  the  mayor  of  IJrussels  kindly 
visi'd  my  signature,  which  cost  10  cents,  and  the  Hnssian  minister  received  the 
same  as  if  the  consul  had  vist'-d  it,  and  saving  $l.'.r)()  for  every  signature. 

I  would  \[ki\  also  to  call  your  attention  to  another  fa<t.  If  we  have  any  dilll- 
culties  ua  commercial  nun  and  should  go  to  the  legation  or  uonHulutu  for  advice,  wo 

H.  Kep.  22{i:i 28 


434 


RECIPROCITY    STATEMENTS. 


soldoin  got  it,  and  if  tlioy  do  give  it  we  nro  taxed  for  it;  and  in  fact,  to  sum  np  the 
wlirtle  matter  as  a  coninicriiiil  lirni,  we  only  seek  to  avoid  cui.i'ng  in  contact  witli 
the  Uiiilod  StatcH  anllioriticH  abroad,  owing  to  tlie  tact  that  we  reioivo  veiy  little 
]»rotecti(iii  or  attention,  and  have  to  pay  for  it  ^o  cxorbitant'y.  It  Hccnis  to  nie  that 
the  United  States  (Jovornincnt  could  be  bronnht  to  understand  and  adopt  a  system 
similar  to  the  one  used  by  Knglnnd  and  other  nations — of  having  a  moderate  and 
reasonable  charge  for  all  notary  and  other  work.  The  United  States  should  give 
attention  and  ])roto('tiou  to  their  citizens  abroad  by  using  stamjis  furnished  by  the 
Government  for  any  notary  act  or  other  work  the  consulate  is  called  ui)ou  to  do. 
These  stamps  aie  furnished  by  the  Government  the  same  as  the  postage  8tam))8,  and 
must  be  a]>pli(!d  to  each  document  ami  the  consul's  seal  put  over  it.  We  are  also 
obliged  to  ])ay  for  the  passports,  and  every  time  they  are  vist^d  by  the  consul  or 
United  States  minister  we  have  to  i)ay  $1,  while  other  countries  never  charge  over 
2t")  cents,  and  even  some  of  the  larger  countries  never  charge  anything  for  visaing 
passports. 

As  the  United  States  are  seeking  foreign  trade  and  sending  out  their  people  to 
solicit  the  same,  all  those  items  and  expenses  will  become  more  and  more  burdensome 
to  the  manufacturer.  Comjictition  becomes  keener,  as  items  of  expense  like  the 
above  will  be  looked  after  more  carefully  than  heretofore. 

I  should  like  to  see  th(>,  day  come  when  every  citi/en  of  the  United  States  will  be 
protected  as  thoroughly  as  the  lOn^flishmen  are.  It  is  tinte  now  that  the  luanufac- 
tiircrs  of  the  Uniteil  States  looked  into  these  matters  carefully. 

Always  ready  to  give  you  further  inl'orrnation,  and  trusting  there  may  be  some 
gt)od  come  out  of  it,  I  am 

Yours,  faithfully,  Geo.  W.  Sillcox. 


[Letter  2.) 

Aroi'ST  31,  189J. 
Stowdard  Matukacturing  Company,  Dayton,  Ohio. 

(Ji:NTt,i:MiCN :  1  hand  you  inclosed  a  letter  from  Mr.  Alberte  de  Guintana,  senator  in 
the  courts  at  Madrid,  and  formerly  governor  of  the  isle  of  Cuba,  in  the  relation  of 
bringing  about  a  connncrcial  treaty  between  the  United  States  and  Spain. 

1  would  like  you  to  work  strongly  with  the  idea  of  arranging  through  Congress, 
BO  that  wo  can  liave  at  least  ijuite  as  good  a  chance  as  Gernumy  and  Great  Britain, 
on  the  continent  of  Kurop<>,  as  I  have  already  informe<l  you  that  France  charges  5 
francs  more  a  100  kilos  to  America  than  Germany  and  Great  Britain. 
Yours,  faithfully, 

Geo.  W.  SiLLCox. 


[Letter  8.] 

AUGtJST  25,  1894. 
Gi:o.  W.  Siixcox,  Ih-uitseh: 

I  give  you  herewith  extracts  from  a  letter  that  I  have  recei'ed  from  our  minister 
of  foreign  all'airs  in  relfsrence  to  arranging  a  commercial  treaty  with  the  United  States 
of  America  and  Si)ain  whereby  we  may  be  able  to  get  your  American  agricultural 
machinery,  tools,  etc.,  into  Spain  without  paying  duties  so  heavily  imposed  on  us  at 
present. 

You  have  done  well  in  replying  that  our  main  object  In  making  new  treaties  with  the 
United  Stales  of  America  is  to  have  the  duties  reduc  d  there  on  cork  and  wine  from 
Sjiain  in  exchange  for  ailmitting  into  Spain  agri<mltural  machines,  tools,  and  im]>le- 
luents  made  in  t\u'  United  States  of  America.  Besides  this  we  must  ask  the  free 
im])ortation  of  all  new  agricultuial  ])rodui  ts,  such  as  rice,  pease,  etc.,  if  we  allow 
their  agricultural  j)roduct8  to  come  to  Sj)ain.  We  must  ask  for  two  different  trea- 
ties, one  for  Spain  and  the  other  for  the  island  of  Cuba  and  ruorto  Rico. 
Always  your  obedient  servant, 

Albkrtk  i)k  Gt  intana, 

CorrocUa  de  Montgri,  Spain. 


John  Moore's  Son  Company,  molrrs  of  agricultural  machinery,  lia.itan, 

N^.  J.  „ . 

Tlio  above  will  give  you  full  name  and  line  of  manufactures  of  this 
compiiny. 

Ciipital^  .1i'l<H),0()0;  iiveraj^e  eniployeos  about  75,  and  yearly  product 
about  $100,0(K),  neatly  equally  divided  between  export  and  domestic. 


RECIPROCITY   STATEMENTS. 


435 


Wo  sell  abroad  both  direct  and  throng!)  commission,  but  even  in  the 
trade  coming  throngh  coniniissioii  nuMcliants  we  contract  with  the 
buyers  direct  to  a  large  extent.  TIuls  the  connnission  houses  become 
shipping  and  banking  inteimcdiaries  only.  We  obtain  our  trade  by 
visiting  it. 

We  are  aware  of  no  discriminations  ngaiiist  our  line  of  goods  all'eet- 
ing  in  the  slightest  our  chances  for  business  abrciud. 

<S.  Changes  constantly  occur  in  South  American  tarills,  but  allect  all 
shippers  alike  in  our  line  of  goods. 

1).  As  a  ride,  the  tariff  in  iSouth  American  countries  on  farm  im[)le- 
ments  of  the  simpler  classes  is  light,  and  the  entire,  removal  would  i>ro- 
(luc«^  little  result.  In  Argentina  only  are  there  any  cpiantity  of  ])lows 
and  kindred  tools  made,  and  even  there  m.iinly  in  tiie  far  interior.  I'^ven 
there  the  entire  removal  of  the  dnty  would  probably  not  affect  materi- 
ally the  denuind,  though,  as  Aigentina  now^  S(^ems  able  to  i)roduce  wheat 
for  less  at  seaboaid  than  this  couutiy,  any  reduction  in  their  items  of 
producing  cost  would  hardly  seem  advantageous  to  this  country, 

J(».  About  twice. 

1 1.  Much  less. 

12.  Much  less. 

13.  From  lOnglish  and  (lermaii  makers;  in  all  the  markets;  we  reach 
Africa  and  South  America. 

11.  They  have  tiie  advantage  of  steady  and  fairly  uniform  (!ost  of 
materials.  With  them  iron  and  steel  costs  are  as  steady  as  lumber 
costs  are  with  us.  We  have  been  lower  than  1  hem  on  iron  and  steel 
costs  (in  the  fall  and  winter,  lS!)l-l)r)),  but  our  nuirket  lluctuates  widely. 
This  is  disastrous  to  competitive  business  on  staple  products  nuule 
entirely  of  metal.  Where  wood  is  the  main  component  part,  the  advan- 
tage, as  a  rule,  is  with  us.  They  have  decided  advantage  in  banking 
lacilities,  exchange,  mail  time,  etc.  Their  freight  rates  (from  seaboard) 
are  much  less;  time  in  transit,  as  a  rule,  less;  fieightiiig  opportunities 
more,  and  insurance  less. 

15.  Given  an  even  range  of  costs  for  materials  ami  the  cost  of  labor 
as  of  the  i)ast  two  years'  average,  we  can  compete  in  both  quality  ami 
pi'ice. 

l(i.  Largely  increased. 

17.  The  home  market  is  the  laigest  individual  in  the  world,  but  with 
present  facilities,  worked  steadily  the  year  through,  existing  factories 
could  probably  produ(!e  twice  the  (juantity  of  our  line  of  goods  now 
made  and  consumed  in  the  United  States.  In  other  words,  the  nuinu- 
factnrers  of  this  country  could,  without  increasing  their  facilities,  but 
sim]dy  by  running  full  the  year  rouiul,  supply  all  the  goods  now  sup 
plied  by  English  ami  German  makers  and  exporters  of  agricultural 
iinplenuints. 

IH.  Did  not  aft'ect  it  to  the  slightest  in  our  line.     Comparing  trade 
during  reciprocitj'  of  those  countries  availing  of  it  and  those  not  avail 
ing  of  it,  there  was  no  ditference  as  between  the  two  classes.    Trade 
conditions  regulated  the  demaml  from  each  class  alike. 

1!>.  We  do  not  km)w. 

Our  replies  to  17  and  18  are  based  on  actual  exjjerience — travel  in 
lOurope  and  South  America — and  a  study  of  the  factory  conditions  in 
the  producing  and  trade  conditions  in  the  i)urchasing  countries.  Vv\y 
or  none  of  the  South  Anu'rican  Republics  are  without  their  debts  (pub- 
lic); all  have  their  exjieiises,  and  tlieir  interest  and  expenses  are  mainly, 
ami  nuist  be  imunly,  covered  by  customs  receipts. 

liO.  ^'o;  because  we  do  not  believe  reciprocity  would  be  operative. 


436 


EECIPKOtlT Y    STATEM KN TS. 


The  expenses  must  be  paid  and  from  the  custom  house.  They  miftiit 
reduce  or  take  oil'  the  tarilV  in  appearance,  but  it  woukl  be  there  never- 
theless, in  ])ort  char^j^es,  laudiny'  cliari^es,  or  in  some  roundabout  way. 
"One  must  live,"  and  nations  as  well  as  individuals  must  have  some- 
thing to  live  on.  The  native  in  South  America  does  not  want  to  tliink 
lie  is  ])ayin}i'  the  taxes  any  more  than  the  average  American,  so  they 
load  the  apparent  tax  on  the  merchant,  esjjecially  on  the  large  import- 
ing houses.  A  largo  proi)or(ion  of  such  are  English  or  (Jernum.  So 
the  present  arrangement  is  doubly  satisfactory — the  masses  do  not  see 
they  are  paying  the  tax  and  they  also  think  the  hated  foreigner  is  pay- 
ing it  I'or  them.  No  Government  which  attempted  to  give  honest  force 
to  general  reciprocity  could  exist,  since  by  as  much  as  reciprocity 
increased  the  business  with  the  reciprocating  nation,  by  so  much  would 
the  customs  suffer,  and  while  the  results  might  be  beneficial,  still  the 
benefit  would  accrue  indirectly  and  the  taxes  would  have  to  1)0  direct. 
The  South  American  mind  would  be  no  quicker  to  recognize  the  true 
and  correct  balance  than  the  North  American  mind. 


The  BucJier  tO  Gihbs  Plow  Oo.,  Canton,  Ohio. 

2.  Plows  and  agricultural  implements. 

4.  We  sell  goods  in  foreign  countries — Europe,  Africa,  South  America, 
Australia,  Cuba  (before  the  war),  Jamaica,  and  Mexico. 

5.  We  make  direct  efforts  to  conduct  this  business  by  having  estab- 
lished an  office  in  New  York  City,  and  by  establishing  agencies  in  the 
various  (jountries. 

8.  Wo  commenced  this  business  within  six  or  eight  years,  and  is  not 
very  extensive. 

lb.  Wt  understand  our  foreign  customers  have  the  advantage,  be- 
«'ause  :hey  can  ship  their  goods  in  vessels  which  sail  directly  from 
I'jugland,  France,  and  Germany,  especially  to  Australia,  South  x\merica, 
and  Mexico.  The  United  States  should  establish,  protect,  and  main- 
tain a  line  of  vessels  plying  between  these  States  and  South  America, 
and  Mexico  esi)ecially.  Another  item  of  great  importance,  as  we  umler- 
stand  it,  would  be  the  establishment  of  an  international  banking  system 
between  these  States  and  those  of  the  South  American  continent. 

1 1.  Abstract  of  duties  imposed  by  the  system  in  vogue  between  the 
several  countries.  Believe  that  our  i)rices  compare  favorably  with  those 
of  foreign  manufacturers,  and  in  quality  exceed  to  a  great  extent. 

12.  The  reciprocity  treaties  of  1890  caused  a  very  largely  increased 
in(iuiry  for  goods  in  our  line,  and  since  the  repeal  of  said  law  this 
interest  lias  decreased  considerably. 

13.  We  therefore  would  be  in  favor  of  the  reestablishment  of  reci- 
procity principles  in  future  tariff  legislation,  and  the  enaclment  of  a  law 
authorizing  the  President  to  negotiate  recijtrocity  treaties  witli  the 
I'^uropean  and  American  nations  so  far  as  possible.  We  also  believe  in 
l)rotectivo-tariff  principles,  with  sufficient  force  and  power  to  collect 
revenue  for  the  general  expenses  of  the  Governmout. 


I 


Keystone  Manufacturing  Company,  Sterling,  III.  -      - 

2.  We  are  engaged  in  the  manufacture  of  farm  machinery. 

3.  The  foreign  countries  with  which  wo  do  business  are  the  Argen- 
tine liepublic,  South  America,  Canada,  and  some  portions  of  i'jurope. 


RECirROClTY   STATEMENTS. 


437 


4.  We  have  made  some  effort  to  extend  our  foreign  trade,  and  with 
considerable  success. 

5.  We  do  not  find  any  restriiitions  to  hinder  us,  particularly  in  foreijjn 
countries,  in  the  extension  of  our  trade,  with  the  exception  of  Canada. 

6.  The  Canadian  tariff  on  farm  machinery  is  exclusive,  almost  pro- 
hibitory. 

7.  I  think  if  we  could  get  reciprocity  with  Canada  on  farm  machinery 
it  wouhl  be  of  great  benelit  to  Canada  and  to  ourselves,  and  think  this 
could  be  brought  about  by  some  eti'ort  IVoni  Congress. 

8.  The  volume  of  our  business,  as  coniitared  with  that  of  six  years 
ago,  is  larger,  nearly  double,  what  it  was  then,  but  the  selling  i)rices 
are  lower  now  than  they  were  tlien  and  the  juoflts  are  not  so  good. 
(This  answers  query  9.) 

10.  We  do  not  have  any  trouble  about  foreign  competitors  in  our  line. 

11.  We  have  no  trouble  in  competing  with  foreign  merchants  in  the 
sale  of  our  goods,  either  in  quality  or  prices. 

12.  We  think  tl»at  the  recijirocity  treaties  made  in  1890  were  favor- 
able toward  extending  our  trade  in  foreign  countries,  and  that  this 
feature  should  be  again  incorporated  by  our  (Jiovernment. 

13.  We  are  heartily  in  favor  of  the  reciprocity  i)rinciple  to  future 
tariff  legislation  and  the  enactment  of  a  general  law  autiiorizing  the 
J'resident  to  negotiate  reciprocity  treaties  between  us  and  other 
nations.  There  is  no  reason  why  we  sliould  not  be  able  to  cfunpete 
with  any  nation  in  the  world  o)i  farm  machinery.  While  labor  is  lower 
in  some  foreign  countries  than  it  is  here,  yet  they  do  not  have  tlie 
ingenuity  and  the  facilities  for  manulacturing  the  goods  as  wo  do. 
IVlost  all  of  tlie  foreign  lines  of  nuichinery  are  heavy  and  very  bungly, 
and  do  not  combine  the  American  ingenuity  and  neatness  in  their 
manufacture  of  farm  machinery  as  that  manufactured  in  this  country. 


DliUGS,  MEDICINES,  (niEMK  ALS. 


CIRClJLAll  OF  INQUIIIY  TO  MANUFACTURERS. 

committei';  on  ways  and  means, 

House  of  Kepresentatives, 

Wa.shhH/to)i,  n.  C.J  March  i,  JS96. 

Str:  Tn  ordiT  tliat.  they  may  give  more  iiitollijiont  consideration  to 
])(Midin{if  and  jjioposed  lej^Lslalion,  the  subcommittee  of  the  'Jommittee 
on  Ways  and  J\Ieansoi'  the  JJouse  of  Representatives  in  char,ijeof  bills 
relating  to  reciprocity  arranjjenicnts  and  coninicrcial  treaties  would  be 
{greatly  oblij^ed  if  y<tn  woukl  forward  tliem,  at  your  earliest  conven- 
ience, your  views  and  sujifgestions,  and  snch  inCcrmation  as  you  are 
able  to  furnish  ui)on  the  following-  p'Mits,  namely: 

1.  (live  full  name  and  address  of  iirm  or  company. 

2.  Lines  of  manufacture. 

.'5.  Amount  of  capital,  number  of  persons  employed,  and  value  of 
annual  i)r<)duct. 

4.  ])o  you  find  your  market  at  home  or  abroad,  and,  if  both,  in  what 
])ro])ortion  ? 

r).  \ )o  you  sell  direct  to  foreign  dealers  or  tlirough  commission  houses? 

(5.  Have  you  made  any  direct  clfort  to  extend  your  foreign  trade; 
and  if  so,  by  what  means,  with  w^hat  success,  and  in  what  countries? 

7.  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foieign  country  that  restrict  or  prevent  the 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  means  by  which 
they  juay  be  removed? 

<S.  What  changes  have  recently  occurred  in  the  tariffs  of  foreign  conn- 
tries  so  far  as  tliey  relate  to  your  lines  of  manufacturer? 

1).  How  far  would  the  removal  or  reduction  of  the  customs  duties 
im])()sed  by  foreign  nations  u])on  the  merchandise  in  which  you  deal  aid 
in  (he  extension  of  your  exj)ort  trade? 

10.  What  is  the  output  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  How  does  the  ])resent  cost  of  production  compare  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  land  ? 

12.  How  do  present  selling  prices  compare  with  those  of  six  years 
ago? 

13.  What  competition  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  markets! 

14.  What  advantages  do  your  foreign  competitors  have  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

15.  To  what  extent  c^a  you  compete  with  foreign  manufacturers  in 
quality  and  prices  f 

438 


RECirROCITY    STATEMENTS. 


439 


5. 


f ,  1896. 

ration  to 
jmmittco 
;eot'  bills 
would  be 
;  convt'u- 
i  you  are 


value  of 

1 1,  ill  what 

»n  bouses^ 
11  trade; 
HI  tries? 
e  laws  or 
event  tbe 
by  wbicb 

eififn  coim- 

ins  duties 
u  deal  aid 

ith  tbat  of 

til  tbat  of 
tianspor- 

six  years 

ufacturers, 

over  you 
to  foreign 

aoturers  in 


i 


IG.  nas  tbe  total  product  of  tbe  United  Htates  in  your  line  of  manu- 
facture increased  or  decreased  during  the  last  six  years? 

17.  What  proportion  of  the  total  present  and  i)08sible  output  in  your 
lines  of  manufacture  in  the  United  States  can  be  absorbed  by  tlio 
domestic  market;  and  what  would  be  your  estimate  of  the  natural  sur- 
plus for  export  if  all  manufacturers  in  your  lines  were  producing  to 
their  full  capacity  1  (Tlie  purjwse  of  this  inquiry  is  to  secure  as  accurate 
an  estimate  as  possible  of  the  necessity  for  new  foreign  markets  to  the 
manufacturers  of  the  Llnited  States.) 

18.  Was  the  general  effect  of  the  reciprocity  treaties  made  in  IP'10 
favorable  or  unfavorable  to  the  ex])ort  trade  ot  the  United  States,  and 
what  was  the  effect  of  their  repeal T 

1!».  What  was  the  effect  upon  farm  j)roducts  particularly'? 

(If  your  replies  to  inquiries  17  and  IS  are  based  upon  actual  experi- 
ence, please  give  details  as  fully  as  possible.) 

20.  Do  you  favor  the  aiiplication  of  the  reciprocity  principle  to  future 
tarift"  legislation,  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  Eiiro[»ean  and 
American  nations,  so  far  as  possible? 

These  inquiries  have  been  forwarded  to  several  hundred  persons, 
firms,  and  cor|)orati<)ns  Avho  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  replies 
are  intended  for  publication  with  a  report  which  the  Committee  on 
Ways  and  Means  will  make  to  the  House  of  Eepresentatives;  but,  if 
so  desired,  any  information  received  will  be  regarded  as  conlidential. 
All  values  should  be  expressed  in  United  States  gold,  and  all  quantities 
in  our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  iu(iuiries  will  be  ai>preciated. 
I  am,  sir,  your  obedient  servant, 

A.  J.  Hopkins,  Chairman. 


REPLIES. 


Harrison  Bros.  &  Go.,  Grays  Ferry.,  Philadelphia,  Pa. 

2.  Wbite  lead,  colors,  paints,  and  chenucals. 

3.  About  $;},()00,000;  al)out4r)0;  about  $2,500,000. 

4.  Principally  at  home,  owing  to  causes  and  limitations  hereinafter 
explained,  which  virtually  bar  us  out  from  forCkgn  markets. 

5.  Generally  througb  commission  houses. 

0.  We  have  made  direct  eftbrt  by  advertising  and  the  distribution  of 
sample  cards  and  circulars  bearing  upon  our  goods,  and  by  employing 
representatives  of  our  own,  and  alio  employing  commission  agents. 
Our  success  has  been  very  small,  and  has  not,  by  any  means,  compen- 
sated for  the  outlay  expended ;  mainly  in  the  South  American  countries. 

7.  We  have  found  that  we  have  to  contend  against  a  class  of  cbeap 
goods,  made  principally  in  England  and  Germany  by  low-priced  labor. 
It  would  be  necessary  to  degrade  our  own  labor  in  order  to  meet  this 
competition.  Then  again,  owing  to  the  low  value  of  money  in  foreign 
countries,  they  offer  terms  of  credit  nuich  more  lengthy  than  we  can 
consistently  offer.  One  of  the  ]>rincipal  difficulties  in  our  obtaining 
foreign  trade  is  the  want  of  facilities  for  direct  steam  shipment  to  the 
principal  places  where  the  commerce  oi  the  various  countries  is  ceu- 


1^^" 


440 


RFX'IPROCITY    STATEMENTS 


-ft:  nil; 

mm 


if- !»« 


m 


tcrcd.  'Vho  only  way  to  remove  tliia  would  be  by  the  Governnient  of 
the  United  States  extending  to  ita  merchants  the  same  aid  which  the 
(lov^crniiicnts  of  Great  Jiritain  and  other  countries  extend  to  their  mer- 
cluints  ill  the  encouragement  of  the  commercial  marine,  by  the  means 
of  postal  or  other  subsidies.  We  believe  that  foreign  nations  are  dis- 
criminating against  the  United  States,  and  protecting  their  home  indus- 
tries by  means  of  tariffs,  which  are  largely  prohibitory,  and  meant  to 
be  80.  We  believe  that  the  only  means  of  bringing  foreign  countries 
to  adndt  our  products  on  a  suitable  basis  would  be  either  by  retaliation 
on  our  part,  which  we  do  not  recommend,  or  by  means  of  reciprocal 
treaties,  which  wo  do  recommend. 

8.  We  aie  not  in  j)osition  at  inesent  to  enter  into  details,  but  believe 
that  the  whole  tendency  on  the  part  of  foreign  countries  has  been  to 
inci'ease  rather  than  to  diminish  their  prohibitive  scale  of  duties. 

{).  Were  our  products  admitted  upon  any  reasomible  basis  to  foreign 
countries  our  business  could  be  largely  increased,  because,  in  tiie  first 
jdace,  the  drawback  law  of  the  United  States  on  raw  material  i)uts  us 
virtually  on  a  par,  so  far  as  such  material  is  concerned,  "with  other 
nations;  then,  again,  we  have  advantages  in  the  way  of  mechanical 
api)liaiices  and  mechanical  skill,  which,  other  things  being  on  a  level, 
"would  enable  us  to  successfully  meet  the  nations  of  Kuropo  upon  tlieir 
own  ground.  The  increased  business  being  thus  brought  to  our  iac- 
tories  would  enable  us  to  give  employnuMit  to  a  larger  number  of  i)eople, 
and  in  that  way  the  advantage  would  be  of  wide  (listribution. 

10.  Jt  has  remained  about  stationary  instead  of  following  its  natural 
growth  or  increase,  owing  to  our  field  of  operations  receiving  no  encour- 
agement, such  as  would  take  place  in  the  event  of  a  foreign  outlet 
existing  for  our  goods,  and  the  building  up  of  mannfactuers  in  our  line 
West  and  South,  where  we  used  to  have  a  large  demand. 

11.  The  cost  of  production  has  had  a  downward  tendency,  arising 
from  various  causes.  We  have  been  able  to  hold  Avages  up  to  about 
their  previous  figure,  being  comiiensated  by  slight  gains  in  other  direc- 
tions, including  reduced  cost  of  raw  material  and  the  lowering  of 
transportation  rates. 

12.  We  meet  such  compet  on  in  all  markets,  especially  our  own. 
The  market  of  the  United  States  is  made  by  many  foreign  manufacturers 
the  means  of  disposing  of  tlieir  surplus  stock,  thus  enabling  them  to 
keep  prices  ui)  in  their  home  markets,  while  they  flood  this  country  with 
their  excesses.  We  know  of  one  case  in  w4iich  all  the  foreign  manu- 
lacturers  are  banded  together  in  a  pool  with  the  understanding  among 
themselves  that  they  sliall  adhere  to  certain  prices  at  home,  while  the 
remainder  of  their  production  is  consigned  to  an  agent  in  this  country, 
who  sells  at  such  price  as  he  can  obtain,  and  any  loss  thus  incurred 
through  the  sales  of  such  agent  is  divided  up  in  certain  proportions 
among  the  manufacturers.  This  has  kept  down  the  particular  article 
in  which  these  manufticturers  deal  to  such  an  extent  as  to  make  its 
production  in  this  country  now  unprofitable,  if  not  almost  impossible. 
Then,  again,  the  present  tariff  of  the  United  States  is  so  adjusted  as  to 
give  the  foreigner  undue  advantage  by  the  abuse  of  ad  valorem  rates. 
The  American  manufacturer  is  left  virtually  helpless— tied  hand  and 
foot — so  far  as  entry  goes  into  foreign  markets,  while  every  facility 
seems  to  be  given  and  the  gates  opened  wide  to  the  entry  of  the  foreign 
manufacturer  here. 

14.  They  have  the  advantage,  if  advantage  it  can  be  called,  of  cheap 
labor.  Thoy  have  the  advantage  of  the  protecting  arm  of  their  govern- 
ments, who  see  to  it  as  far  as  possible  that  their  commerce  is  unfettered 


r 


ncnt  of 
ich  the 
nil'  mer- 
meaiis 
avo  (lis- 
B  indns- 
eant  to 
)UiitiieH 
aliation 
Liiprociil 

,  liolievo 

1)0011  to 

es. 

I  foreig^n 

the  first 

puts  us 
th  other 
chanical 
I  a  level, 
)on  their 

our  iac- 
if  people, 

8  natural 

0  cucour- 
;u  outlet 

1  our  line 

',  arising 

to  about 

icr  direc- 

reriug  of 

our  own. 
ifacturers 

them  to 
utry  with 
^n  niauu- 
iiti'  anioug 
while  the 
s  country, 

incurred 
•oportions 
ar  article 

make  its 
uipossible. 
LSted  as  to 
rem  rates, 
hand  and 
ry  facility 
;he  foreign 

a,  of  cheap 
Bir  govern - 
unfettered 


RECIPROflTY    STATI'.MKNTS. 


441 


and  aflbrded  every  possibility  for  cx|»aiision.     7\s  (or  (ransjjoitation 
iulvanta};es,  they  hav<'  tlicni  in  llie  shape  of  lines  of  stcaniships  run- 
ning to  every  part  of  tlie  world  and  en;il)Ied   so  to  run   by  means  ot 
(lovernmeut  ai<l,  extended  in  one  manner  or  another. 
10.  We  can  outdistance  them  all  in  point  of  quality,  and  can  out- 


disti 


th 


ah 


th 


•f 


\]  Held,  if 


ance 

enabled  by  running  to  full  cajiacity  and  having  markets  for  our  suiphis 
to  lower  the  cost  of  production. 

10.  Tt  has  increased  jtresumably  to  the  extent  of  incieased  home 
])roductioTi  owing  to  the  growth  of  our  country  and  its  jtopnlation. 

17.  The  present  output  can  be  absorbed,  and  is  al)sorbed  by  the 
douu'stic  market,  because  the  limits  of  that  nnirket  being  known  the 
output  is  limited  accordingly.  Were  we  to  woik  to  our  fid!  capaeity 
we  could  i)roduce  a  surplus  for  export,  nnd  not  oidy  would  our  surplus 
be  available  for  such  purpose,  but  we  could  inciease  our  capacity  to  any 
extent  that  new  markets  gave  a  field  for.  At  present  we  are  limited  ov 
curtailed,  but  if  we  had  the  opportunity  for  v^xpansion  we  would  (piickly 
res])ond  to  such  opportunity. 

18.  The  general  elletit  was  undoubtedly  favorable,  and  their  repeal 
undoubtedly  unfavorable. 

11>.  Without  professing  any  direct  knowledge  upon  the  subject  of 
fiu-m  products  in  jiarlicular  it  seems  obvious  to  us  that  maTuifactures 
being  curtailed,  and  employment  hence  curtailed,  tlu^  home  ccuulition 
of  the  farmer  nnist  have  naturally  been  impaired  accordingly,  and  it 
would  seenj  to  be  obvious  that  the  reverse  conditions  w^ould  lu)ld  good 
in  the  event  of  manufacturiug  here  being  expanded  and  the  earning 
])ower  of  labor  thus  increased.  It  would  also  appear  that  were  the 
]>rice  of  farm  i)rodu<'ts  upheld  at  home  it  would  tend  to  a  corresponding 
ui)h(dding  of  such  farm  jtroducts  as  are  ex])orted. 

20.  We  most  certainly  do,  and  for  the  reasons  heretofore  briefly 
sketched  in  this  paper,  but  we  would  be  perfectly  content  if  we  were  at 
least  allowed  to  hold  (mr  own  nuuket  by  the  aid  of  reasonable  ])r(>tec- 
tiou  through  the  enactment  of  an  equitable  tariff  based  ui)on  si>c('iM(! 
duties. 


(lilman  Tiros.,  Uosion. 

So  far  as  a  general  policy  is  concerned  we  are  under  the  impression 
that  reciprocity  with  other  countries — ])articularly  the  Houth  Ameri- 
can— would  prove  advantageous  to  the  business  interests  of  the  United 
States. 


J.  C.  Aycr  Company,  Lowell,  Mass.  ,:. 

2.  Manufacturers  of  proprietary  medicines  and  perfumery;  printers 
and  publishers. 

3.  Amount  of  capital,  $300,000;  number  of  persons  employed,  225; 
value  of  annual  product,  $1,250,000. 

4.  Market  both  at  home  and  abroad.    Home  market  75  per  cent,  for- 
eign market  25  per  cent;  but  the  foreign  market  increasing. 

5.  The  greater  part  of  our  export  trade  is  done  directly  with  foreign 
dealers,  but  some  part  through  American  commissiou  houses. 

0.  We  have  been  engaged  for  many  years  in  efforts  to  extend  our 
foreign  trade  by  means  of  travelers,  distribution  of  our  own  printed 


I 


442 


EECIPliOClTY    STATEMENTS. 


matter,  ai3i<l  by  advertising  through  tlie  ncwspapora  originating  in  the 
foreign  countries  with  which  wo  trade — these  being  in  all  the  four 
quarters  of  the  globe. 

7.  The  chief  obstacles  to  I  he  larger  development  of  our  trade  in  for- 
eign countries  is  found  in  high  tarifts.  We  know  of  no  better  way  of 
remo\  ^  or  reducing  such  hostile  tariffs  than  by  means  of  reciprocity 
treaties. 

8.  New  Zealand  last  year  advanced  her  tariff  on  our  goods  from  25 
per  cent  ad  v.aloreni  to  40  per  cent,  which,  we  apprehend,  will  re<luce 
our  trade  there.  The  tendency  of  late  years,  especially  in  the  Latui- 
American  countries,  has  been  toward  higher  tariffs.  In  Brazil  a  new 
tariff  went  into  olfect  in  January  of  this  year,  which  increases  enor- 
mously the  duti;'s  on  our  goods,  besides  numy  other  Auierican  manu- 
factures. Owing  to  the  ambiguous  phrasing  of  the  new  tariff  our  resi- 
dent agents  at  Kio  are  not  yet  able  to  advise  us  of  the  exact  rates  of 
increase,  but  wc  are  afraid  tiiatwe  must  either  rolincpiish  the  Brazilian 
market  or  manufacture  entirely  at  l*io.  If  we  have  to  do  this,  so  much 
less  employment  and  wages  will  be  forthcoming  here  for  American  labor. 

y.  The  removal  of  customs  duties  by  foreign  nations  would  in  a  very 
short  tiuu'  double  (.ur  exports.  Reduction  of  duties  would  ter.d  to  pro- 
mote larger  trade  in  proportion  to  the  lessening  of  the  burden  imposed 
by  the  higli  duties. 

10.  Our  domestic  output  shows  no  increase  to-day  over  that  of  six 
years  ago^  but  our  exporcs  to  foieign  countries  show  an  increase  of  more 
than  25  per  aent. 

11.  The  present  ct)st  of  production  is  about  the  vsame  as  six  years 
ago,  including  wages;  transportation  rates  by  sea  and  land  are  slightly 
less. 

12.  Our  Si  lling  prices  to-day  are  the  same  as  those  of  six  years  ago. 

13.  We  meet  with  very  sharp  c(uppetition  in  nuirkets  abroad,  chiefly 
from  l<]uropcan  manufacturers,  but  also  in  many  countries  from  the 
native  manufactuieis  ami  dealers. 

11.  Our  competitors  abroad  in  numy  markets  have  advantages  in  the 
lower  viost  of  Kuro])ean  labor  and  lower  cost  of  materials.  Transporta- 
tion cost  has  of  late  years  been  reduced. 

15.  In  (piality  our  standard  is  the  highest.  As  regards  prices,  we 
come  il!^o  competition  with  a  larj^e  army  of  foreign  products  of  like 
character  to  our  own,  but  put  upon  the  cheapest  basis. 

10.  The  total  ])roduct  oftlu^  I'^nited  States  in  such  goods  as  ours  has 
largely  increased  during  the  last  six  years. 

17.  It  is  not  possible  to  estimate  accurately  what  proportion  of  the 
total  i>resent  and  possible  outi)ut  in  the  United  States  can  bo  absorbed 
by  the  domestic  nuirket.  but  our  observation  leads  us  to  believe  that 
were  it  not  for  the  outlet  given  by  exportation  to  foreign  countries  the 
comi)etition  for  the  Unite(l  States  market  would  be  disastrously  felt  by 
manufacturers.  The  surjdus  for  export  is  limited  only  by  the  expcu't 
denuiud;  that  is,  as  the  denuind  iiu'reases  facilities  for  supplying  sanui 
expand  in  proportion.  The  foreign  demaiul  is  largely  affected  by  the 
high  selling  prices  in  foreign  markets  of  Auierican  goods,  these  high 
prices  being  largely  caused  by  the  high  duties  which  have  been  added 
to  the  l)uyingco;4.  If  cost  to  the  loreigu  consumer  could  be  reduced  the 
damand  would  be  iuci eased. 

18.  We  believe  that  the  general  eflV^ctof  the  recijirocity  treaties  made 
in  ISOO  was  favorable  to  tlie  export  trade  of  the  United  States  with 
the  countries  eoucerned.  Our  particular  goods  benefite<l  only  from  the 
treaties  negotiated  with  Cuba,  Puerto  Rico,  British  Guiana,  and  the 


^  m 


RECIPROCITY    STATEMENTS. 


443 


ago. 


we 


ii's  has 

of  tlie 
Koibcd 
^  that 
|(\S  tlio 
I'l'lt  by 
jxport 
Hjimo 
|)y  i\n\ 

lidded 
Hi  the 

linado 

with 

^11  tlio 

the 


British  West  Indies.  Witli  these  last  named  countries  we  have  not  as 
yet  perceived  any  dotiinient  from  the  abandoning  of  the  treaties,  but 
with  (/uba  tliere  has  been  a  very  hirge  fallinp:  ott'  in  trade.  This  is 
probably  caused  by  the  unfortunate  po]iti(>al  condition  of  the  country 
thiai/ast  year  or  so,  wliich  makes  a  comi)ariaon  worthless. 

20.  Westronj?ly  favor  the  application  of  the  reciprocity  princi])le  to 
the  Latin-American  nsitions  and  to  the  Britisli  colonics,  esjjecially  in 
these  latter,  with  Canada,  Australia,  New  Zealand,  and  South  Africa. 
The  duties  levied  by  the  Britisli  colonies  are  not  excessively  hij"!!, 
exce])tin«;-  in  the  cases  of  Canada  and  New  Zealand.  The  benefit  to  be 
derived  fiom  reduction  of  duties  in  these  colonies  would  be  found  in 
reduced  cost  to  the  public,  perniittiuf'of  larger  consumption.  We  have 
most  cans<^  of  c(mii)laint  agiiinst  Brazil  and  the  Spanish-American 
Itepublics  in  gcner.al,  whose  tariffs  are  excessive  in  the  extreme.  Beci- 
])rocity  treaties  .afford  the  most  effective  way  of  relief  from  tliese  bur- 
dens. American  proprietary  medicines  and  ])crfumery  come  into 
sharper  competition  abroad  with  foreign  products  than  do  any  other 
single  class  of  American  manufactures.  There  arcno  articles  of  Amer- 
ican manufacture  Avhicli  arc^  nu)re  wiilely  distributed  the;  world  over  or 
that  are  "])ushed"  with  more  intelligence  and  business  enterprise,  nnd 
there  are  no  articles  of  American  man.ufiicture  that  would  respond 
more  (|uickly  to  the  encouragement  and  relief  of  lessened  taxation  in 
foreign  custom  houses. 


J.  J.  Allen^s  A%M.s,  PlnldtlclpJiia,  Pa. 

On  the  item  of  phos[)horus  the  reci])rocity  treaty  made  a  difference 
of  2A  i)er  ciMd,  in  favor  of  this  country  ovei'  J'jurope  for  Cuba,  and  this 
difference  in  the  rate  of  duty,  together  with  the  feeling  which  it  appar- 
ently created  in  favor  of  our  country,  enabled  the  American  manufac- 
turers to  supi»ly  nearly  all  of  the  phosi)horus  used  in  Cuba,  which  they 
were  net  able  to  do  before  the  reciiu'ocity  act  went  into  eflect. 

A  reci])r()city  agreement  with  the  sanu;  difference  as  above  woidd 
undoubtedly  very  materially  assist  in  enabling  the  American  manu- 
facturers to  sui)])ly  all  the  (;ountries  of  South  Americii,  as  they  seem 
favorable  to  buying  of  us,  and  are  ordei'ing  in  small  sample  lots,  and 
they  say  they  would  buy  more  if  the  tariil"  rates  were  not  against  us. 


Pronia  Cura  C(Wipnny,  Meritlen,  Conn. 

As  our  busiiu^ss  was  only  started  in  1893,  and  is  necessarily  small, 
we  (^an  not  say  much  concerning  reciprocity,  especially  as  on  accouni  of 
the  financial  condition  of  our  country  wehacl  to  proficed  \-ery  cautiously 
and  could  not  push  our  foreign  trade.  We  will,  however,  endeavor  to 
answer  some  of  your  questions  to  the  best  of  our  ability. 

1.  Pronta  Cura  Company,  Merideu,  Coun. 

2.  Ointments. 

5.  Sell  direct  to  foreign  dealers. 

C.  Have  nuule  direct  efforts  to  get  access  to  the  market  in  Cuba  by 
writing  directly  to  dealers.     JJesult:  liepresentation  there. 
\).  Keduction  in  customs  duties  would  greatly  help  us. 
20.  Yes. 


.i 


444 


RECIPROCITY    STATKMENT)*. 


Andrew  Jergens  d'  Co.,  Cincivnati,  Ohio. 

2.  MainifactiirtM\s  of  toilet  soaps. 

3.  Australia,  Mexico,  Cuba,  aud  Canada. 

L  Have  made  several  arrangements  costinj^  ns  several  thousand 
dollars  for  South  American  trade,  but  lind  foreign  s()a]>s  in  all  tlie  mar- 
kets of  South  America  well  introduced ;  but  think  it  ])ossible  to  get  our 
share  by  being  placed  on  an  even  footing  with  favorable  freight  rates. 

5.  Ko. 

G.  Are  not  aware  of  change  except  Cuba. 

7.  Manufacturers  in  our  line  are  able  to  cope  when  placed  on  an  even 
basis  with  those  of  foreign  nuike,  providing  we  can  get  better  shipi)ing 
facilities. 

8.  Volume  of  business  compared  with  six  years  ago  shows  an  increase 
of  200  ])er  cent. 

!).  Prices  compared  show  a  decline  of  20  to  35  per  cent. 

10.  The  advantages  of  regular  lines  of  vessels  and  steamers  making 
regular  trii)S  to  all  important  points.    Also  advantage  of  cheap  labor. 

11.  On  an  even  basis. 

12.  Jirought  us  in(!reased  trade,  especially  with  Cuba,  but  ui)on  ])as- 
sage  of  Wilson  bill  every  order  was  canceled,  and  at  present  high  duties 
are  unable  to  sell  or  compete  with  foreign  soaps.  All  orders  were  can- 
celed, and  have  not  received  a  single  order  since  from  Cuba. 

We  have  only  one  suggestion  to  nuike  in  addition  to  a  return  of 
reci])rocity  treaties,  and  that  is  more  encouragement  to  subsidies  of 
shipping  lines  of  steamers. 


Jerome  MfirhJc  <(';  Co.,  Jio.iion,  Mnsn. 

We  are  in  receipt  of  your  circular  letter  of  March  4,  1800,  asking 
certain  information  and  our  views  and  suggestions  in  regard  to  reci- 
procity and  (iommercial  treaties.  We  can  give  yim  very  litth^  detailed 
information,  as  we  are  merchants  and  not  mainilacturers.  We  are 
very  glad  indeed,  however,  to  give  you  Avhat  little  information  there  is 
within  our  knowledge  on  the  subjects  referred  to.  Our  capital  is  from 
$300,000  to  $500,000,  Our  business  is  ahuost  wholly  the  handling  of 
domestic  goods  and  the  inqiortation  of  heavy  chemicals.  The  only 
])roduct  we  have  exported  in  any  quantity  is  cornstarch,  which  we 
iiave  sent  only  to  the  English  nmrket.  This  starch  we  have  sold  to 
i'oreign  dealers  direct.  We  have  made  no  effort  to  send  cornstarch  to 
any  other  nuirket  tiian  Great  Britain,  and  we  know  of  no  obstacles  in 
the  laws  or  customs  regulations  of  any  foreign  countiy  that  would 
restrict  or  i)revent  our  shi])ment  of  starch  to  other  countries,  but  have 
made  lu)  eli'ort  to  ship  starch  to  other  countiies,  as  we  have  not  found 
adenumd  for  the  commodity  in  any  other  country  than  Great  Britain. 
We  have  not,  however,  fully  investigated  the  possibility  of  advanta- 
geous shipment  of  starch  to  other  countries  than  Great  Britain.  Jn 
the  shipment  of  starch  to  Great  Britain  we  have  found  r,  decided  dis- 
position on  the  part  of  the  customs  to  avail  themselves  of  the  slightest 
l)os8iblo  deviation  from  the  technical  regulations  of  the  customs  in 
regard  to  the  marking  of  goods,  etc.,  to  impose  flues  and  penalties, 
although  it  was  evident  that  the  failure  to  comply  with  the  regulations 
in  regard  to  the  matter  was  the  result  of  lack  of  knowledge  and  acci- 
dent or  mistake.    lu  other  words,  a  little  disposition  on  the  part  of  the 


J' 


RECIPROCITY    STATEMENTS. 


445 


customs  to  discourage  imports  into  Great  Britain  of  foreign  goods. 
The  price  of  starch  to-day,  and  the  cost  of  its  ]>r(>duction,  is  much  less 
than  se\eral  years  ago,  owing,  however,  principally  to  the  low  cost  of 
the  raw  material  at  this  time.  Ocean  freight  rates  vary  very  much 
froju  time  to  time;  just  now  they  are  very  low  from  the  port  of  J3oston 
to  Great  Britain. 

We  very  strongly  favor  the  application  of  the  reciprocity  principle 
to  future  tarilf  legislation,  and  the  enactment  of  a  general  law  author- 
izing the  President  to  negotiate  reciprocity  treaties  with  b(»th  I"]uropeau 
and  American  nations,  as  far  as  possible.  We  are  also  very  strongly 
in  favor  of  legislation  tlnu  will  very  materially  extend  our  foreign 
trade,  even  to  tlie  extent  of  subsidizing,  if  necessary,  steamshii)  lines. 
We  believe  the  United  States  shouhl  do,  as  far  as  possible,  its  own 
passenger  and  freight  carrying  business. 


Longman  &  Martinez,  Ncic  TorTc, 

Our  business  is  manufacturing  paints  and  vartiishes. 

Trade  with  Cuba.  Puerto  llico,  South  America,  and  Mexico. 

Have  made  direct  eifort  to  extend  our  foreign  business  during  the 
past  thirty  years. 

The  volume  of  <mr  business  in  comparison  with  that  of  spring  of  189o 
and  before  is  over  one-quarter  to  one-third  less. 

Our  selling  price  to  day,  in  comparison,  is  a  less  price. 

In  paints  t»ui'  foreign  competitors  have  an  advantage  over  us,  due,  wo 
believe,  to  cheaper  labor  and  to  better  advantages  whicii  they  possess 
in  the  way  of  transportation. 

Our  competition  with  foreign  merchants  is  therefore  dilFicult,  but  if 
we  are  content  with  none  or  a  very  small  prolit,  we  obtain  a  share  of 
l)usiness. 

The  effect  of  the  reciprocity  treaty  made  in  1890  was  favorable  to  our 
export  trade;  the  repeal  diminished  our  busiiuiss. 

VVe  favor  the  aiiplication  of  the  reciprocity  principle  to  future  tariff 
legislation,  and  the  enactment  of  such  a  law  as  you  mention  provided 
the  reciprocity  prim-iple  is  extended  only  to  products  of  other  countries 
which  can  not  be  grown  or  manufactured  in  this  country. 


)fthe 


Bender  &  Alldred,  PUtshurij,  Pa, 

2.  Lithargi    ind  red  lead. 

3.  Fifty  tho  sand  dollars;  twenty;  $142,000. 

4.  At  home. 

5.  Do  not  sell. 

0.  Yes;  by  remitting  tarilV  on  foreign  pig  lead;  Canada. 

10.  We  are  new  and  can  not  make  com[>arisou,as  have  been  running 
eight  years;  first  yeai's  very  small. 

11.  Possildy  higher;  raw  nmtcrial  lower. 

12.  Nearly  1  cent  i)er  jtound  lower. 

l.'J.  In  our  home  market,  English,  and  German. 

14.  vVdv.mtagc  of  ciieaper  labor. 

17.  About  one  half;  the  other  half, 

1J>.  In  our  line  lower. 

20.  We  do. 


•i.Ji 


446  RECIPROCITY    STATEMENTS. 

Heath  tO  MiUujan  Mnmifacturing  Compaujj,  GIiUukjo,  III. 

2.  I'aiiil  and  color  iiuikers. 

3.  Wc  do  not  deal  direct  with  any  foreign  countrie.s  to  any  extent. 

4.  We  have  made  one  ellort  only  to  extend  our  trachis  into  foreii>ii 
paits,  wliich  was  toeslabhsh  an  agency  in  .Japan,  but  were  not  sne- 
(ressful.  Incidentally,  wonhl  say  oiir  home  market  is  the  best  for  our 
lino;  in  fact,  America  consumes  more  paint  than  all  the  rest  of  the 
world. 

r>.  The  high  tarilf  of  Canada  and  tlui  high  and  irregular  tarilf  of 
JMexico  prevents  our  selling  jiaints  in  tlu^  two  countries,  which  would 
otherwise  be  the  most  lavoral)le  to  our  ]>ro(Iuct. 

0.  No  changes  in  (he  tariff  have  recently  bccii  made  which  seriously 
affect  the  sale  of  ])aints  of  our  own  special  manufacture  in  f<u-eign 
countries  that  we  are  awaie  of. 

7.  A  reduction  of  customs  duties  in  Canadian  provinces  would 
(\s])ccially  aid  us  in  selling  our  product  in  that  section.  There  is  so 
little  (hMuaiid  for  paint  in  olher  countries  that  we  have  paid  very  little 
attention  to  the  conditions  elsewheie. 

8.  The  volume  of  our  business  is  not  as  great  aa  it  was  six  years  ago. 
It  has  decreased  materially  since  180.'». 

*.>.  Present  selling  ])rices  are  aboul  (he  sanui  as  those  of  six  years  ago. 

10.  Foreign  comi)etitors  have  the  advantage  of  us  in  the  cost  of  labor 
only,  so  far  as  wo  are  able  to. judge. 

11.  In  most  products  in  our  line  we  can  fairly  compete  with  foreign 
nuinnlacturers  in  <|uality,  but  not  in  pri(;o,  owing  to  the  greatly  ad- 
vanced <M)st  of  labor  in  this  country  over  that  of  most  other  countries, 
and  labor  is  tho  piincipal  cost  of  our  })roduc(ion. 

12.  Our  ])ersoiuil  experience  will  not  warrant  us  in  expressing  an 
opinion  on  this  question,  but  from  infoiination  at  hind  wo  sliould, judge 
that  the  recii»rocity  treaties  of  181)0  were  most  favorable  to  our  exjtort 
trade  generally. 

13.  We  do  favor  the  api)lication  of  tlu^  reciprocity  princii)le  to  future 
tariff"  legislation  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reci[)rocity  treaties  so  far  as  practicable. 

To  sum  up:  Wo  are  in  favor  of  re<i|)roi'ity  that  is  really  recii)rocity, 
based  on  good  Judgment  and  common  sense;  (hat  will  go  hand  in  hand 
with  an  amount  of  tarilf  sufficient  to  proteiit  Anu'rican  industries  and 
American  labor,  and  furnish  adeiiuate  revenue  to  meet  the  expenses 
incurred  in  uuiintaining  our  Government. 


R.  K.  Mulford  Cowptnti/,  rhiladcljjhia,  Pa. 

2.  Miin u facta lers of  phaiinaceutical  products,  i)rincipally  compressed 
tablets,  triturates,  lo/enges,  and  h.vpoclermics. 

3.  (a)  $ir»0,000.    (b)  lOo  employees,  including  salesmen,     (c)  |2oO,0(.l). 

4.  (a)  At  home,     [h)  Sonu^  little  abroad. 

5.  Both  direct  to  foreign  dealers,  also  commission  houses. 

0.  (a)  Yes,  mnwo,  little,    (b)  By  means  of  advertising,    (c)  With  partial 
succt'ss;  principally  in  the  Latin- American  countries. 

7.  V'es.     Customs  duties.     Beeiprocity. 

8.  The  writer  is  not  sufliciently  familiar  with  the  changes  in  the  tariff 
laws  in  the  foreign  countries  to  speak  intelligently  on  the  subji^ct. 

0.   It  would  give  us  an  eiiual  opportunity  witli  l<]uroj»ean  nuirkets, 
more  particularly  in  our  trade  with  the  Laf  in  American  countries,  with 


RECIPROCITY    STATEMENTS. 


447 


wlioiii,  wc  believe,  a  hirfve  and  s.itislactory  hnsiness  could  be  e.stablislied. 
Tlie  duty  on  our  prodiK'is  isnlniost  |»roliil»itoiy  in  coinjx'tiii;;' witli  l']iiro- 
l»ean  countries  lor  the  tnide,  lor  tiie  reason  that  most  of  our  (inereheiu- 
icals,  used  in  inanutiU'ture  of  our  products,  are  i)rodu<'ts  of  tlie  European 
laboratoi'ic<,  upon  \vhich  tiiere  is  a  duty,  putting;'  us  at  a  disadvantaj;(* 
wlien  endeavoring-  to  create  a  niari<et  beyond  our  own  for  our  produ(;lH 
Avhereu])on  a  duty  has  to  be  paid,  since  tliese  10uroi)ean  countries  do  not 
have  to  pay  as  much  for  the  original  article  on  siccount  of  the  duty 
rtlr(!ady  mentioned. 

10.  VV'e  are  unable  to  {^ive  an  answer,  since  less  than  six  years  ago 
our  company  was  organized. 

11.  There  has  been  a  decline  in  the  cost  of  most  all  chemical  prod- 
Ui'ts;  no  decline  in  wages;  cost  of  law  material  is  less;  trans[)orta- 
tioii  charges  by  land  and  sea  are  in  some  instances  h^ss. 

12.  Our  selling  price  compared  with  live  years  ago  is  on  an  average 
of  oO  per  cent  less. 

13.  We  have  practically  !io  competition  fiom  foreign  manufa<'.turers 
in  our  own  country,  but  they  hold  the  trade  for  our  class  of  products 
in  the  Latin-American  countries. 

It.  hiUro])ean  countries  ])ossess  the  advantage  of  securing  many  of 
the  chemical  ])roducts  used  largely  in  the  manufa(;tureof  our  line,  upon 
which  they  <lo  not  have  to  pay  duty.  As  an  oH'set  to  this  we  have 
8i)ecial  machinery  greatly  superior  to  that  which  is  used  in  the  foreign 
countries  I'or  ])rodu<'ing  ]>rodiu'ts  in  our  line.  Our  rat<' of  wages  is  very 
much  in  excess  of  their  own,  on  an  average  of  100  to  200  per  cent  above 
tiiat  i)aid  by  themselves. 

15.  Were  reciprocity  generally  extended  with  the  Ijatin-American 
countries  it  is  our  belief  that  we  would  be  able  to  successfully  compete 
with  foi'eign  manufacturers  in  our  line  and  to  eventually  control  the 
entire  niar];et  for  ]diarniaceutical  products.  It  is  questionable  to  what 
extent  inroads  could  be  made  in  supplying  the  b^uropean  niarkei. 

IG.  Our  line  has  largely  increased  during  the  last  five  years,  which 
is  due  almost  entirely  to  tlui  fVct  of  its  being  a  new  and  [)opular  one. 

17.  It  is  i)roblematical  as  to  how  mucli  of  our  [»ossil)le  |)roduct  would 
be  consumed  in  the  United  States  by  the  domestic  jnaiket. 

IS.  The  recijM'ocity  treaties  made  in  ISOO  were  unquestionably  favor- 
ably to  the  exi»ort  trade  of  the  United  .States,  and  the  repeal  was  a 
serious  blow  to  manufacturing  interests  so  far  as  their  further  securing 
foreign  business. 

10,  Any  laws  hostile  to  the  manufacturing  interests  are  unquestion- 
ably rellected  to  that  of  all  trades  and  farming  i)roducts. 

20.  We  favor  the  ai)pli('ation  of  the  recii)ro('ity  ])rinciple  to  future 
tariff  regulations,  more  i)articularly  to  the  Latin-American  countries. 
This  is  a  market  which  we  believe  legitimately  belongs  to  the  United 
States.     The  nn'iprocity  princii)le  should  be  ;ip]>li('(l  in  its  freest  senses 

As  a  manufacturer,  but  more  particulaily  as  a  citi/en  of  the  I'nited 
States,  the  writer  is  deeply  interested  in  seeing  closer  relationship 
existing  between  the  American  countries,  believing  it  to  be  for  the  best 
interests  of  us  all. 


'" 


■^1 


1:^ 


Scdlniry  i{-  Johnson,  maiinfacturing  pharmacists  and  chemists,  New  York. 

2.  ( )nr  products  represent  legitiinate  pharmacop(eial,  medicinal,  surg- 
ical, and  antiseptic  materials. 

3.  We  are  in  active  communication  in  a  business  way,  direct  and 
through  our  agents  in  London  and  Ilauduns^,  witUall  civili/(,Kl,  natit'Ufj, 


I 


448 


RECIPROCITY    STATEMENTS, 


4.  For  nearly  twenty  years  we  Lave  devised  ways  and  means  for 
Heeuriii};'  roreign  business,  and  liavo  noAv  a  status  in  Europe,  nortiiern 
Africa,  China  and  rlai)an,  Australia,  East  and  West  Indies,  and  Soutli 
America;  but  it  would  be  manifestly  unfair  for  me  to  answer  this<iues- 
tion  in  detail,  for  the  reason  that  it  has  cost  us  more  than  a  quarter  of 
a  million  dollars  to  ac(iuire  tliis  trade;  that  is  a  part  of  the  capital  in 
our  business — brains — and  we  do  not  propose  to  write  presciiptions  for 
other  numufacturers;  let  them  buy  their  exjieiience  by  intelligent  intro- 
s])ection  and  study  and  risk  of  capital.  We  are  not  in  business  for 
health  alone. 

f),  0.  As  you  know  very  well  that  for  their  own  protection  numy  of 
the  European  countries  have  adoi)ted  a  protective  system,  more  or  less 
discriminating,  by  api)roving  of  our  policy.  The  French  law  is  abso- 
lutely proscriptive  in  our  line  of  goods.  Jt  was  only  recently  that  the 
French  Aca<lemy  of  JMedicine  have  by  special  enactment  allowed  lines 
of  our  products  to  enter  into  their  poits  upon  the  ground  that  French- 
men have  not  as  yet  been  able  to  produce  similar  goods  in  our  branch 
t)r  pharmaceutical  chemistry.  The  Uussians  are  also  proscriptive  pro- 
tectionists. Eeciprocity  with  these  countries  is  the  only  remedy  upon 
an  equitable  basis  of  exchanges.  In  a  great  many  foreign  countries 
medicinal  articles  are  usually  submitted  to  an  academy  of  medicine  aiul 
pharmacy.  They  must  indorse  such  medicinal  preparation  before  their 
Ciovernments  will  permit  them  to  enter  into  the  custom-house. 

7.  About  a  quarter  of  a  million. 

8.  Domestic  trade  has  been  reduced  in  volume  on  the  ground  that 
the  Congress  contains  too  many  legislators  who  are  inexperienced  in 
commercial,  financial,  and  practical  questions.  If  75  per  cent  of  our 
legislators  were  practical  men  we  never  would  have  been  precii)itated 
into  the  misfortunes  of  the  past  few  years;  wo  all  have  suffered,  directly 
and  indirectly. 

Our  people  are  economizing,  and,  so  far  as  commerce  is  concerned, 
instead  of  buying  a  three  months'  stock  they  are  buying  goods  from 
"hand  to  mouth,"'  to  use  a  commercial  exi)ression.  With  the  return  of 
the  methods,  ways  and  means,  and  ])rinciples  of  the  Republican  party, 
I  know  (for  T  am  not  a  "doubting  Thomas")  that  trade  will  everywhere 
revive,  and  there  will  be  a  general  restoration  of  conddence  in  our 
uatioiuil  affairs. 

0.  The  selling  prices  of  goods  at  the  presei;':  time,  in  -y  Judgment, 
have  reached  tlieir  nunimum.  Competition  has  been  so  intense  for 
home  trade  that  a  great  many  numufaeturers  conducting  extensive 
establishments  throughout  the  entire  country,  when  re(iuested  to  recite 
their  views  on  the  situation,  str,  '^ed  that  they  were  doing  a  fair  business, 
but,  in  the  language  of  the  poet,  so  far  as  profits  were  concerned,  they 
could  with  the  aid  of  a  microscope  see  as  a  result  of  a  year's  business 
"an  elegant  portion  of  fried  snowballs."  With  the  gen«;ral  resuscita- 
tion of  trade  and  commerce  at  honu%  and  a  reeuactment  of  the  M(;Kin- 
ley  bill,  slightly  modified,  the  i)rosperity  belt  will  once  nn)re  be  seen  in 
the  dim  distance.  Values  of  home  products  at  the  present  time  are 
extremely  h)w. 

10.  Cheap  labor  and  long  hours;  in  some  countries  even  Sundays  are 
included.  Traiisi)ortation  charges  are  generally  lower  on  the  other 
side,  on  acc(mnt  of  the  runs  being  so  n  ueli  shorter. 

11.  We  can  compete  with  foreign  manufacturers  in  our  line  on  almost 
e(jual  terms,  on  account  of  ingenious  ma<!hinery  and  new  processes,  ])ro- 
vided  they  will  make  the  same  (juality  of  goods.  AVhen  the  (lernnm 
commissioner  was  asked  in  J87(i  how  (ierman  manufactures  compared 


ii 


RECIPROCITY    STATEMENTS. 


449 


,IU('Ilt, 

ISO  for 

I'll  si  vo 

recite 

isiness, 

<1.  tliey 


almost 
is,  i)ro- 
ci'iuan 
il)aie(l 


with  American  goods,  he  assured  them  that  in  contrast  they  were  cUissed 
among  those  that  were  "cheap  and  nasty." 

The  goods  which  we  manufacture  are  employed  chiefly  by  professional 
men,  and  they  want  the  best,  and  we  make  them. 

12.  Reciprocity  treaties  undoubtedly  lead  to  close  relations  with  those 
to  whom  we  enter  into  treaties,  but  after  all  we  have  been  for  years 
embarrassed  by  not  being  in  possession  of  a  merchant  marine  service, 
and  until  the  latter  is  encouraged  by  our  people  upon  the  basis  of  a 
,<»ratuity  of  some  sort — term  it  a  subsidy,  if  you  like — we  will  never  be 
able  to  accomplish  the  objects  involved  in  reciprocity. 

Tlie  American  ship  carrying  goods  from  New  York  or  from  any  port 
in  the  United  States  to  any  foreign  country  (;an  be  regarded  almost  as 
I  would  regard  a  salesman  that  is  traveling  tiiroughout  the  country  or 
Avorld  in  our  interest.  Jointly  with  a  marine  service  we  als(j  must 
establish  national  banking  facilities — they  are  collateral  necessities. 

l;}.  "And  don't  you  forget!"  it,  we  must  make  nnirkets  for  our  sur- 
plus products.  Naturally,  importers  and  traders  who  are  not  in*^erested 
in  the  prosperity  of  this  country  will  have  no  sympathy  with  this 
(piestion,  and  preach  Cobden  Club  sermoTis  for  the  benefit  of  English 
interests. 

"Josh  Billings"  used  to  say  on  general  principles  that  he  did  not 
care  to  give  i)eople  advice  unless  it  was  solicited ;  1  see  you  wind  up  your 
circular  with  a  wish  that  voluntary  information  will  be  cheerfully 
received;  1  accept  your  invitation. 

1  have  for  years  i)leadcd  for  a  tariff  commission  to  settle  all  of  our 
commercial  questions  and  also  to  create  a  new  Cabinet  officer,  secretary 
of  commerce.  I  sent  Senator  Cullom  some  points  on  this  question;  it 
has  been  a  hobby  of  mine  for  twenty  years.  A  secretary  and  a  com- 
mission, the  latter  to  be  composed  of  men  especially  trained  to  examine 
all  economic,  tariil",  and  commercial  problems,  and  to  be  appointed  with- 
out reference  to  their  political  prejudices,  could  easily  settle  to  th*^ 
satisfaction  of  the  entire  country  just  where  the  interests  of  the  United 
States  lie.  From  my  standpoint  such  questions  are  easily  solved, 
provided  your  cranium  is  built  the  right  way. 

Second.  The  Postmaster-General  could  recommend  to  the  Congress  a 
law  establishing  gratuities  to  all  accessible  i)oints,  in  order  to  bring 
about  a  closer  relationship  with  such  nations  that  we  feel  inclined  to 
enter  into  Avith  recii)rocal  commercial  treaties;  in  other  words,  "  Blaine- 
ism"  from  stem  to  stern  is  the  true  policy.  He  was  a  good  enough 
skii)])er  on  this  subject  for  any  of  us  to  follow;  he  had  the  right  idea; 
but  those  collateral  points  previously  alluded  to  must  become  a  part  of 
reciprocal  treaties — money  exchanges,  transportation,  and  the  reciprocal 
interests  entered  into.  Tliose  three  points  must  be  established  con- 
nectively  before  success  can  be  attained  as  a  whole.  Subsidies  repre- 
sent one-third  of  the  whole,  merchant-marine  service  another  third,  and 
reciprocal  treaties  bind  the  other  two-thirds. 

Third.  Another  suggestion  that  1  would  make  would  be  for  the  Sec- 
retary ol"  State  to  interest  not  only  our  ambassadors,  ministers,  and 
consul  generals,  but  consuls  everywhere  to  suggest  to  the  Dei)artment 
the  best  way  to  obtain  the  trade  at  their  respective  countries  or  ports. 
In  fact  it  should  be  the  duty  of  our  ministers  everywhere  to  submit 
annually  to  the  State  Department  a  report  on  reciprocal  trade  interests. 
When  we  get  ourselves  into  the  form  here  cited  as  a  postscript,  with  a 
fairly  high  prescriptive  tariff,  then  "Old  Glory"  will  once  more  estab- 
lish its  right  to  the  commercial  supremacy  of  the  world.  The  North, 
South.  East,  and  West  will  all  share  in  the  general  prosperity.     As  a 

H.  Hep.  2203 2U 


¥ 


Ui    «*i 


450 


RKCIPROCITY    STATEMENTS. 


matter  of  fact,  a  nation  after  all  is  merely  an  exticinely  large  family 
wliose  business  should  be  settled  for  tbeir  own  interests  and  not  adjusted 
by  aliens. 

The  writer  has  made  the  circuit  of  the  commercial  world  at  least  a 
dozen  times  in  the  last  twenty-five  years,  so  the  court  knows  just 
exactly  what  it  is  talking  about. 


The  JosepMne  Moore  Company,  Chicago, 

We  manufacture,  mostly  for  the  wholesale  trade,  toilet  prepaiafcions 
for  ladies.  Our  foreign  trade  extends  now  to  France  and  Canada,  but 
while  we  are  under  this  present  depressed  trade  condition,  will  make  no 
further  efforts  to  oxtend  our  foreign  trade.  Our  business  relations  with 
business  men  have  compelled  us  to  consider  more  and  more  our  national 
att'airs,  and,  as  our  American  market  is  the  be.st  in  the  world,  we  think 
that  an  almost  ideal  national  condition  would  be  for  us — (1)  generous 
protection  f(n'  our  industries  and  our  homes;  (2)  intelligent  leciprocity 
with  other  nations;  (3)  honest  civil  service;  (4)  international  money. 

We  are  a  iirm  of  ladies,  and  have  no  votes  bearing  on  the  above 
conditionsj  but  what  influence  we  may  have  shall  go  in  favor  of  them. 


The  Shar2)less  Dye-  Wood  Extract  Company,  Philadelphia. 

1.  The  Sharpless  Dye  Wood  Extract  Company. 

2.  Dyewoods  and  dyewood  extracts. 

3.  Capital,  $1,000,000;  number  of  persons  employed,  about  150;  vahie 
of  annual  products,  about  $1,000,000. 

4.  Our  market  is  about  85  per  cent  at  home  and  15  per  cent  abroad. 

5.  We  sell  direct  to  foreign  dealers. 

G.  We  have  made  efforts  to  extend  our  foreign  trade  in  Great  Biitain, 
Germany,  Belgium,  Holland,  and  Spain  with  fair  success. 

7.  The  duty  levied  in  France  and  Russia  upon  our  products  are  prac- 
tically prohibitory.  The  ideas  of  protection  to  domestic  industries  (as 
well  as  for  purposes  of  revenue)  are  so  firmly  established  in  both  these 
countries  that,  although  their  markets  are  extremely  desirable  to  Ameri- 
cans, we  presume  there  would  be  little  use  in  attem]itiug  to  have  them 
changed  by  ordinary  diplomatic  means,  as  regards  onr  goods. 

8.  Within  a  few  yeai'S  there  has  been  a  change  in  the  French  tariff 
which  apparently  makes  it  easier  for  foreigners  to  introduce  dyeing 
extracts  into  that  country, inasmuch  as  the  previous  law  absolutely  pro- 
hibited under  any  conditions  the  importation  of  foreign-made  dyeing 
extracts,  but  the  tariff  <luties  are  now  placed  at  such  a  rate  as  renders 
comiietition  from  foreign  lands  impracticable.  In  Russia  until  a  few 
years  ago  there  was  no  duty  upon  dyeing  extracts,  but  in  order  to  favor 
the  manufacture  of  these  goods  on  the  Jialtic,  there  was  a  duty  imposed 
of  about  50  per  cent,  which  practically  excludes  all  foreign-made  dyeing 
extracts. 

9.  The  removal  or  reduction  of  the  customs  duties  in  Germany,  France, 
and  Russia  would  open  a  large  market  to  our  products  which  we  should 
be  quick  to  avail  of. 

10.  The  output  of  our  establishment  is  about  double  that  of  six  years 
ago. 


RECIPROCITY    STATEMENTS. 


451 


11.  The  present  cost  of  production  is  considerably  less  than  six  years 
ago,  on  account  of  the  adoption  of  approved  appliances.  Wages,  raw 
material,  and  transportation  rates  cost  approximately  the  same. 

12.  Present  selling  prices  are  lower  than  those  of  six  years  a^o. 

13.  In  Germany  we  meet  with  German  manufacturers,  and  in  Spain, 
Belgium,  and  Holland  with  both  French  and  Gerjnsiu  manufactnicrs. 

14.  Our  foreign  competitors  have  the  advantage  over  us  of  very  much 
lower  wages  and  interest  charges,  and  a  slight  disadvantage  of  trans- 
portation of  crude  material. 

15.  In  quality  and  price  we  can  compete  with  any  foreign  manu- 
facturers we  have  met. 

10.  The  total  product  in  the  United  States  in  our  line  of  goods  lias 
probably  decreased  during  the  last  six  years,  aniline  dyes  being  used 
instead. 

17.  The  possible  output  of  all  of  the  factories  in  our  line  in  the  United 
Stat<'s  can  not  be  absorbed  by  the  domestic  market.  If  all  the  foreign 
markets  were  open  to  us,  probably  one-fourth  of  their  output,  possibly 
one-third,  could  be  exported  to  a  profit. 

18.  The  reciprocity  trciities  made  in  1890  do  not  aftect  our  goods. 

19.  I  am  not  competent  to  answer  this  question. 

:iO.  I  favor  tne  application  of  a  reciprocity  principle  in  future  tariff 
legislation. 


'  six  years 


» 


GLASS,  CROCKEUY,  ETC. 


t  } 


CIllCUhAll  OF  INQUIHY  TO  MANUFACTURERS. 

COMikllTTEE   ON    WAYS   AND   MEANS, 

House  of  Representatives, 
Washington,  I).  C,  March  4, 1896. 

Sir:  III  order  tliat  tlioy  may  give  more  intelligent  consideration  to 
j)ending  and  i)rop()sed  k'gislatiou,  ilie  subcoininittee  of  the  Committee 
on  Ways  and  Means  ol"  the  Ilonse  of  Representatives  in  charge  of  bills 
relating  to  re('ij)r()city  arrangements  anil  commercial  treaties  wonld  be 
greatly  obliged  if  you  would  forward  them,  at  your  earliest  convenience, 
your  views  and  suggestions,  and  such  information  as  you  are  able  to 
furnish  upon  the  following  points,  namely: 

1.  Give  full  name  and  address  of  firm  or  companj. 

2.  Lines  of  manufacture. 

3.  Amount  of  capital,  number  ol  )6r8ons  employed,  and  value  of 
annual  product. 

4.  Do  you  find  your  market  at  home  or  abroad,  iwd,  if  both,  in  wliat 
proportion  ? 

5.  Do  you  sell  direct  to  foreign  dealers  or  through  commission  houses! 

6.  Have  you  made  any  direct  etfort  to  extend  your  foreign  trade; 
and  if  so,  by  what  means,  with  what  success,  and  in  what  countries  If 

7.  Are  yon  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  prevent  the 
extensit)n  of  your  trade;  and  if  so,  can  you  suggest  any  means  by 
which  they  may  be  removed? 

8.  What  changes  have  recently  occurred  in  the  tariffs  of  foreign 
countries  so  far  as  they  relate  to  your  lines  of  manufacture? 

9.  How  far  would  the  removal  or  reduction  of  the  customs  duties 
imposed  by  foreign  nations  upon  the  merchandise  in  which  you  deal 
aid  in  the  extension  of  your  export  trade? 

10.  What  is  the  output  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  How  does  the  present  cost  of  production  compare  Tfith  that  of 
six  years  ago,  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  land? 

12.  How  do  present  selling  prices  compare  vith  those  of  six  years 
ago? 

13.  What  competition  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  markets? 

11.  What  advantages  do  your  foreign  competitors  have  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

15.  To  Avhat  extent  can  you  compete  with  foreign  mauufactui'ers  in 
quality  and  prices II 
452 


RECIPROCITY   STATEMENTS. 


453 


I 


10.  ri;i3  the  total  product  of  the  United  States  in  your  line  of  maua- 
facturo  iiicreast'd  or  decreased  during  the  hist  six  yearst 

17.  What  proportion  ot'tlie  total  present  and  possible  oiitput  in  your 
lines  of  manufacture  in  the  United  States  can  be  absorbed  by  the 
domestic  market;  and  what  would  be  your  estimate  of  the  natural  sur- 
plus for  export  if  all  manufacturers  in  your  lines  were  producing  to 
their  full  capacity?  (The  purpose  of  this  in(]uiry  is  to  secure  as  accurate 
an  estimate  as  ])ossible  of  the  necessity  for  new  foreign  markets  to  the 
manufacturers  of  the  United  States.) 

18.  Was  the  general  eiiect  of  the  reciprocity  tre.aties  made  in  1890 
favorable  or  unfavorable  to  the  export  trade  of  the  United  States,  and 
what  was  the  eiiect  of  their  repeal? 

19.  What  was  the  effect  upon  farm  products  particularly! 

(If  your  rei^lies  to  inquries  17  and  18  are  based  u])on  actual  experi- 
ence, i)lease  give  details  as  fully  as  possible.) 

20.  Do  you  favor  the  application  of  the  reciprocity  principle  to  future 
tariff  legislation,  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
Amori(!an  nations,  so  far  as  ])ossil)le? 

These  inquiries  have  been  forwarded  to  several  hundred  persons, 
firms,  and  corporations  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  rejdies 
are  intended  for  publication  with  a  report  which  the  Connnittee  on 
Ways  and  Means  will  make  to  the  House  of  Eepresentatives;  but,  if 
so  desired,  any  information  received  will  be  regarded  as  confidential. 
All  vfilues  should  be  ex]n'essed  in  United  States  gold,  and  all  quantities 
in  our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  inquiries  will  be  appreciated. 
I  am,  sir,  your  obedient  servant, 

A.  J.  Hopkins,  Chairman. 


EBPLIE8. 


lers  in 


5. 

8. 
9. 


Homer  Langhlin,  East  Liverpool,  Ohio, 

2.  White  tabic  and  toilet  wares;  also  decorated  wares* 

3.  None. 

4.  No. 
Obstacle,  high  labor. 
About  same;  less  than  1892. 
Twenty  per  cent  and  25  per  cent  cheaper. 

10.  They  can  ship  to  the  chief  wholesale  distributing  markets  of  this 
country  25  to  33.^  per  cent  cheaper  than  we  can. 

11.  Fully  in  quality;  diflicult  in  price. 

12.  Favorable;  repeal  injured  the  purchasing  power  of  part  of  our 
trade. 

13.  Yes;  if  without  sacrificing  any  American  industry. 

A  restoration  of  the  so  called  "moiety  system"  to  prevent  evasions  of 
cnstcmis  duties,  and  the  application  of  specific  and  compound  duties  is 
of  the  highest  importance  in  restoring  trade.  I  believe  that  we  should 
sacrifice  no  American  industry  in  the  name  of  reciprocity  of  trade  with 
any  foreign  country.  We  should  only  sacrifice  revenue  upon  a  new 
competing  product  for  the  purpose  of  securing  more  foreign  trade. 


■■  m 


454 


RECIPROCITY    STATEMENTS. 


Any  act  antliorizing  the  Presideut  to  negotiate  reciprocity  treaties 
should  liniK  that  power  vvitliin  these  lines.  To  secure  the  home  trade 
that  Europe  now  gets  in  our  own  country  is  more  important  than  any 
other  trade  That  England's  foreign  trade  is  iiuniensc,  in  luanul'actuied 
goods  all  concede,  and  some  ot  our  people  look  jit  it  witli  longing  eyes. 
When  it  is  known  that  one-half  of  all  this  is  furnished  by  this  country, 
and  the  other  half  only  conies  from  all  her  favorite  colonies  and  the 
rest  of  the  world,  don't  it  seem  ridiculous  that  we  should  try  to  go 
away  from  home  to  meet  her  where  she  is  so  well  intrcn(;hed,  and 
neglect  to  take  that  ])art  so  easy  to  capture  in  our  midst?  I  would  also 
r<uich  for  the  foreign  trade  easiest  to  get  without  sacrilicing  any  other 
American  interest. 


■p\ 


The  Hartford  City  Olass  Company,  JECartford  City,  Ind. 

2.  Manufacturers  of  window  glass;  also  ground  and  chipped  glass. 

3.  (-Capital  invested,  I  I50,(M)(».  AVIien  in  full  opciation  550  people  are 
em])loycd,  and  the  value  of  our  output  this  year  will  be  about  $760,000. 

4.  (3ur  sales  are  contlned  stiictly  to  the  home  market. 

5.  We  have  made  no  sales  direct  to  foreign  dealers  or  through  com- 
mission houses.  As  far  as  we  know,  none  of  our  glass  has  ever  been 
exported. 

G.  We  have  made  no  direct  efforts  to  acquire  or  extend  foreign  trade, 
as  we  have  more  tlian  our  hands  full  in  inotecting  our  home  market  in 
comi)etitioii  with  foreign  glass. 

7.  Our  location  is  such  that  we  obtain  no  direct  informrition  from  the 
customs  authorities  relative  to  the  manner  of  handling  importations 
of  window  glass,  but  the  Indiana  manufacturers,  composed  of  35  com- 
l)anies,  are  under  the  impression  that  there  is  something  wrong  with 
the  customs  regulations  relative  to  the  collection  of  duties.  Thomas  F. 
Hart,  of  Muncie,  Ind.,  who  is  selling  agent  for  the  Western  Window 
Glass  Company,  has  this  question  up  with  the  Treasury  Department  to 
learn  Avhat  instructions  are  given  to  the  collectors  by  that  Department, 
and  if  the  instructions  are  sutficieutly  clear  the  fault  must  lie  with  the 
collectors  at  the  different  ports.  Most  of  the  glass  coming  in  now  is  at 
Jioston  and  New  York.  Our  manager  has  not  been  familiar  Avith 
importations  for  the  i>ast  live  years,  but  states  that  previous  to  that 
time  window  glass  was  brought  into  this  country  in  a  very  careless  way. 
Importations  were  generally  made  in  full  cargoes,  and  great  concessions 
were  obtained  on  account  of  breakage  that  the  importers  were  not 
entitled  to.  We  do  not  know  what  facilities  they  have  for  the  payment 
of  duties,  if  any,  but  the  Indiana  manufacturers  thought  enough  of  the 
point  to  start  an  investigation. 

8.  The  changes  that  have  occurred  most  recently  in  the  taiiff's  of 
foreign  countries  do  not  interest  us,  as  we  are  not  exporters.  This  also 
applies  to  question  No.  9. 

0.  Answered  above. 

10.  Our  company  has  been  in  existence  since  January,  1891,  and 
during  1891  the  output  of  our  plant  was  about  $200,000,  or  less  than 
100,000  boxes  of  glass,  while  this  year  we  will  i)roduce  about  250,000 
boxes. 

11.  The  present  cost  of  production  is  from  10  to  15  per  cent  less  than 
six  years  ago,  the  leduction  aftectnig  both  material  and  wages. 

1 2.  At  the  present  tiiue  the  selling  prices  are  about  the  same  as  those 
of  six  years  ago,  possibly  a  very  litU«  better,  but  duiiug  the  iuterveu- 


BEOH'ROCITY    STATEMENTS. 


455 


iiig  throe  or  four  years  the  prices  were  ruinous.     Last  year  one  half  of 
our  glass  was  sold  at  less  than  cost  of  production. 

13.  The  competition  wo  meet  with  from  foreign  miinufacturers  is  in 
our  home  market.  In  order  to  obtain  any  share  of  the  Atlantic  and 
Pacific  coast  business  the  milkers  of  American  window  glass  have  to 
make  an  exceedingly  low  pricie^-from  15  to  li5  per  cent  lower  than  cur- 
rent prices  in  ell'cct  at  interior  points;  and  in  some  instances  we  have 
heard  of  foreign  glass  being  sold  this  year  in  Chicago  in  competition 
with  the  American  produ(!t. 

14.  Our  foreign  competitors  have  a  great  advantage  over  us  in  the 
cost  of  labor,  and  by  shipping  their  glass  in  cargoes  at  the  special  rates, 
they  <;an  obtain  from  Antwerp  and  other  foreign  i)ort«  to  New  York 
and  Boston  lower  rates  than  we  can  obtain  from  Indiana  to  New  York. 
This  does  not  apply  alone  to  window  glass,  but  we  have  known,  within 
the  past  year,  of  shipments  of  salt  cake  cimiing  from  Liverpool,  being 
delivered  in  Hartford  City  at  20  cents  i)er  100  pounds,  while  the  rate  to 
New  York  City  is  10  cents. 

15.  We  are  able  to  furnish  window  glass  equal  in  quality  to  the 
foreign  in  eveiy  respect.  The  question  of  price  has  been  answered 
above. 

1(5.  At  present  the  total  output  of  window  glass  in  this  country  is 
linger  than  it  has  been  for  several  years,  althougli  we  do  not  believe 
there  has  been  any  increase  in  the  capacity  of  the  plants.  The  dis- 
astrous yenrs  which  extend  back  to  1893  closed  up  a  great  many  fac- 
tories and  they  remained  closed  until  those  factories  that  remained  in 
oi)eration  commenced  to  see  a  little  profit  on  the  advance  in  prices, 
wiien  they  went  into  operation  again.  There  are  probably  more  pots 
in  operation  now  than  there  has  been  for  the  past  three  or  four  years. 

17.  We  believe  that  with  no  increase  in  the  capacity  of  the  factories 
for  the  manufacture  of  window  glass  the  present  and  possible  output 
can  be  marketed  at  h(Mne;  providing,  of  course,  that  American  glass 
is  not  displaced  by  the  foreign  article,  which  is  now  coming  into  the 
country  at  the  rate  of  1,500,000  boxes  per  anum.  If  this  million  and  a 
half  boxes  continues  to  come  to  the  country,  and  the  factories  are  oper- 
ated to  their  full  capacity,  it  would  mal-.e  it  necessary  for  the  home 
plants  to  close  down  their  factories  for  a  sulllcient  length  of  time  to 
curtail  the  production  up  to  this  quantity,  or  to  seek  new  markets — 
necessarily  foreign  markets — in  which  to  dispose  of  the  excess. 

18.  We  are  not  able  to  give  a  satisfactory  reply. 

19.  The  same. 

20.  W^e  favor  the  application  of  reciprocity  principles  for  future  tariff 
legislation. 


•iifs  of 
lis  also 


Union  Porcelain  Works,  BrooMyn,  N.  T, 

2.  Manufacture  a  general  line  of  hard  vitreous  porcelain,  generally 
known  in  this  country  as  china  ware,  for  table  use  and  electric  insula- 
tion. 

3, 4.  Have  very  little  foreign  trade  and  do  not  specially  seek  it.  for 
th3  reason  that  the  manufacturers  of  the  United  States,  except  in  a  few 
instances,  had  better  get  much  nearer  the  demands  of  their  own  country 
than  they  have  ever  been  before  they  seek  a  foreign  market. 

5,  G,  7.  These  questions  I  have  not  studied. 

8.  Only  about  half  the  volume  it  was  thiee,  four,  five,  and  six  years 
ago. 


456 


RECIPROCITY    STATEMENTS. 


9.  Our  selling  prices  are  about  33J  to  40  per  cent  less  than  three,  four, 
ftv^e,  and  six  years  ago,  wliicli  means  that  our  profits  are  all  gone  and 
our  ca])ital  inii)aired  to  keej)  our  factory  open. 

10.  Principally  in  cost  of  labor. 

11.  We  cau  equal  ibreign  nianufa<'ture  as  to  quality  and  are  compelled 
to  r\03t  them  as  to  prices,  but  it  is  ruinous,  and  would  close  our  factory 
were  it  not  for  the  hope  that  our  t.aritf  hiws  will  soon  be  restored  to  the 
IMcKinley  standard;  and  the  free  list  of  that  tariff'  should  be  vastly 
reduced. 

12.  Beyond  a  question  the  effect  of  the  reciprocity  treaties  as  partially 
develoi/cd  under  Harrison's  administration  were  favorable  to  the  de- 
veloj^ment  of  an  export  trade,  and  the  repeal  of  that  law  was  most 
unfortunate  and  a  gross  jjolitieal  blunder. 

13.  I  do  favor  the  application  of  the  reciprocity  principle  to  future 
tarilf  legislation,  because  it  gradually  provides  a  way  to  an  outlet  for 
our  suri>lus  as  we  approach  that  point,  and  materially  assists  the  farm- 
ing and  shi|)ping  interests.  The  shipping  interest  we  cau  not  foster  too 
mucli,  for  every  line  of  steamers  that  sail  to  a  foreign  port  siiould  be  iii 
some  way  subsidized,  either  direct  or  indirect.  Export  trade  can  not 
be  bnill  up  where  tliere  is  no  line  of  steamers  running  at  certain  fixed 
dates,  but  restricted  to  North  and  South  America  and  adjacent  islaiuls. 
The  old  European  nations  will  for  a  great  many  years  to  come  have 
cheaper  capital  and  cheaper  labor,  and  that  cheap  labor  is  better  drilled 
into  special  conditions  which  makes  cheap  labor  produce  still  chea])er. 
Hence,  no  bargain  can  be  made  between  us  that  will  result  to  our 
advantage.  In  short,  make  commercial  treaties  with  all  whom  we  of 
the  United  States  cau  excel  in  manufacturing;  make  iu)ne  with  those 
Avho  cau  excel  us.  As  to  authorizing  the  President  alone  to  ne-^otiate 
commercial  treaties  without  the  advice  and  consent  of  the  S<']iate  needs 
consideration.  If  that  is  thought  to  be  wise,  the  law  should  be  care- 
fully drawu  aud  restricted. 


R.  E.  Dietz  Company^  New  York. 

2.  The  linfl  of  export  trade  which  we  are  anxious  to  develop  is  tubular 
laiiterus  aud  street  lamps. 

3.  Ouv  foreign  trade  i"*  at  present  with  the  West  Indies  aud  South 
America. 

4.  We  have  made  determined  efforts  to  build  up  a  foreign  trade. 
With  that  object  in  view  we  lutve  sent  travelers  to  South  i^merica  with 
complete  lines  of  8am[)les,  and  have  met  with  gratifying  success  except 
in  Mexico,  Peru,  (^niie,  and  Brazil. 

We  believe  that  those  countries  would  p'ovide  lirst-class  nuirkets  for 
our  goods  if  tlie  conditions  were  such  as  to  make  it  possible  to  effect 
reciprocal  arrangements. 

5.  There  are  many  discriminations  and  obstacles  which  prevent  the 
extension  of  our  ex]>ort  trade  which  could  be  removed.  The  customs 
laws  in  effect  in  South  AuuMican  countries  is  the princii)al,  and,  we  nuiy 
add,  almost  the  ouly  barrier,  .^n  our  o])inion  these  eouhl  be  renu)ved 
or  materially  reduced  by  nenacting  the  leciprocal  law  which  was 
embodied  in  the  tariff"  act  of  O<,tober  1,  IHIHK 

G.  VN  e  cau  not  point  to  any  special  changes  in  the  tariff"  acts  of  the 
countries  to  whence  our  goods  are  ex^^orted.  The  abrogation  of  the 
commercial  treaties  by  the  tariff'  act  of  August  28, 1894,  was  a  severe 


RBCIPROCITY    STATEMENTS. 


457 


blow  to  the  export  trade,  and  resulted  in  many  chanpfes  in  the  tariff 
laws  of  South  ^  merican  countries,  as  well  as  the  West  Indies. 

7.  The  removal  or  reduction  of  the  duties  imposed  on  our  goods  by 
the  countries  mentioned  would  increase  our  export  trade  fully  100  per 
cent. 

8.  We  have  increased  our  export  trade  during  the  past  six  years 
fully  300  per  cent. 

9.  Our  export  jnices  are  about  10  per  cent  lower  than  they  were  six 
years  ago. 

10.  Foreign  competitors  have  decided  advantages  over  us  in  the  cost 
of  material  and  in  transportation  facilities.  They  can  purchase  tin  plate 
cheaper  because  it  can  be  obtained  free  of  duty.  That  factor  could  be 
removed  if  the  Treasury  Department  would  provide  practical  regula- 
tions for  theexecution  of  the  drawback  law,  which  authorizes  the  allow- 
ance of  drawback  of  duties  paid  on  materials  entering  into  the  manu- 
facture of  exported  articles.  fJnder  the  past  administration  this  law 
was  fairly  and  honestly  administered,  but  under  the  existing  regime  al 
this  port  the  merest  technical! iv  has  been  i)(>uiM'ed  on  as  an  excuse  to 
deny  tlie  payment  of  the  drawoack.  Tliis  is  really  a  very  ser-ous  con- 
si<leration  in  the  export  trade,  because  the  margin  of  profit  is  necessarily 
so  small  that  it  is  absolutely  essential  that  we  should  be  placed  on  the 
s;ime  footing  with  our  foreign  competitors  in  so  far  as  cost  of  material 
is  concerned. 

11.  We  have  no  difficulty  in  competing  with  foreign  manufacturers  in 
so  far  as  (piality  is  concerned.  In  fact  the  quality  of  our  goods  has 
sold  them,  as  our  prices  are  about  15  per  cent  higher  than  those  charged 
by  our  tbreigu  competitors. 

12.  There  is  no  question  but  that  the  reciprocity  treaties  made  in  pur- 
suance of  the  tariff  actof  October  1,1800,  were  beneficial  to  the  export 
trade  of  the  United  litates,  and  that  their  repeal  pioved  a  serious  blow 
to  many  exporting  manufacturers.  So  far  as  we  are  concerned  their 
repeal  gave  Germany  a  decided  advantage  over  us,  especially  with  Brazil 
and  Mexico.  Large  contracts  have  recently  been  pla<ed  in  Germany 
foi'  lanterns  and  street  lamps — more  especially  the  latter — which  for- 
merly were  awarded  to  us. 

13.  We  ceitainly  do  favor  most  heartily  the  api)lication  of  the  reci 
})rocity  princii)le  to  futuro  tariff  legislation,  and  the  enactment  of  a 
general  law  authorizing  the  President  to  negotiate  reciprocity  treaties 
with  both  European  and  American  nations  so  far  as  i)ossible. 

It  is  now  generally  acknowledged  that  the  revenue  munt  be  raised 
chiefly  in  the  future  from  a  tariff  on  imj)oits.  This  will  of  course 
increase  the  cost  of  materials  used  in  many  branches  of  manufactures. 
If  the  drawback  law  is  fairly  and  honestly  adnnnistered  under  practical 
regulations  in  harmony  with  modern  cotiimercial  <'ondit ions,  the  taritl 
on  foreign  niaterials  will  not  affect  the  export  tiadeto  any  extent  worthy 
of  mention. 


CLOCKS,  WATCHES,   FANCY    GOODS. 


OmCULAR  OF  INQTTTRY  TO  MANFFAOTURERS. 

COMMTTTKFi  ON   WAYS  AND  MEANS, 

llDtTSB  OP  Representatives, 
Washington,  P.  (l,  Marvh  4,  1896. 

8tr:  fn  ordor  t]\n\  Hipy  inn.v  gi^'Q  limi-fe  liitelllpelit  cotisltlemtiori  to 
pending  and  projiused  h^j^islatldti,  ilie  80b(!onimlrt«e  of  thp  Committee 
on  Ways  ;ind  Means  of  the  House  of  I'einesontatives  I'n  cliarge  of  Mils 
relating  to  reciprocity  arvHiigcmcnts  and  commercial  treaties  wonid  be 
greatly  ohiigecl  if  you  wouHl  i'orward  them,  at  yovir  earnest  conven- 
ience, your  views  ajul  suggestions,  and  sucli  information  as  you  are 
able  to  furnish  upon  the  following  ^loints,  namely: 

1.  Give  full  name  and  address  of  firm  or  company. 

2.  Lines  of  manufacture. 

3.  Amount  of  capital,  number  of  persons  employed,  and  value  of 
annual  product. 

4.  1  >o  you  find  your  market  at  home  or  abro^,  and,  if  both,  in  what 
pro]K>rtion? 

5.  Do  yiui  sell  direct  to  foreign  dealers  or  through  commission  housest 
(>.  Have  you   nmde  any  direct  ettbrt  to  extend  your  foreign  trade; 

and  if  so,  by  what  means,  with  what  -^uecess,  and  in  what  countries? 

7  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  ov 
cnstom^  regulations  of  any  fo  'ign  country  that  restrict  or  prevent  the 
exten--.t»u  of  your  trade;  and  if  so,  can  you  suggest  any  means  by 
which  they  may  be  removed! 

8.  Wliiit  changes  have  recently  occurred  in  the  taritts  of  foreign 
countries  so  far  as  they  relate  to  your  Ir.ies  of  nuniutacture/ 

9.  How  far  would  the  removal  or  reduction  of  the  customs  duties 
imposed  by  foreign  nations  ni)on  the  merchandlBe  in  which  you  deal 
aid  in  the  extension  of  your  e-.port  trade? 

10.  What  is  the  output  of  you^  establishment  compared  with  that  of 
six  years  ago^' 

11.  How  does  the  present  cost  of  production  compare  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  laud? 

12.  How  do  present  selling  prices  anmpare  with  those  of  six  years 
ago? 

13.  What  com])etit!on  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  markets? 

14.  What  advantages  do  jour  foreign  competitors  have  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

ir>.  To  what  e  .teut  can  you  compete  with  foreign  mauufavturers  in 
quality  and  i)rice8l 
468 


DS. 


RS. 


VES, 

i  4,  1^96. 

leiation  to 
Ooniinittpe 
ifre  oi' liills 
B  would  be 
3st  con  veil- 
as  yuu  are 


id  value  of 

ith,  in  what 

imi  honsest 

eign  trade; 

uiitries? 

lie  IoWkS  ov 

)reveut  the 

means  by 

of  foreign 

I 

GUIS  duties 
]i'  you  deal 

ifch  that  of 

nth  that  of 
[d  transpor- 

If  six  years 

[ufacturers, 

over  you 
to  foreign 

ra'turers  in 


BECIPKOCITY    STATEMENTS. 


459 


16.  Has  the  total  product  of  the  Uuited  States  in  your  line  of  manu- 
facture increased  or  decreased  during  the  last  six  years? 

17.  What  proportion  of  the  total  present  and  possible  output  in  your 
lines  of  manufacture  in  the  United  States  can  be  absorbed  by  the 
domestic  market;  and  what  would  be  your  estimate  of  the  natural  sur- 
j>lus  for  export  if  all  manufacturers  in  your  lines  were  producing  to 
their  full  capacity?  (The  purpose  of  this  inquiry  is  to  secure  as  accurate 
an  estinmte  as  possible  of  the  necessity  for  new  foreign  markets  to  the 
niiiinifacturers  of  the  United  States.) 

18.  Was  the  general  efte(;t  of  the  reciprocity  treaties  made  in  1890 
favorable  or  unfavorable  to  the  export  trade  of  the  United  States,  and 
what  was  the  effect  of  their  repeal? 

]f>.  What  was  the  efln.'ct  upon  farm  products  particularly? 

(If  your  replies  to  inquiries  17  and  18  are  based  upon  actual  eiperi 
ence,  please  give  details  as  fully  as  possible.) 

20.  Do  you  favor  the  application  of  the  reciprocity  principle  to  future 
tarilf  legislati<-n,  and  the  ena'itment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
Airicrican  nations,  so  far  as  possible? 

These  iniiuiries  have  bee.i  forwarded  to  several  hundred  persons, 
firms,  and  corporations  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  leplies 
are  intended  for  ])ublicatioi.  with  a  report  which  the  Committee  on 
\\'ays  and  Means  will  make  lo  the  llouse  of  Rejiiesentativcs;  but.  it 
so  ilcsired,  any  information  received  will  be  regarded  as  confidential. 
All  values  sliouhl  be  expressed  in  United  States  gold,  and  all  (i  nan  titles 
in  our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  impiiries  will  be  appreciated. 
I  am,  sir,  your  obedient  servant, 

A.  J.  Hopkins,  Chairman. 


REPLIES. 


The  Ansonia  Clock  Company^  Jfeu)  York. 

2.  We  manufacture  clocks  and  all  kinds  of  bronzes. 

u.  Our  business  extends  to  all  parts  of  the  world. 

4,  We  have  made  efforts  to  do  foreign  business.  First,  by  correspond- 
eiM'e  and  catalogues;  second}  by  i)ersonal  representation  with  the  fol- 
lowing countries:  We  do  business  in  Great  Britain,  France,  Sweden, 
Norway,  Denmark,  China,  Japan,  East  Indies,  Australia,  Brazil,  Chile, 
Argentina,  Mexico,  Central  America,  and  South  Africa. 

a.  Discrimination  or  obstacles  in  the  laws  and  customs  regulations 
exist  in  many  countries.  We  suffer  esi)ccially  in  France,  wliere  the 
(^omnu'rcial  ti-eaty  willi  Germany  permits  German  goods  to  come  into 
competition  with  ours  and  be  introduced  at  a  much  lower  rate  of  duty, 
and  cm  much  more  favorable  terms. 

0.  The  same  olistade  exists  in  Cuba  and  other  countries. 

7.  The  removal  of  this  discrimination  against  us  would  result  in  a 
considerable  extension  of  our  export  tra<le. 

8.  The  volume  of  our  business  for  exjtort  has  not  increased,  eom 
l>ared  with  the  business  done  six  years  ago. 

0.  The  ]>rices  at  which  we  sell  our  goods  at  present  are  decidedly 
lov»er  than  those  which  we  t>btained  six  years  ago. 


4€0 


RECIPROCITY   STATEMENTS. 


10,  Foreign  competitors  have  the  advantage  of  cheaper  r  .tea  of 
freight,  and  the  advantage  also  of  certain  custom-house  re^nlations 
and  du\:ie»  which  permit  goods  to  be  introduced  into  tlie  foreign 
countries  at  hwer  rates  than  ours. 

11.  The  quality  of  our  goods  is  far  superior  to  those  produced  by 
foreign  competitors.     The  prices  of  our  goods  are  higher. 

1.'}.  We  most  decidedly  favor  the  application  of  the  "reciprocity" 
principle  for  future  taiiii'  legislation. 


The  Moridmi  Bronze  Company,  New  York,  N.  T. 

1.  The  Meriden  Bronze  Company,  Meriden,  Conn.,  and  30  Park 
Place,  New  York. 

2.  Lamj^s,  gas  fixtures,  brass  and  onyx  tables,  ornaments,  etc. 

3.  Oapitalemployed,  over  $200,000;  employees,  175;  annual  product, 
$liOO,000. 

4.  JVIarket  at  home  chiefly;  possibly  10  per  cent  .abroad. 

5.  Generally  tinough  commission  houses  for  foreign  trade. 

0.  We  have  sent  samples  abroad  and  paid  commissions  to  salesmen 
for  South  American  and  African  tratle,  but  with  very  little  success. 

7.  Our  experience  with  foreign  maikets  is  not  sullicient  to  give  an 
intelligent  reply. 

8.  Same  answer  as  No.  7. 

9.  Same  answer  as  No.  7, 

10.  About  the  same. 

11.  AVe  have  been  obliged  to  reduce  wages  in  an  effort  to  sell  at  home 
in  competition  with  imported  lamps;  yet  our  trade  in  lani])s  fell  ott' 
laigely  last  year,  and  our  net  loss  for  the  year  was  $10,000,  while 
imi)orters  of  foreign  lamps  report  a  large  increase  in  business  and  good 
profits.  We  can  not  compete  with  foreign  ornamental  lamps  at  even 
the  present  low  wages  an^  duties.  Cost  of  material  less  than  six 
years  ago. 

12.  Selling  prices  are  about  half  those  of  six  years  ago. 

13.  Killing  competition  in  every  market;  but  we  would  be  satisfied 
with  home  market  if  properly  i)rotected. 

14.  They  have  the  advantage  of  lower  wages,  but  we  do  not  know 
about  transiiortation,  which  is  not  a  serious  element  in  high-jtriced 
goods,  scich  as  we  make. 

15.  We  can  compete  successfully  in  quality,  but  we  are  obliged  to 
pay  higher  wages;  and,  in  fact,  workmen  now  receive  such  low  wages  in 
this  country  that  they  have  no  sur)>lus  for  luxuries,  and  if  paid  at  for- 
eign rate  we  doubt  if  they  could  live  at  all;  yet  we  ciiu  not  do  a  profit- 
able business  now,  owing  to  imported  goods  being  «olr'  here  below  our 
cost  of  production. 

IG.  In  fine  goods  the  quantity  has  decreased,  but  there  is  a  general 
tend'Micy  to  decrease  the  quality  in  a  vain  attempt  to  compete  with 
fofigii  goods. 

17.  !ii  tine  goods  the  home  market  would  .ibsinb  far  more  than  is 
now  made  ii'  it  were  not  for  toreign  «'oin))etition.  It  woulil  be  an 
object  lesson  lor  you  to  visit  New  iork  City  avd  go  tiiiough  the 
immense  st^tres  which  sell  for  foreign  mamii'iu'tnrers  fi-  .i  .t  ;  ..  ^or 
importatiou,  and  are  growing  rich  tlKiaby.  Jn  cl)(;,|i'  ;':<*<id';,  vl;..'e 
the  ii'ost  improved  machinery  iaemijioyed  in  turning  out  tc.  ni'tu  ';  ■■■ 
eould  supply  tho  world. 


»aper  r  .tes  of 
se  rej^iilations 
[o  tlie  foreign 

I  produced  by 

"reciprocity" 


r. 

and   30  Park 

snts,  etc. 
imual  product, 

d. 
ade. 

IS  to  salesmen 
utle  success. 
eut  to  give  an 


i  to  sell  ntliome 

lamps  tell  olf 

$10,000,  while 

;iness  and  good 

lamps  at  even 

less  than  six 


d  be  satisfied 

do  not  know 
in  hi gli- priced 

aie  obliged  to 
1  low  wages  in 
if  paid  at  for- 
lot  do  a  profit- 
re  below  our 

e  is  a  general 
compete  with 

more  than  is 
would    be   an 
ti. rough  the 
.1'  1  .•  *'or 
(Mid-,  '.••  li.'e 
,1.  u'lau,.-^.  ■  -' 


RECIPROCITY    STATEMENTS. 


461 


18.  Favorable,  and  their  repeal  cut  off  a  large  part  of  the  trade, 

19.  Anything  which  lowers  wages  reduces  the  laborer's  power  to  buy 
even  farm  products,  and  the  farm  and  garden  products  are  reduced  in 
price  and  (juantity  in  proportion  to  the  ability  of  the  workmen  in  neigh- 
boring cities  to  i)urchase.  The  farmers  about  Meriden  have  sutfered  in 
proportion  as  the  employees  in  the  factories  in  the  city  have  had  their 
wages  reduced  and  labor  taken  from  them  by  foreign  competitors. 

20.  Wc  do,  and  we  also  favor  a  protective  tariff  wliich  will  enable  us 
to  market  our  tine  goods  at  home  and  pay  fair  wages  to  our  employees, 
with  a  living  profit  to  ourselves. 

It  is  undoubtedly  true  that  a  large  part  of  the  depression  in  business 
is  due  to  the  fact  that  there  is  a  large  army  of  unemployed  worknu^n  in 
this  country,  and  those  who  are  at  work  mt^  not  proi)erly  paid,  owing  to 
the  low  prices  and  foreign  conii)etition.  We  can  expect  better  times 
when  there  is  labor  for  all  who  are  willing  to  work  at  wages  sutticient 
to  provide  the  necessities  of  life  and  leave  them  a  surplus  for  some  of 
the  luxuries,  but  until  then  we  can  have  little  hope  for  a  revival  of 
trade. 

These  answ^ers  and  remarks  may  not  all  of  them  come  directly  under 
the  special  subject  of  your  incjuiry,  but  neverthehiss  we  feel  that  there 
is  room  for  legislation  upon  the  broader  grounds  suggested,  and  would 
be  glad  to  have  you  interested  in  securing  America  for  Americans. 


Keystone  Watch  Oase  Company,  Philadelphia,  Pa,* 

2.  Manufacturers  of  watch  cases. 

3.  Capital,  $800,000;  now  employ  about  650  persons;  value  of  annual 
product,  about  $1,000,000. 

4.  We  tind  our  market  both  at  home  and  abroad;  the  lat*:er  is  com- 
paratively small  as  yet  and  amounts  to  only  about  5  per  cent  of  our 
entire  business. 

5.  We  sell  both  direct  to  foreign  dealers  and  through  commission 
houses. 

(5.  We  have  made  diiect  efforts  to  extend  our  foreign  trade  upon  the 
(continent  of  Europe,  in  Houth  Africa,  South  America,  Central  America, 
Mexico,  (Canada,  Australia,  New  Zealand,  China,  and  -Japan  by  adver- 
tising in  the  journals  which  circulate  in  those  countries,  by  correspond- 
ing and  sending  illustrated  catalogues  (and  in  some  instances  samples) 
to  the  dealers  in  those  countries,  and  by  solicitation  of  salesmen.  In 
only  one  or  two  instances  have  these  salesmen  represented  us  solely, 
nearly  always  being  men  who  represented  several  lines  of  manufactured 
goods  on  con\iuission. 

As  indicated  by  the  small  ])roportion  of  our  sales  in  foreign  countries, 
we  have  as  yet  only  met  with  indifferent  success. 

7.  Mexico  exacts  a  duty  of  $7  each  upon  watch  cases  which  will 
stand  the  acid  test,  consequently  our  tilled  cases,  that  is,  cases  made 
with  two  plates  of  gold  and  a  plate  of  composition  metal  between,  and 
which  we  guarantee  to  wear  tor  twenty  years  and  wiiicih  we  sell  at 
about  $10,  have  to  stand  the  same  duty — viz,  $7 — that  the  tine  $50  solid- 
gold  case  does;  consequently,  it  is  al.nost  impossible  for  us  to  do  any 
business  in  this  line  of  goods,  alth  )ugh  they  are  in  deimmd  in  that 
country  and  with  a  fair  proportion  of  duty  could  be  sohi  to  a  large 
extent. 

8.  New  Bouth  Wale*  has  recently  beeu  made  a  free  port. 


'':'  ■  m 


I'll 


:(: 


M 


462 


EECIPROCITY    STATEMENTS. 


9.  We  think  there  is  uo  question  but  that  the  removal  of  customs 
duties  by  foreign  nations  so  that  our  goods  could  be  olaced  at  tlie  ]o\v 
est  possible  price  with  the  people  of  those  nations      >uld  assist  us  in 
lindin^  a  market  for  them. 

10.  The  output  of  our  establishment  at  the  present  time  is  about 
(JO  per  cent  of  what  it  was  six  years  ago. 

11.  The  present  cost  of  products  is  slightly  decreased  as  c(iini)ared 
with  that  of  six  years  ago. 

12.  Selling  prices,  at  this  time,  are  about  10  j)er  cent  less  than  they 
were  six  years  ago. 

13.  Our  greatest  competitors  in  foreign  markets  are  the  manufac- 
turers of  Switzerland;  we  ccmie  in  contact  ^vith  them  in  all  foreign 
(iountries.  We  also  have  the  competition  of  the  English  manufacturers 
in  Great  r)ritian. 

14.  Our  foreign  competitors  have  great  advantage  over  us  in  cheaper 
labor  and  in  cheaper  transportation.  At  this  time  we  are  particularly 
handicapped  in  our  endeavor  to  find  a  market  in  China  and  Japan 
because  a  clause  of  the  interstate  act  forbids  lailroads  from  taking  gold 
or  silver  watches  as  freight.  We  are,  therefore,  forced  to  shij)  across 
the  country  by  express,  and  as  the  express  business  is  controlled  by 
Wells,  Fargo  &  Co.,  we  are  forced  to  pay  very  high  rates.  Only  a  few 
days  since  we  had  to  i>ay  $38.10  expressage  ujion  a  package  to  Japan 
which  would  have  been  carried  as  freight  for  $3.50.  We  could  send 
these  shipments  via  Liverpool  ver;  much  cheaper,  but  the  greater 
length  of  time  required  is  prohibitive. 

15.  We  have  no  trouble  at  all  in  competing  with  foreign  manufac- 
turers as  to  quality,  but,  owing  to  cheaper  labor  and  transportation, 
they  are  enabled  to  undersell  us. 

1().  The  total  product  in  our  lino  of  business  began  decreasing  ii>  1SM3, 
and  at  the  present  time  is  not  m*  .•  than  60  per  cent  of  wliat  it  was  prior 
to  1893. 

17.  At  the  present  time  not  more  than  60  per  cent  of  the  possible  out 
put  of  watches  can  be  abswrh^l  in  this  market.    Consequently,  if  all 
manufacturers  were  now  pr<^tucing  to  their  full  cai»acity  at  least  40  jier 
ceiit  of  their  outuut  wouk  have  to  find  a  market  elsewhere. 

18.  We  noticew  in  tmo  or  thi  ee  instances,  after  i  he  arranging  of  the 
reciprocity  trea«nes  tfeit  thert'  was  a  general  tendency  toward  moie 
universal  and  -loser  ^Uations  with  some  countries,  aiwl  a  desiw  on  the 
part  of  the  im*r(hai}r  ^  of  thosse  countries  to  do  business  with  the  I'uited 
States.  Th  cy  serms  to  have  been  checked,  and  we  attribute 
it  to  the  rev*  ■•■  '  treaties. 

20.  We  aaawe  .  most  emphatically,  yes. 


5 


customs 
the  low- 
st  us  in 

is  about 

Mupared 

lan  they 

uanut'ac- 
I  foreijjfn 
facturers 

I  cheaper 
ticuhiily 
id  Japan 
iiiij;'  j^old 
i]>  across 
L'olled  by 
nly  a  few 
to  Japan 
)uld  send 
)   greater 

manufac- 
jortation, 

{jit>  I  sua, 

wAik  prior 

isiMeout 
,  if  all 
ist  40  i>er 

ig  of  tlU> 
ird  mow 
('  on  the 
li'  I'nited 
attributi 


FURNITURE,  PIANOS,  AND  ORGANS. 


CIRCULAR  OP  INQUIRY  TO  MANUFACTURERS. 

Committee  on  Ways  and  Means, 

HoTTSE  OF  Representatives, 
Washington,  U.  C,  March  i,  1896. 

Sir:  In  order  that  they  may  give  more  intelligent  consideration  to 
pending  and  i)roposed  legislation,  the  subcommittee  of  the  Committee 
on  Ways  and  Means  of  the  House  of  Representatives  in  charge  of  bills 
relating  to  recipro(!ity  arrangements  and  commercial  treaties  would  be 
greatly  obliged  if  you  would  forward  them,  at  your  earliest  conven- 
ience, your  views  and  suggestions,  and  such  iniurmatiou  as  you  are 
able  to  furnish  upon  the  following  ])oint8,  namely: 

1.  Give  full  name  and  address  of  firm  or  company. 

2.  Lines  of  manufacture. 

8.  Amount  of  capital,  number  of  persons  employed,  and  value  at 
annual  product. 

4.  lio  you  And  your  market  at  home  or  abroad,  and,  if  both,  in  whaE 
pruj»or(ion  ? 

5,  Do  you  sell  direct  to  foreign  dealers  or  through  commission  houises? 
a.  Hav«  you  made  any  direct  effort  to  extend  your  foreign  tiade; 

and  if  so,  by  what  means,  Avith  what  success,  and  in  whait  countries! 

7.  Are  you  aware  of  any  discrimiufttions  or  obstart-^s  in  the  laws  or 
cnstonis  regrdations  of  any  foreign  country  that  rest-  <t  or  preveut  the 
extension  of  your  trade;  and  if  so,  can  you  suggerfc  any  meuois  by 
which  they  may  be  removed? 

8.  What  changftM  have  recently  occurred  in  the  tariffs  of  foreigu 
countries  so  far  as  they  reiafe  to  your  lines  of  manufacturet 

9.  How  far  would  the  removal  or  reduction  of  the  customs  duties 
imposed  by  foreign  nations  upon  the  merchandise  in  which  you  deal 
aid  in  the  extension  of  your  export  trade t 

10.  What  is  the  output  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  How  does  the  present  cost  of  production  compare  with  that  of 
six  years  ago;  including  w  ages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  land? 

12.  How  do  present  selling  prices  compare  with  those  of  sii  years 
ago! 

13.  What  competition  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  markets? 

14.  Wluit  advantages  do  your  foreign  competitors  have  over  you 
in  1  he  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

15.  To  what  extent  can  you  compete  with  foreign  manufacturers  in 
qualifv  ->ii(]  prices? 

]«  -las  th*-  total  product  of  the  United  States  in  your  line  of  mauu- 
iacture  iucieaided  or  decreased  during  tk«  last  six  years t 

463 


'I. 


464 


RECIPIiOClTY    STATEMENTS. 


17.  What  proportion  of  the  total  present  and  possible  output  in  your 
lines  of  nuiimfuclure  in  the  United  States  can  be  absorbed  by  the 
domestic  market;  and  what  would  be  your  estimate  of  tlie  natural  sur- 
plus for  export  if  all  manufacturers  in  your  lines  were  producing;'  to 
their  full  capacity?  (The  purpose  of  this  inquiry  is  to  secure  as  accurate 
an  estimate  as  possible  of  the  necessity  for  new  foreign  markets  to  the 
manufacturers  of  the  United  States.) 

18.  Was  the  general  ettect  of  the  reciprocity  treaties  made  in  1890 
favorable  or  unfavorable  to  the  export  trade  of  the  United  States,  and 
what  was  the  effect  of  their  repeal? 

19.  What  was  the  etlect  upon  farm  products  particularly? 

(If  your  replies  to  inquiries  17  and  18  are  based  upon  actual  experi- 
ence, please  give  details  as  fully  as  possible.) 

20.  l>o  you  favor  the  application  of  tiie  reciprocity  principle  to  fntiire 
tariff  legislation,  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  recii)rocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible? 

These  inquiries  have  been  forwarded  to  several  hundred  persons, 
firms,  and  corporations  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  re])lios 
are  intended  for  publication  with  a  report  which  the  Committee  on 
Ways  and  Means  will  make  to  the  House  of  Kepresentatives;  but,  if 
80  desired,  any  information  received  will  be  regarded  as  confidential. 
All  values  should  be  expressed  in  United  States  gold,  and  all  quantities 
in  our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
thftt  is  not  called  for  by  the  above  inquiries  will  be  appreciat«>d. 
I  am,  air,  year  obedient  servant, 

A.  J.  HopKiKft,  OhairmaiK 


REPLIES. 


W.  W.  Kimball  Oompany,  Pianos  and  Organs,  0hicag9. 

1.  Firm  name,  "  W.  W.  Kimball  Company."  Incorporated  under  the 
laws  of  the  State  of  Illinois, 

2.  Manufacturers  of  pianos,  and  reed,  portable,  anu  stationary  pipe 
organs. 

3.  Amount  of  (uipital  stock  Invested,  $3,750,000;  number  of  persons 
employed,  1,400, 

4.  Practically  all  our  trade  is  home  market, 

5.  What  we  sell  abroad  is  sold  direct  from  our  Chicago  office,  and  not 
through  commission  liounes. 

6.  We  have  not  made  any  special  eflPort  to  extend  our  trade  abfoa<l, 

10.  The  output  (tf  oui'  factories  for  189(»  will  be  8,000  pianos  and 
12,0(>0  organs.  We  can  not  estimate  it  as  comoarcd  with  six  years  ago, 
as  at  that  time  we  were  making  but  very  few  pianos. 

11.  The  cost  of  production  at  the  present  time  in  our  shops  is  pos 
Bibly  a  little  less  than  six  years  ago  on  account  of  Improved  maciiiiM/y, 

12.  Our  selling  prices  are  a  little  less  now  than  six  yvMH  ago.  not 
because  we  can  allord  it,  but  owing  to  the  depressed  condition  of  the 
country  we  are  obliged  to  make  a  sacrifice  so  as  to  work  off  our  stock 
and  try  and  keej)  our  men  at  work. 

13.  We  do  not  experience  any  difficulty  in  meeting  competition,  either 
•t  home  or  abroad. 


RECIPROCITY    STATEMENTS. 


465 


16.  The  pioduct  in  our  line,  takinfjj  i)ianoH  and  oifj^ans  toilet lier,  we 
do  not  tliiiik  has  increased  iiny  diiiiny  the  pant  six  years,  l-'iom  1889 
to  18'.)li  tlie  tiade  materially  increased.  From  1892  to  the  piesent  time 
there  lias  been  a  large  decrease. 

18.  The  reciprocity  treaties  of  1890,  in  our  judjyment,  were  very  favor- 
able to  the  United  States,  and  should  not  have  been  repealed. 

19.  Any  enactments  that  elfci^t  the  general  jjrosperity  of  the  country 
must  have  a  like  ell'ect  on  the  farmer;  hence  depression  in  manufactur- 
ing lines  means  depression  for  the  farmer. 


imoad, 
)8  and 
|rs  ago, 


J.  Dornette  &  Bro.,  Cincinnati, 

2.  Manufacturers  of  desks  and  olllice  furniture. 

3.  lOngland,  Africii,  Australia,  Central  an<l  South  America. 

4.  V\'e  have  made  dil'leient  ellbrts  to  extend  (mr  foreign  trade — 
through  advertising,  through  exjxa't  commission  houses,  and  mostly 
by  corres])(»nden('e.     We  have  had  good  success,  ami  feel  well  pleased. 

5.  We  know  nothing  regarding  any  obstacles  or  d  scriminations  in 
laws  or  customs  regulations  of  any  foreign  countries,  and  should  like  to 
be  better  ])oste<l,  if  any  exist.  All  we  know  is  that  some  countries 
have  too  high  duty,  thus  barring  us  out. 

6.  In  answer  to  question  0,  we  are  not  aware  of  any  recent  changes  in 
tariffs  of  foreign  countries. 

7.  l>y  the  removal  or  reduction  of  the  customs  duty  imposed  by 
Gernumy,  Holland,  Helgium,  etc.,  we  could  undoubtedly  increase  our 
sales  in  those  countries. 

8.  Six  years  ago  we  did  very  little  export,  and  to-day  we  export  50 
per  cent  of  our  manufacture. 

9.  The  present  selling  prices  in  domestic  goods  are  much  less  than  six 
years  ago,  but  our  export  prices  have  changed  l)ut  very  little. 

10.  Our  foreign  com[)etitors  have  no  advantage  only  in  labor.  They 
desire  American  walnut  and  oak,  and  therefore  demand  our  goods. 

We  have  no  competition  with  foreign  nu'rchants,  and  the  only  diaw- 
back  we  have  is  the  comi>etition  we  have  with  American  nianulacturers 
wlio  wish  to  get  a  start  there. 

In  answer  to  (juestion  12,  can  say  we  are  ignorant  of  the  fact  apper- 
taining to  this  and  can  not  answer  you  on  this. 

To  question  1.'}  we  must  answer  "yes,"  to  our  good;  but  would  be 
detrimental  to  others. 

We  have  further  to  state  that  there  is  a  great  demand  for  American 
goods  in  foreign  countries,  and  if  the  trade  desired  is  solicited  in  the 
right  way  and  we  Americans  give  them  good,  honest  goods,  we  are 
bound  to  do  a  good  business  and  with  an  increase  every  year.  For  the 
last  three  yeais  we  have  run  our  factory  full  time  and  full  force,  and 
export  trade  did  it. 


|is  pos 
hinery. 
[go.  not 
I  of  the 
Ir  stock 

L  either 


Mason  &  Hamlin  Company,  pianos  and  organs, 

3.  About  #800,<>0().     Four  hundred  persons  employed.     Annual  prod- 
uct, about  11,000,(100  per  catalogue  piice. 

4.  Both   foreign  and   domestic.     Say,  one  fourth   foreign j   balance 
domestic. 

5.  Both  through  <lealers  and  commission  houses. 

H.  Rep.  2203 30 


466 


RECIPROCITY    STATEMENTS. 


6.  Yes;  by  travelers  iu  Canada,  European  couiitriea,  South  America, 
and  Mexico,  with  iair  snccess. 

7.  Yes;  Canada,  France,  Mexico,  etc 

8.  J)o  not  know  of  any. 

9.  Would  be  a  great  benefit. 

10.  About  four-filths. 

11.  About  the  same. 

12.  About  the  same. 

13.  English  and  (icrman.    In  Europe,  Canada,  Meifco,  South  Amer- 
ica, ])utcli  and  English  colonies. 

14.  Goods  cost  30  to  40  per  cent  less. 

15.  Conipete  successfully  in  quality,  but  can  not  in  x)rices. 

IG.  Organs  about  2~)  per  cent  less.    Pianos  materially  increased. 

17.  (a)  Three-fourths,  and  perhaps  more.     (6)  One-fourth. 

18.  Treaties  favorable.    Kepeal  of  treaties  unfavorable. 

19.  Not  in  our  line.     Do  not  know. 

20.  Yes,  most  heartily. 


M.  and  M.  Box  Company^  Marinette,  W\», 

1.  Marinette  and  Menominee  Box  Company. 

2.  Box  shocks  (boxes  in  the  knockdown). 

3.  Cai)ital,  $50,000.    Employ  100  men.    Annual  product,  $150,000. 

4.  Three- fourths  in  United  States,  one-fourth  in  southern  Eepublics. 

5.  Direct  to  consumers, 

6.  Yes. 

7.  No. 

8.  None. 

9.  Can  not  tell.  An  extended  trade  in  other  lines  with  South  America 
and  Australia,  with  cheap  transportation,  would  give  ua  some  business. 

10.  About  the  same. 

11.  About  the  same. 

12.  About  8  per  cent  less. 

13.  Canadian  and  Norwegian  in  Europo;  Canadian  in  Eastern  States. 

14.  Lower  wages,  cheaper  lumber,  quicker  means  of  transportation. 

15.  Our  quality  the  best;  our  prices  a  little  higher. 
IG.  Increased. 

17.  Capacity  to  produce  in  United  States  is  50  per  cent  more  than 
requirements.  Could  produce  for  export  $10,000,000  to  $40,000,000 
worth. 

18.  No  change  noticed. 

We  respectfully  suggest  that  any  change  in  tariff  that  allowed  Cana- 
dian box  shocks  free  into  this  country  would  close  half  the  factories  in 
our  line.  We  estimate  there  are  over  200  factories,  employing  25,000 
men  only  to  cut  lumber  into  shocks,  to  say  nothing  of  those  employed 
to  produce  the  lumber,  nails,  twine,  etc 


Story  dk  GlarTe  Piano  and  Organ  Company,  Chicago,  IU, 

2.  Pianos  and  organs. 

3.  Capital,    $450,000.     People    employed,    300.     Annual    product 
$375,000. 

4.  Two-thirds  at  home;  one-third  abroad. 


RECIPROCITY   STATEMENTS. 


467 


uenca, 


1  Amer- 


ced. 


5.  Hiive  own  house  in  London,  through  which  we  supply  forei{?n 
dealers.  Sliipianj;  facilities  can  only  be  had  from  Great  Britain  to 
many  i)laces  in  the  worhl. 

G.  Our  foreign  markets  are  Germany,  Kussia,  Sweden,  Australia, 
New  Zealand,  and  Great  JJritain. 

7.  Many  (ionn tries,  ike  Mexico,  have  what  amounts  to  prohibitive 
tarilfs.     Can  be  removed  only  by  reciprocal  arrangeinent.s. 

9.  It  would  aid  materially;  i)robably  double  our  foreign  trade. 

10.  About  one-half. 

11.  About  3o  per  «  ent  less. 

12.  Forty  per  cent  less. 

13.  Canada,  England,  (Jermany,  France.    Only  in  foreign  markets. 

14.  Cheaper  labor  and  established  lines  of  transportation. 

15.  By  superior  quality  only. 

16.  Decreased. 

17.  Perhaps  one-third  or  one-half  in  the  present  depressed  state  of 
the  country.  Twice  the  present  output  could  be  made  for  export  alone 
without  increasing  present  capacity. 

18.  Favorable.    The  elfect  of  their  repeal  was  iigurioua. 

19.  Disastrous,  without  doubt. 

20.  We  do,  most  decidedly. 


n\^ 


i 


50,000. 
epublios. 


America 
business. 


•n  States. 
l)ortatiou. 


iiore  than 
tO,000,000 


red  Cana- 
Lctories  in 
(ng  25,000 
lemployed 


In. 


product 


The  Standard  Seicing  Machine  Company,  Cleveland,  Ohio. 

2.  We  manufacture  and  sell  sewing  ma<!hines  and  their  parts. 

3.  We  have  dealings  with  nearly  all  foreign  countries. 

4.  Our  dealings  are  tlirough  our  export  agent  in  New  York  City. 

5.  We  are  particularly  hampered  in  Canada  on  account  of  duties. 
The  only  suggestion  we  can  make  is  to  have  the  laws  re])ealed. 

0.  We  are  not  aware  of  any  recent  changes  to  affect  us. 

7.  Tlie  removal  (»f  duties  on  importations  to  foreign  countries  would 
largely  increase  our  trade. 

8.  Our  export  business  for  1895  was  376  per  cent  more  '^han  six  years 
ago. 

9.  Our  export  selling  prices  are  trhe  same  as  six  years  ago. 

10.  We  have  no  data  froni  which  to  base  an  estimate. 

11.  The  quality  of  our  production  is  far  better  than  any  foreign  man- 
ufacture, and  we  can  get  a  higher  price;  but  as  the  diilerence  in  our 
cost  and  that  at  which  European  nations,  notably  German,  can  produce 
machines  is  so  great,  it  is  difficult  for  us  to  work  up  a  large  trade  at 
the  increased  price  Ave  are  obliged  to  ask,  notwithstanding  the  superior 
quality  of  the  goods. 

12.  The  reciprocity  treaty  of  1890  made  very  little  difference  with  our 
trade  with  Sorth  America,  as  it  was  mostly  under  contract,  and  the 
laws  were  not  in  effect  lonf  enough  to  give  us  an  o])portunity  to  test 
the  ultimate  effect  upon  the  trade.  We  wish,  however,  to  be  understood 
as  most  emphatic  advocates  of  reciprocity  laws  with  other  American 
States. 

13.  We  would  have  reciprocity  treaties  apply  only  to  American  coun- 
tries, for  the  reason  that  labor  in  ">ur  line  of  manufacture  is  so  much 
cheaper  in  Euiope  tliat  it  would  effect  a  radical  decrease  in  the  wages 
that  we  are  enabled  to  pay  or  close  our  shops.  This  difficulty  would  not 
be  met  with  in  any  of  our  American  countries,  especially  those  to  the 
south  of  us. 


; 


IMAGE  EVALUATION 
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23  WEST  MAIN  STREET 

WEBSTER,  N.Y.  14580 

(716)  872-4503 


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468 


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iiH 


RECIPROCITY    STATEMENTS. 


The  Globe  Company,  Cincinnati. 


2.  Business  furniture,  filing  cabinets,  office  deslis,  fnrnitnre,  etc. 

3.  AVo  do  some  little  business  with  England j  also  with  Mexico,  and 
occasionally  with  other  countries. 

4.  Have  made  no  diiect  effort  to  extend  our  foreign  trade  until  re- 
cently. We  now  have  negotiations  pending  for  a  connection  in  London, 
and  have  also  joined  with  some  other  parties  in  a  joint  rei»i'esentation 
in  ^lexico.     It  is  still  too  early  to  judge  of  resuKs. 

5.  There  arc  two  obstacles  that  restrict  the  extension  of  our  trade  in 
foreign  countries,  one  being  the  customs  duties  and  the  other  being  the 
lack  of  steamship  and  sailing-vessel  service  that  I  am  informed  other 
countries  'iijoy.  As  means  of  removing  them,  I  would  like  to  see  rec- 
iprocity treaties  established  and  steamship  lines  encouraged  by  sub- 
sidies. 

G.  The  abrogation  of  reciprocity  tre.ities  in  several  countries  have 
und(mbfodly  cut  off  some  of  our  trade. 

7.  Tlu  removal  or  reduction  of  customs  duties  on  goods  of  our  man- 
ufacture would  certainly  be  of  aid,  and  would  make  export  business 
easy  in  a  number  of  foreign  countries. 

8.  The  volume  of  our  business  is  more  than  double  that  of  six  years 
ago. 

9.  Our  selling  i)rice8  are  probably  25  per  cent  lower  than  six  years 
ago. 

10.  Our  foieign  com]»etitors  have  great  advantages  in  cost  of  trana- 
l»ortation  to  foreign  markets,  but  in  no  other  respect,  unless  they  are 
favored  nations.  Their  (;ost  may  be  lower  than  ours,  but  the  quality 
and  style  do  not  compare,  and  our  goods  would  readily  sell  at  fair  value 
if  the  obstacles  of  tariff  and  excessive  cost  of  transportation  and  poor 
facilities  were  corrected. 

11.  We  can  readily  compete  with  foreign  me -chants  in  quality  and 
prices. 

12.  The  general  effect  of  the  reciprocity  treaties  made  in  1890  were 
highly  favorable,  and  tlieir  repeal  was  a  sad  disaster  to  foreign  trade, 

1.'5.  We  do  favor  the  application  of  the  reciprocity  piinciple  to  future 
tariff  legislation,  and  the  enactment  of  a  general  law  as  mentioned. 

1  fail  to  see  how  there  could  be  a'ny  doubt  or  room  for  argument  on 
question  No.  13. 


White  Sewing  Machine  Companv,  Cleveland,  Ohio, 

2.  Sewing  niachinea, 

3.  Witlt  nearly  all  civilized  foreign  countries. 

4.  Our  efforts  to  exten<l  foreign  trade  have  embraced  the  establishing 
by  us  of  a  wholesale  agency  in  London,  with  the  continent  of  Europe 
as  its  field.  On  this  account  we  are  unable,  without  correspondence 
with  our  office  there,  to  furnish  much  detaled  information  as  to  tariff 
d.ifi(^s  or  other  hindrances  to  traffic  with  many  of  the  European  states. 
Our  direct  dealings  from  the  home  office  extend  to  South  America, 
Mexico,  Austialia,  New  Zealand,  (Janada,  and  the  British  Provinces. 
These  countries  we  leach  tlirough  special  travcliug  representatives, 
who  s()li(;it  trade  within  their  boundaries  and  under  usual  methods  of 
•ommercial  tra\'elers. 

5.  While  there  are  duties  and  some  slightly  <liscriminating  features  of 
trj'do  witii  some  of  the  South  American  states,  they  are  not  sutiicient, 


B,  etc. 
xico,  and 

>  uiitil  re- 
1  London, 
jsentatiou 

r  trade  in 
being  the 
ned  other 
to  see  rec- 
d  by  sub- 

;ries  have 

our  nian- 

1  business 

'  six  years 

six  years 

b  of  trana- 
s  they  are 
he  quality 
.  fair  value 
>.  and  poor 

uality  and 

1890  were 
gn  trade, 
e  to  future 
itioned. 
iument  on 


RECIPBOCITY    STATEMENTS. 


469 


so  far  as  they  affect  our  line  of  business,  to  be  especially  objectionable 
^"!^:Xr  Tirft'irfff  1  "^^'T^*^  T  ^•«l---tation.  ^Canada  is 
nlanSoo^/r  businor        '"'  '*  ^""''"  '^''  ^°  nearly  a  prohibitive 

n,LSly  S.t  u^^"  '"'"  '''""'^'  "'*'  "^'^^^  "^  '''  '^"^^^  t« 

7.  A  removal  or  reduction  of  custom  duties  in  any  direction  where 

'xji'or^tmde^'      ''""''''  ""^^'^^^^^^l'^'  ^^^^  ««  in  the'^extensS  of  oir 

0.  Selling  prices  have  been  nncln.nged  for  six  years. 

thch*  h!^!f!\Ty^'^'''^  ^!r^  ^^''''  "'''^"'  advantage  over  us  through 
then  being  able  to  secnre  the  servces  of  labor  more  cIkmuIv   their 

n.aSs.^^  ^'^'^""^  ''"*^'''  '""^  "^  W'ecostof  transportation  to  foreign 
J.LZvr'^"''^  *"'''• '^"  producers  in  qualify,  and  their  advantage  in  the 
hist  im  ".tioner  '"'''' '" ''"'"  ■'^"^«'"^"*  ^^"^^  experience,  from  the  causes 

flitftWf  n?;i  """*  '^'''^''  .-jny  marked  favoraide  or  unfavorable  results  as 
the  eflectof  the  reciprocity  treaties  of  18!)(M,ut  we  are  strongly  i„  lavor 
ot  the  app  ication  of  a  leciprocity  jmnciple  and  in  ti.e  ena.^nu  t  of  a 
law  authorizing  the  President  to  negoli.te  reciprocity  treaties  wtl  Ik  th 

.rC"  r\  ^"'7'^'^"  "f  ■•>»^-    if  i«  possible  that  we  have  a   eady 
been  bench. ed  much  more  than  we  are  appreciating.  ^ 


fl' 
1i 


stablishing 
of  Europe 
ispondence 
as  to  tarilf 
lean  states. 
I  America, 
Provinces, 
ssentatives, 
methods  of 


features  of 
t  suiiicient, 


1^:  I 


mmiw 


wrfmrnmrnm 


V^ 


CARS,  VEHICLES,  ETC. 


OIECULAR  OF  INQUIRY  TO  MANUFACTURERS. 

Committee  on  Ways  and  Means, 

House  of  Representatives, 
Washington,  J).  C,  March  4,  1896. 

Sm:  In  order  that  tliey  may  give  more  intelligent  consideration  to 
pending  and  proposed  legislation,  the  subcommittee  of  the  Coniniitree 
on  Ways  and  Means  of  tlie  House  of  Representatives  in  charge  of  bilh 
relating  to  reciprocity  arrangements  and  commercial  treaties  would  be 
greatly  obliged  if  you  would  forward  them,  at  your  earliest  conven- 
ience, >  our  views  and  suggestions,  and  such  information  as  you  are  able 
to  furnish  upon  the  following  points,  namely: 

1.  Give  full  name  and  address  of  firm  or  company. 

2.  Lines  of  manufacture. 

3.  Amount  of  capital,  number  of  persons  employed,  and  value  of 
annual  product. 

4.  Do  you  find  your  market  at  home  or  abroad,  and,  if  both,  in  what 
proportion  ? 

6.  Do  you  sell  direct  to  foreign  dealers  or  through  commission  houses? 
G.  Have  you  made  iiny  direct  efibrt  to  extend  your  foreign  trade; 

and  if  so,  by  what  means,  with  what  success,  and  in  what  countries'? 

7.  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  prevent  the 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  means  by 
which  they  may  be  i^moved? 

8.  What  changes  have  recently  occurred  in  the  tariffs  of  foreign 
countries  so  far  as  they  relate  to  your  lines  of  manufacture? 

9.  How  far  would  the  removal  or  reduction  of  the  customs  duties 
imposed  by  foreign  nations  upon  the  merchandise  in  which  you  deal 
aid  in  the  extension  of  your  export  trade? 

10.  What  is  the  output  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  How  does  the  present  cost  of  production  compare  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  liindl? 

12.  How  do  present  selling  prices  compare  with  those  of  six  years 
ago  ? 

l.'i.  What  competition  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  markets? 

14.  What  advantages  do  your  foreign  competitors  have  over  you 
in  the  cost  of  manufacture  and  in  transportation  charges  to  foreign 
markets? 

15.  To  what  extent  can  you  compete  with  foreign  manufacturers  in 
quality  and  prices? 

4W 


s. 


ES, 


i,  1896. 

'.ration  to 
omiuittee 
2fe  of  bill") 
would  be 
t  conven- 
u  are  able 


valdo  of 

1,  in  wbat 

m bouses 1 
gii  trade; 
ntriesl! 
le  laws  or 
?eveiit  the 
means  by 

)f  foreign 

HIS  duties 
you  deal 

tU  that  of 

tb  that  of 
transpor- 

six  years 

iacturers, 

over  you 
to  foreign 

cturers  in 


RECIPROCITY    bTATEMENTS. 


471 


16.  Has  the  total  product  of  the  United  States  in  your  line  of  nianu- 
faiCture  increased  or  decreased  during  the  last  six  years t 

17.  What  proportion  of  the  total  present  and  possible  output  in  your 
lines  of  manufacture  in  the  United  States  can  be  absorbed  by  the 
domestic  market;  and  what  would  be  your  estimate  of  the  natural  sur- 
plus for  export  if  all  manufacturers  in  your  lines  were  producing  to 
their  full  capacity  f  (The  purpose  of  this  inquiry  is  to  secure  as  accurate 
an  estimate  as  possible  of  the  necessity  for  new  foreign  markets  to  the 
manufacturers  of  the  United  States.) 

18.  Was  the  general  effect  of  the  reciprocity  treaties  made  in  1890 
favoralle  or  unfavorable  to  the  export  trade  of  the  United  States,  and 
what  was  the  effect  of  their  repeal! 

19.  What  was  the  eftect  upon  farm  products  particularly? 

(If  your  replies  to  inquiries  17  and  18  are  based  upon  actual  experi- 
ence, please  give  details  as  fully  as  possible.) 

20.  Do  you  favor  the  application  of  the  reciprocity  principle  to  future 
tariff  legislation,  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible? 

Those  inquiries  have  been  forwarded  to  several  hundred  persons, 
firms,*  and  corporation 3  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  export  trade,  and  the  replies 
are  intended  for  publication  with  a  report  whi(;h  the  Committee  on 
Ways  and  Means  will  make  to  the  House  of  Eepresentatives;  but,  if 
so  desired,  any  information  received  will  be  regarded  as  confidential. 
All  values  saould  be  expressed  in  United  States  gold,  and  all  quantities 
in  our  weights  and  measures. 

Anj-^  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  inquiries  will  be  appreciated. 
I  am,  sir,  your  obedient  servant, 

A.  J.  HoPKENS,  Chairman. 


REPLIES. 


The  WelU  and  French  Gompany,  Chicago,  111. 

The  subject  of  tbe  circular  sent  out  by  your  committee  on  March  4  is 
of  such  great  importance  to  this  country  that  1  ar,k  permission  to  express 
an  opiTiion,  w'lich  is  by  way  of  fill ler  explanation  of  the  subject  r.nd  not 
an  answer  to  any  of  the  interrogatories  made  by  your  committee. 

You  will  receive  so  much  more  definite  and  important  information  on 
the  subject  of  exportation  of  our  uianufactures,  that  I  have  only  one  idea 
to  suggest  in  connection  therewith,  which  may  prove  interesting  enough 
to  carry  some  weight  with  you,  namely:  Our  country  has  a  manufactur- 
ing capacity  at  present  which  largely  exceeds  its  own  requirements. 
The  result  of  this  condition  of  affairs  is  that  we  have  constant  changes 
in  values  and  "  ups  and  downs"  in  the  life  of  the  manufacturer.  Depend- 
ent upon  the  conditions  of  our  own  consumption,  we  have  no  stability 
of  prices  and  no  certainty  of  a  return  for  the  work  done.  We  have 
either  very  exaggerated  prices  or  such  that  will  not  remunerate  tlie 
manufacturer. 

The  question  is  how  to  provide  for  this  state  of  affairs,  and  relieve 
the  country  of  any  glut  which  may  arise  from  unfavorable  internal  con- 
dittona.    Thera  is  one  way  out  of  this  difficulty,  in  my  humble  opiniou. 


■:'     f 


ff  1 


■I  ■  I  imnw 


'Vm 


472 


RECIPROCITY    STATEMENTS. 


m' 


namely,  to  i)rovide  a  (luiiii)iiis  ground  for  the  excess  of  our  mamifac- 
turo  beyond  our  needs.  This  provided,  we  should  have  a  more  equal 
comlitioii  of  prices  and  a  luoper  compensation  for  work  done  in  this 
country.  This  dumj>in{>  jfrouiul  is  made  use  of  by  Euroi)e  in  foreign 
countries,  aiul  its  vjdue  is  fully  understood  by  English,  German,  and 
French  msinufacturers. 

If  our  (xovernnu'nt  were  to  provide  for  a  liberal  extension  of  our  for- 
eign business,  eiuiourafiing  it  and  propagating  it— as  you  know  much 
belter  how  to  accomi>lish  tlian  I  could  suggest — we  would  have  a  stead- 
ier and  more  stable  growth  of  our  nuiuufactures.  Too  great  a  variation 
of  i)rices  will  unsettle  the  conunerce  of  any  country,  as  has  been  illus- 
trated bettei-  in  the  last  twelve  months  than  ever  before.  Provide  for 
an  overllow,  and  the  contents  of  a  vessel  will  be  com])aratively  quiet. 

The  questions  now  discussed  by  the  National  Association  of  >laiiu- 
facturers,  and  suggested  by  your  circular,  are  of  such  great  importiiiice 
that  3  trust  your  associates  will  see  the  necessity  of  some  determined 
and  r.ysteinatic  action  to  accomi>lish  what  is  required  for  this  country. 

I  will  i>ro(:e('d  to  answer  categorically  your  various  interrogatories. 

1.  The  Wells  and  French  ('omj)any. 

2.  IManufaclurers  of  all  kinds  of  freight  cars,  street-railway  cars,  cast 
wheels,  and  combination  bridges.  • 

3.  Do  not  trade  with  foreign  countries. 

4.  Have  not  nnule  any  direct  ettbrt  to  extend  foreign  trade,  for  the 
following  reasons: 

Competition  with  Central  American  and  South  American  States,  as 
well  as  with  China  and  Japan,  w(mld  be  difficult,  owing  to  the  relations 
now  established  by  European  countries.  The  difliculty  is  also  enhanced 
by  the  absence  of  proper  transi)ortation  facilities.  Being  situated  in 
the  interior  of  the  (country,  we  could  ])rol)ably  overcome  the  cost  of 
transi)ortation  to  the  seaboard,  but  this  would  avail  nothing,  because 
the  facilities  for  transportation  from  the  seaboard  to  the  foreign  coun- 
tries is  limited  and  unsatisfactory,  compared  with  the  oi;.)Ortunities 
offered  by  the  European  States.  To  ship  to  the  Pacitic  Coast,  where 
abundant  transi)ortation  facilities  exist  for  China  and  Japari.  would  be 
impossible,  owing  to  the  exorbitant  rate  of  freight  from  Chicago  to  the 
Pacilic  Coast  by  rail.  Our  natural  route  should  be  via  New  Orleans 
and  through  a  canal  between  the  two  hemisj)hcres,  thence  further  wes*j. 

6.  I  am  not  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
custom  regulations  of  any  country  that  restrict  or  prevent  the  exten- 
sion of  (mr  trade.  Inq^'diments  will  naturally  exist  wherever  the  inter- 
course between  countries  is  small.  This  friction  can  only  be  overcome 
by  an  extension  of  business. 

6.  Unable  to  answer  the  question. 

7.  Can  not  answer.  Almost  all  railroad  enterprises  which  involve 
our  manufacture  are  receiving  special  legislation  in  the  countries  where 
they  are  located,  and  are  generally  exempt  from  payment  of  any  duty 
on  steel  and  rolling  stock  for  the  construction  and  operation  of  railroads. 

8.  Volume  of  our  business  is  exceptional.  Our  company  is  the  only 
one  which  has  been  running  continually  since  last  October  to  its  full 
cipacity.     (This  refers  to  car  works.) 

9.  Selling  p'ii^es  are  about  50  per  cent  less  than  those  of  six  years  ago. 

10.  Quest  inn  is  too  diflficult  to  answer,  concerning  cost  of  merchandise 
as  regards  foreign  com])etitors.  Transportation  charges  are  already 
referred  to  in  a  fornu^r  answer.  The  lack  of  direct  lines  from  the  i>orts 
is  the  principal  cause. 

11.  We  can  ccnn pete  with  any  country  in  (luality  and  prices;  would 
be  prepared  to  make  more  specilic  auswer  to  this  if  desired. 


RECIPROCITY    STATEMENTS. 


473 


nainif ac- 
ne equal 
le  in  this 
II  foreign 
nan,  and 

f  onr  for- 
ow  much 
)  a  stead- 
vai'iation 
een  illus- 
ovide  for 
ily  quiet, 
of  Mann- 
q)ortanee 
sterniined 
,  country, 
■itories. 

cars,  cast 


e,  for  the 


Statv'S,  as 
relations 
enhanced 
tuated  in 
le  cost  of 
:,  because 
ifiii  coun- 
ort  unities 
St,  where 
would  be 
[go  to  the 
V  Orleans 
her  west, 
laws  or 
le  exten- 
the  inter- 
overcome 


involve 
ies  where 
any  duty 
railroads. 

tlie  only 
to  its  full 

^ears  apo. 
chaiulise 
',  already 
tlie  jmrts 

■s;  would 


12.  Having  had  but  little  experience  in  export  trade,  this  question 
can  oniy  be  answered  in  a  general  Tay ;  believe  that  reciprocity  treaties, 
particularly  with  southein  countries,  would  be  beneficial. 

13.  Would  favor  the  a])plication  of  the  reciprocity  principle  to  future 
tariif  legislation,  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties,  with  American  uatious  in 
l>articular. 


Brownell  Car  Company ,  8t.  Louis,  Mo, 

Our  location,  so  far  from  the  seaboard,  practically  prevents  us  from 
succcssfull}'  competing  for  foreigti  business  with  firms  more  favorably 
loc  ited,  so  we  do  not  feel  a  direct  interest  in  the  subject ;  but  as  a  general 
proposition,  and  in  answer  to  the  twentieth  inquiry,  we  would  say  that 
we  do  favor  the  api)lication  of  the  reciprocity  princii)les  and  the  enact- 
ment of  a  gei'eral  law  authorizing  the  President  to  negotiate  reciprocity 
principles. 

We  beiiove  thai  i)olicy,  if  carried  out,  will  have  a  tendency  to  increase 
the  manufa<;turing,  agricultural,  and  other  interests  of  this  country, 
and  that  in  turn  will  tend  to  d«!velop  and  enlarge  our  cities,  which  in 
turn  will  require  more  street  cars,  and  so  indirectly  benefit  our  own 
business. 

Any  legislation  that  will  tend  to  develop  the  resources  of  this  country, 
in  our  opinion,  can  not  fail  to  be  beneficial  and  desirable. 


The  Norton  Door-Chcclc  and  Spring  Company,  Boston, 

The  only  article  I  manufacture  is  a  door-check,  and  these  are  sold 
through  an  agent  in  London,  who  distributes  througlnnit  the  Continent. 
1  do  not  know  the  details  of  his  business  excepting  in  a  general  way, 
and  in  answer  to  your  question  4  1  will  say  that  my  foreign  market  is 
about  as  large  as  the  one  in  this  country.  Incidentally,  I  have  aeard 
my  agent  say  that  the  discrimination  in  France  against  articles,  finished 
in  nickel  plate  amounts  to  an  entire  prohibition  of  our  goods  in  that 
market,  as  most  of  our  iiroduct  is  finished  in  this  manner. 

The  output  of  our  establishment  is  about  the  same  as  it  was  six 
years  ago,  and  the  cost  of  production  has  varied  very  little  in  that 
time.  The  selling  prices  are  lowrer,  but  that  is  in  consequeuce  of  com- 
petition. 


The  Muncie  Wheel  Company,  Munoie,  Tnd, 

2.  Vehicles,  wheels,  and  wheel  materials. 

3.  Sixty-four  thousand  dollars;  100  peiBOnfi;  $lii5,000. 

4.  At  home  only. 

5.  Do  not  solicit  foreign  tiade. 

6.      No.  _         __      _  _ ...„.i;,...^._.. 

7.  None.      'T^-''-^  „.',.. 

8-  No.  _,.  :...^u_ 

9.  None. 

10.  We  are  only  five  years  old. 

11.  Twenty  five  per  cent  less  than  five  years  ago. 


! 


''li. 


474 


RECIPROCITY    STATEMENTS. 


12.  Twenty-flve  per  ceut  less. 

13.  None. 

14.  Have  no  foreign  competition. 

15.  Foreigners  do  not  use  our  style  of  goods  to  any  extent. 
1(5.  Not  mucli  cliange. 

17.  Fifty  per  cent. 

IS  iiud  19.  Can  not  answer  them  from  actual  experience. 

20.  We  favor  these. 


Chattanooga  Gar  and  Foundry  Company, 

2.  Railway  freight  cars,  car  wheels,  mine  and  plantation  cars,  and  a 
general  line  of  foundry  work. 

3.  One  hundred  thousand  dollars;  from  100  to  250  employees;  from 
$100,000  to  ft5200,000. 

4.  At  home. 

5.  Do  not  sell  outside  United  States. 

10.  Only  about  one-half. 

11.  Material  is  cheaper  and  wages  lower,  perhaps  25  per  cent  on  an 
average.    Transportation  about  tlie  same. 

12.  Considerably  lower;  market  unsteady;  no  ruling  prices;  cuts  are 
made  to  kop  business  going,  even  at  a  loss. 

13.  No  foreign  competition. 

14.  Cheaper  laboi';  cheap  transportation,  to  reach  coast  cities. 

15.  Foreign  goods  in  my  line  do  not  reach  this  territory. 
10.  Have  seen  no  late  statistics. 

17.  Demand  oft",  until  many  works  are  idle. 

18.  Reciprocity  of  1800  Avas  favorable  to  export  trade,  creating  a 
demand,  aiul  repeal  of  treaties  has  disturbed  credit  with  foreign  coun- 
tries; in  other  words,  our  nation  repudiated  its  obligations  without 
negotiation  or  consent  of  other  parties. 

19.  Statistics  show  a  large  falling  off  in  the  demands  for  products  of 
the  farm  since  the  repeal  of  reciprocity. 

20.  Yes;  the  reciprocity  clause  of  the  McKinley  law  of  1890  was  a 
"stem-winder,"  so  to  speak;  the  principle  embodied ia  that  reciprocity 
was  flrst-class. 


The  Tricycle  Manufacturing  Company,  Springfield,  Ohio. 

We  do  most  emphatically  "  favor  the  application  of  the  reciprocity 
jirinciple  to  future  tariff  legislation." 


I 


1%. 


4 


Oohimbus  Buggy  Company,  Columbus,  Ohio, 

I  received  your  invitation  to  be  present  at  a  hearing  of  ycnr  com- 
mittee upon  the  subject  of  reciprocity  and  commertjial  treaties.  The 
industry  that  I  am  most  largely  couuGcted  with  is  that  of  the  manufac- 
ture of  carriages  and  vehicles.  The  r.aw  materi.al  and  the  manufactured 
articles  that  enter  into  the  construction  of  vehicles  are  all  produced  in 
the  United  States.  The  average  number  of  persons  employed,  when 
business  is  in  its  normal  condition,  is  about  1,500,  and  the  annual 
product  averages,  including  carriages,  wagons,  and  carts,  1,250,000  vehi- 


■ 


Ml 


1 


RECIPROCITY   STATEMENTS. 


475 


rs,  and  a 
les;  from 

jnt  on  an 
cuts  are 

es. 

'eating  a 
ign  couu- 
i  without 

oducts  of 

500  was  a 
ciprocity 

0. 

ciprocity 


cur  com- 
es. The 
nianufac- 
ifactured 
Kluced  in 
ed,  when 
)  annual 
OOOveM- 


cles,  amounting  to  $11*5,000,000.  The  market  for  our  manufactured 
product  is  both  at  home  and  abroad.  About  90  ])er  cent  of  it  is  at  lionie 
and  10  per  cent  abroad.  Exi)ort  sales  are  made  throu{»;h  commission 
houses  and  direct  to  foreign  dealers.  We  are  and  have  been  continu- 
ally making  efforts  to  extend  foreign  trade  by  correspondence,  libeial 
advertising,  and  through  traveling  representatives.  The  foreign  trade 
has  been  largely  in  the  Latin  n;  "ions,  and  lOngland,  Germany,  l]elginin, 
and  South  Africa.  Tin;  output  of  our  establishments  has  been  curtailed 
ab(mt  25  per  cent  comi)ared  with  what  it  was  six  years  ago.  The  cost 
of  the  i)roduction  of  the  articles  manufactured  by  same  comparison, 
both  in  wages  and  material,  is  some  less,  but  the  selling  price  is  corre- 
spondingly much  less.  The  total  present  aiul  possible  output  of  the 
vehicles  manufactured  conld  be  absorbed  by  the  domestic  market  if  the 
demand  and  price  of  farm  products  and  commodities  of  all  kinds  would 
assume  normal  conditions.  The  general  effects.of  the  rec'.i)rocity  treaty 
made  in  1890  certainly  were  favorable  to  the  export  trade  of  the  United 
States.  The  results  of  their -repeal  have  been  to  kill  in  its  infancy  a 
new  trade  that  had  just  been  established  before  it  had  been  properly 
tested  or  apiu-eciatecl  by  the  nations  that  had  entered  into  a  reci])ro('al 
treaty  with  the  I'nited  States.  I  favor  the  a])plication  of  recii)rocity 
])rin<;iples  to  all  future  tariff  legislation.  The  beuetit  of  reciprocity  to 
our  industry  may  not  be  materially  affected  directly,  but  iiulirectly  it 
will,  by  furnishing  a  better  market  for  the  American  products. 

There  is  no  reason  why  this  country  should  not  furnish  (Juba  and  the 
Latin- American  nations  with  all  of  their  coal,  meats,  cereals,  bread- 
stuff's, machinery,  and  manufactured  articles  that  they  do  not  produce, 
in  i)ayment  for  our  coffee,  sugar,  molasses,  hides,  and  other  articles  that 
we  purchase.  If  the  I'eciprocal  arrangements  made  in  1890  had  not 
increased  our  trade  and  decreased  foreign  trade,  the  chambers  of  com- 
merce of  Great  Britain  and  all  the  other  principal  cities  of  Europe  would 
not  liaA^e  petitioned  their  governments  to  place  them  in  position  where 
they  could  compete  with  this  new  American  competitor.  All  Euroj)e 
hate  American  competition  and  will  do  all  they  can,  by  every  means  in 
their  power,  to  prevent  America  from  extending  her  commerce  to  the 
other  nations  of  the  world. 

The  statistics  showing  the  increase  of  our  foreign  trade  with  the  Latin 
and  other  nations  that  had  commercial  treaties  with  the  United  States 
for  a  few  short  months,  and  the  decrease  in  the  exports  to  those  same 
countries  from  European  countries,  demonstrate  the  benetlt  to  be  deri  v<'(l 
by  having  recii)rocal  agreements.  The  resources  of  the  United  States 
are  greater  than  those  of  any  other  nation,  and  our  prosperity  should  be 
correspondingly  greater.  Keciprocity  is  nothing  more  nor  less  than  a 
business  proposition.  We  are  not  unlike  other  nations;  each  aims  to 
sell  her  manufactured  products  or  hersurplns  in  those  countries  where 
she  can  get  the  highest  prices;  on  the  other  hand  buys  her  commod- 
ities in  <!ountries  where  she  can  buy  them  the  cheapest  or  to  the  best 
advantage. 

There  are  certain  necessaries  of  life  that  even  with  all  the  diversified 
resources  and  climate  of  the  Uidted  States  we  do  not  and  can  not  i)ro- 
duce,  and  we  are  obliged  to  go  to  other  countries  for  them. 

We  are  a  nation  of  coffee  and  tea  drinkers  and  consume  a  great 
quantity  of  these  commodities,  also  far  more  sugar,  molasses,  hides, 
and  many  other  artich's,  than  we  (^an  produce;  on  the  other  hand,  we 
produce  in  this  country  meats,  cereals,  and  breadstutfs,  coal,  minerals, 
and  numerous  manufactured  articles  that  oth<ir  countries  can  not  or 
do  not  produce.    Keciprocal  arrangements  should  be  niade  with  all  of 


1 


•m 
I? 

X,: 

■<■■ 


i 


ill 


476 


RECIPROCITY    STATEMENTS. 


these  countrieH.  The  (Toveriiinent  sliould,  tlirongh  her  niiiiistors,  con- 
suls,  01-  even  throujih  i)aid  iigoiits  sent  into  foreij^n  coiintries,  endeavor 
to  create  a  hirgci"  deniiuid  for  American  products  in  those  countries. 
The  Government  should  make  the  best  commerciiil  bargains  for  tlie 
exchange  of  commodities  possible,  so  that  the  articles  we  are  (!om- 
jielled  to  import  may  be  paid  for  in  articles  we  can  ex])ort  It  will  be 
infinitely  better  to  thus  enlarge  our  production  and  create  greater  pros- 
perity in  this  country  than  to  send  our  gold  direct  to  ICurope  to  be 
dej)otiited  to  the  credit  of  these  countries  to  make  purchases  of  their 
supplies  that  they  should  buy  from  us. 

The  wealth  of  a  nat  ion  is  increased  by  the  products  that  come  from 
the  soil  and  the  mines  by  taking  the  raw  material  and  adding  to  it  the 
skill  of  human  labor  and  making  it  more  valuable.  This  being  the 
source  and  tlie  oidy  source  from  which  we  gather  our  wealtii,  it  is  tiie 
duty  of  the  legislative  powers  of  this  country  to  legislate  in  such  a 
way  as  to  deveh>p  and  foster  these  industries  above  all  others,  for 
when  the  husbandmen  lind  a  ready  market  and  obtain  good  prices  for 
their  wool,  ])ork,  beef,  grain,  hay,  and  products  of  the  soil,  and  the 
mines  i)roduce  minerals  profitably,  then  the  blast  furnaces  and  rolling 
and  steel  mills,  iron  industries,  and  manufactories  of  all  kinds  will  be 
working  full  time,  labor  will  be  in  demand,  and  all  lines  of  business 
will  llonrish  and  be  prosperous.  It  is  our  duty  to  elevate  the  laborer. 
We  are  a  nation  of  laborers,  and  it  is  the  duty  of  the  lawmaking 
power  to  bring  about  snvAi  legislation  as  will  keep  all  of  our  laborers 
steadily  emi)loyed,  and  throw  around  labor  such  protection  as  will 
shield  it  from  idlers  and  nonproducing  usurers.  Oneof  the  great  dilli- 
culties  at  the  present  time  is  tliere  are  too  many  idlers,  too  many  gam- 
blers, and  too  nniny  loafers  who,  through  syndicates,  trusts,  and  legis- 
lation favorable  to  them,  are  enabled  to  subsist  upon  the  products  of 
labor.  We  should  favor  all  organizations  that  call  men  together  by 
kindred  sympathies,  Avhich  lift  them  up  and  make  them  better.  On 
account  of  stagnation  and  depressed  conditions  of  business,  there  are 
to  day  millions  of  idle  workmen  in  this  great  country  and  many  more 
midions  that  are  sjjarsely  fed  and  clothed,  all  of  whom  could  find 
ready  and  profitable  employment  if  the  producers  of  this  country  could 
find  ready  and  profitable  markets  for  their  products.  The  Government 
has  each  year  aimed  to  encourage  immigration  to  the  West  by  throw- 
ing open  to  the  people  Indian  lands  and  reservations.  When  the  hus- 
bandmen are  compelled  to  sell  their  product  at  what  it  actually  costs 
to  i)rodu.ce  it,  or  at  a  loss,  there  is  very  little  encouragement  in  the 
direction  of  developing  new  territory. 

After  making  the  best  bargain  for  the  introduction  of  our  good.^  into 
foreign  countries  in  payment  for  the  goods  we  are  compelled  to  buy 
from  those  countries,  it  is  the  duty  of  the  Government  of  the  United 
States  to  imi)rove  our  merchant  marine  so  that  the  products  that  are 
])roduced  in  this  country  can  be  carried  to  foreign  ports  in  home-built 
A  merican  bottoms  and  under  the  Stars  and  Strii)es.  Other  nations  have 
subsidized  their  merchant  marines  througli  the  disguise  of  carrying  the 
mails.  France  pays  10  cents  per  barrel  bounty  upon  each  barrel  of 
flour  that  it  sends  into  some  of  the  foreign  countries.  Kussia,  Germany, 
England,  Fran<!e,  and  all  other  nations  legislate  for  the  best  interests 
of  their  peoi)le,  and  are  taking  care  of  themselves.  It  is  the  duty  of 
Congress  to  htok  out  for  America,  and  give  us  such  legislation  as  will 
be  for  the  benefit  of  the  greatest  nundier  of  our  i)eople. 

The  hist  Congress,  if  it  had  deliberately  set  about  to  cripple  and 
destroy  the  iudus  tries  of  this  couutry,  could  uot  have  done  it  more 


RECIPROCITY    STATEMENTS. 


477 


iters,  con- 
endeavor 
[!0U  11  tries. 
IS  for  the 
are  coui- 
It  will  be 
jiter  i)i()s- 
'ope  to  be 
s  of  their 

:onie  from 
f  to  it  the 
t)eiiig  the 
,  it  is  the 
111  such  a 
tliers,  for 
pric<;s  for 
I  and  the 
id  rolling 
Is  will  be 
'  business 
B  laborer, 
iwniaking 
•  laborers 
n  as  will 
;reat  diili- 
aiiy  gam- 
and  legis- 
oducis  of 
rether  by 
iter.  On 
there  are 
any  more 
ould  find 
try  could 
vernment 
)y  tbrow- 
the  hus- 
illy  costs 
it  in  the 

ood.^  into 

I  to  buy 

!  United 

that  are 

mie-built 

ions  have 

rying  the 

luirrel  of 

icrmany, 

interests 

e  duty  of 

>ii  as  will 

)ple  and 
it  more 


ellcctually.  Tliey  said  thn  "reciprocity  was  a  sham,"  and  made  a 
{general  crusiidc  against  industries,  which  has  resulte«l  in  a  great  htss 
of  trade.  Tlicy  even  went  so  far  as  to  try  to  destroy  our  navy  and  mer- 
chant marine  by  vetoing  and  oii^iosing  all  appropriations  to  iie  used  for 
this  pnri)ose.  'I'lu^  (Jovei  iimeiit  has  recently  mad*'  some  little  show  in 
attempting  to  improve  our  navy  and  merchant  marine  by  building  a 
few  new  vessels,  but  when  we8eethe<!0iiiparatively  few  vessels  tiiat  are 
sailing  uiion  the  ocean  under  the  Stars  and  Strii»es,  carrying  our  produ(;t, 
as  compared  to  tiiose  of  foreign  countries,  the  situation  is  ai)i»ailing. 
It  is  a  well-known  fact  tliat  merchant  marine  vessels  tl  at  have  been 
built  by  toreign  countries  have  been  constru<;te(l  with  their  dcicks 
strengthened  so  that  they  can,  at  a  very  little  exjiense  and  in  a  very  short 
time,  be  changed  from  marine  vessels  to  navy  vessels,  and  it  is  high 
lime  that  this  (lovernment  was  waking  up  to  some  of  these  facts  and 
improving  our  merchant  marine  in  a  sul>stantial  way. 

I  come  from  the  birthplace  of  the  Ifepublicau  party.  The  lirst 
liepublican  couNcntion  that  was  ever  held  in  the  United  States  was 
held  in  the  Town  Street  Methodist  (jhurch  at  ('oiumbus,  Ohio,  .July  i;5, 
18r)5,  and  was  presided  over  by  the  lion.  John  Sliermaii,  now  Senator 
from  our  State.  The  Kepublican  party  in  all  ot  its  past  history  has 
been  a  progressive  party,  u;:d  the  manufactiirtirs,  Imsiness  men,  labor- 
ing men,  and  farmers,  who  feel  the  depressed  condition  that  now  hangs 
over  this  once  prosperous  country,  are  looking  to  that  |)arty  for  relief, 
and  it  is  through  proi)er  reci]»rocal  treaties  with  other  nations  that  they 
exjiect  in  some  measure  to  obtain  it. 

The  Heimblican  party,  in  her  platlbrin  at  Minneapolis,  declared, 
among  other  things,  that  she  was  in  favor  of  recii)rocity,  and  the  peo- 
ple of  this  country  are  looking  to  that  party  to  redeem  this  as  well  as 
all  other  pledges  which  she  made  at  th  vt  time.  They  will  expect  the 
legislative  ])ower  that  is  now  in  control  of  the  (Tovernment  to  enact 
such  legislation  as  will  open  u[)  reciprocal  treaties  and  r<'estal»lish  those 
treaties  with  all  the  foreign  countries  that  had  once  entered  into  them 
with  us,  as  well  as  with  China,  .iapan,  and  many  other  nations  Ft  has 
been  said  by  some  of  the  Memberr,  of  the  House  that  it  will  do  no  good 
to  pass  a  recijirocal  law  in  the  ilouse  becaiuse  it  will  not  pass  the  Sen- 
ate, and  others  have  said  that  if  it  passed  the  Senate  it  would  be 
vetoed  by  the  President.  That  is  a  very  poor  excuse  for  declining  to 
pass  a  bill  of  that  kind  now.  The  Kepresenratives  of  the  Ilouse  have 
been  elected  fresh  from  the  people  and  in  their  i)latform  in  every  Con- 
gressional district  throughout  the  United  States  there  was  a  pledge 
made  to  the  people  that  one  thing  among  others  the  Republican  i)arty 
would  do  would  be  to  endeavor  to  restore  the  recijirocal  relations 
between  all  other  nations  as  far  as  jiossible;  and  the  people  took  them 
at  their  word.  They  carried  out  their  portion  of  the  contract  and  they 
now  come  to  you  and  ask  you  to  fullil!  yours.  Look  at  the  great  change 
that  has  taken  place  in  the  personnel  of  the  Ilouse  between  the  Fifty- 
third  and  Fifty-fourth  Congresses,  and  you  ask  why?  There  is  onify 
one  answer,  one  reply,  as  to  why  so  nmny  of  the  great  statesmen  who 
were  so  iirominent  in  the  last  Congress  have  not  been  returned  to  this, 
and  that  is  because  they  violated  their  obligations  to  the  people  and 
failed  to  keep  their  pnmiises.  Some  of  them  became  so  muddled  that 
they  really  forgot  who  the  people  were  that  sent  them  to  Washington; 
they  legislated  so  earnestly  in  the  interest;?  of  Great  liritain  that  Con- 
gress had  no  sooner  adjourned  than  they  took  the  lirst  ocean  steamers 
to  report  to  their  dukes,  lords,  and  the  Cobdeii  Club  to  receive  en(!omi- 
ums  at  tlieir  hands,  to  be  wined  and  dined  and  feasted,  and  the  result 


r 

■ 

1 

I 

1 

1 

1 

i 

1 

478 


RECIPROCITY   STATEMENTS. 


lias  Ixieii  tliiit  tliey  have  now  had  two  years — and  will  have  many 
more — to  look  after  their  long-neglected  business  interests  at  home. 
The  i)coi)le  have  sent  other  representatives  here  in  their  stead,  and  the 
time  lias  <'ome  for  yon  to  act,  and  the  time  is  short.  Even  if  it  should 
be  impossible  to  get  such  legislation  through  the  Senate,  or  if  it  should 
not  meet  the  approval  of  the  President  of  the  United  States,  it  is  your 
duty  to  show  to  the  p('oi)le  your  good  faith  in  trying  lo  bring  about  the 
legislation  that  tlui  people  want  and  believe  is  for  the  best  interests  of 
the  masses,  and  then,  but  not  till  then,  will  you  have  done  your  whole 
duty. 

Tlie  last  Kepublican  Adn?ini8tration  did  a  great  deal  to  exjiand  com- 
mercial relations  between  the  [TnitM  States  and  foreign  countries ;  they 
most  eil'e(;tually  did  away  with  the  hund)ug  of  keeping  American  meats 
out  of  foreign  i)orts  on  the  subterfuge  that  they  were  diseased. 

There  are  r),()()(>,00()  farmers  in  the  United  States,  and  with  their 
families  and  laborers  they  make  up  nearly  half  of  its  population,  and  a 
large  proportion  of  the  remainder  are  manufacturers  and  laboring  men. 
The  interests  of  these  classes  are  identical,  and  I  want  to  saj;  to  you, 
gentlemen,  that  if  the  legislation  of  this  country  is  derogatory  to  their 
interests  and  more  fav(»rable  to  others,  it  is  only  a  question  of  time 
M'luni  they  will  get  their  heads  together  and  confer  upon  these  matters, 
and  if  the  time  ever  does  come  arid  they  agree  upon  a  policy  and  put 
Ibrth  their  combined  efforts  for  what  will  be  to  the  best  interests  of  the 
masses  instead  of  the  classes,  they  will  control  the  legislation  of  this 
country,  either  with  or  without  the  money  power  and  syndicates  of  both 
Euro])e  and  America.  One  reason  why  this  subject  and  many  others 
are  being  so  thoroughly  discussed  to-day  is  because  of  the  unrest  and 
dissatisfaction  and  disgust  of  the  people  all  over  the  world  in  all  lines 
of  industries  and  in  j.ll  avenues  of  life.  There  is  something  wrong, and 
it  is  my  Judgment  and  my  lirm  belief  that  this  question  of  reciprocity 
is  only  one  cause,  and  that  a  very  small  part,  for  the  evils  and  difficul- 
ties that  exist;  and  1  hope  that  some  day,  in  the  not  far  distant  future, 
the  bankers,  manulVn'turers,  business  men,  farmers,  and  wage  workers 
of  this  country  will  be  invited  to  Washington  to  app6ar  before  a  com- 
mittee upon  the  nn)st  vital  and  all-important  question  before  the  world, 
and  that  is,  the  iinancial  question;  and,  if  I  may  be  i)ardoned,  I  wish 
to  say  juvstone  word  in  closing,  that  is,  that  that  question  must  be  taken 
up  very  speedily,  and  something  done  to  stop  the  continuous  squeezing 
and  declining  prices  of  commodities  of  all  kinds,  and  the  evil  remedied 
that  has  caused  all  this  great  depression,  stagnation,  and  strangulation ; 
relief  and  stability  of  prices  must  be  established,  which  can  orly  be 
done  by  protection,  reciprocity,  and  the  restoration  of  silver  to  its  former 
position  among  the  money  metals  of  the  world. 

The  Kepublican  i)arty  came  into  existence  because  of  the  oppression 
of  the  weak  nt  the  hands  of  the  rich  and  powerful,  and  by  its  right  and 
might  swept  slavery  from  the  land.  If  now,  untrue  to  its  early  princi- 
ples, it  abandons  the  60,000,000  of  people  suffering  under  bondage 
because  of  unjust  legislation  in  the  interest  of  the  classes  instead  of  the 
masses,  its  mission  will  be  ended  and  its  doom  sealed.  Another  party 
will  spring  into  existence,  another  Lincoln  will  arise,  and  the  people 
will  march  under  his  banner  to  liberty  and  i)rosperiiy. 

Many  of  our  great  statesmen  who  occupy  seats  in  the  halls  of  Con- 
gress to-day  will  be  no  more,  ami  the  epitaphs  on  their  tombstones  will 
relate  that  they  violated  their  pledges  to  the  peoxde,  were  untVi^liful 
to  the  trust  imposed  in  them,  and  that  they  bowed  down  to  trusts  and 
syndicates  and  worshiped  the  "golden  calf "  instead  of  practicing  the 
"golden  rule." 


ve  many 
[it  home. 
,  and  the 
it  .should 
it  should 
t  is  your 
tbout  the 
crests  of 
ur  whole 

and  com- 
ics; they 
lau  meats 
I. 

ith  their 
on,  and  a 
dng  men, 
y  to  you, 
y  to  their 
[1  of  time 
!i  matters, 
Y  and  put 
ats  of  the 
m  of  this 
es  of  both 
iiy  others 
nrest  and 
[1  all  lines 
r()ng,and 
M'iprocity 
(1  difficul- 
nt  future, 
3  ^vorkers 
•re  a  coni- 
ihe  world, 
id,  I  wish 
■,  be  taken 
([ucezing 
remedied 
ulation ; 
I)  orly  be 
its  former 

ppression 

right  and 

•ly  princi- 

boudage 

ad  of  the 

ler  party 

le  people 

s  of  Con- 
dones will 
inf-r"rilul 
rusts  and 
;icing  the 


RECIPROCITY    STATEMENTS. 
The  T.  T.  Haydock  Carriage  Company^  Cincinnati^  Ohio. 


479 


II 


2.  The  manufacture  of  light  vehicles. 

3.  Uouth  America,  South  Africa,  Central  America,  Turkey,  Australia, 
Mexico. 

4.  Yes;  with  South  America,  by  mailing  catalogues  direct  on  a  list 
of  dealers  we  had,  but  with  poor  success;  at  least  we  could  not  see 
any  direct  results. 

5.  We  are  not  aware  of  any. 

(5.  Most  of  our  export  business  being  done  through  New  Yoik 
exporters,  we  have  not  kept  track  of  the  tariff's. 

7.  This  we  also  leave  for  thiJ  direct  exporter  to  auKwer. 

8.  Our  export  business  has  not  exceeded  $5,000  ])er  annum  atiy  y^ar. 
0.  Prices  somewhat  less;  nniterial  has  also  been  reduced. 

10.  None  that  we  know  of,  as  we  dcm't  believe  that  any  other  foreign 
market  prodnijcs  vehicles  and  gives  as  much  for  the  money  as  Cincin- 
nati manufacturers. 

13.  Yes. 


Tlie  Dash  and  Carriage  Ooods  Oomva/n/y^  OinmnnaU^  Ohm, 

2.  Manufacturers  of  carriage  trimmings. 

3.  Have  orders  in  small  quantities  from  South  Africa,  Australia, 
New  Zealand,  and  Venezuela. 

4.  Yes;  principally  by  advertising  in  publications  of  New  York  and 
IJoston  commission  houses,  in  the  countries  named,  and  other  South 
American  States;  success  quite  limited. 

5.  We  are  not.  Our  information  is  too  limited  to  give  an  intelligent 
answer. 

6.  We  do  not  know. 

7.  We  do  not  know. 

8.  About  20  per  cent  more. 

9.  Some  of  our  products  are  higher,  others  lower,  due,  we  think,  more 
to  local  causes. 

10.  We  do  not  know. 

11.  So  far  as  our  knowledge  extends,  we  have  in  foreign  countries  no 
competition  which  we  are  not  fully  able  to  meet  successfully. 

12.  We  can  only  state  from  observation,  bearing  upon  our  business 
indirectly  only,  that  under  the  treaties  of  reciprocity  the  export  trade 
of  this  country  was  decidedly  increased  and  vitalized,  our  goods 
being  represented  mainly  in  the  export  of  carriages  in  a  finished  state, 
rather  than  exported  for  use  in  carriage  construction  abroad.  We 
think  the  repeal  of  these  treaties  materially  curtailed  the  export  trade 
in  carriages. 

13.  We  do  most  emphatically.  Protection  with  reciprocity  will  give 
a  wonderful  impetus  and  development  to  exports  and  extension  of  trade 
relations  with  foreign  countries. 

We  have  stated  that  our  volume  of  trade  has  increased  the  past  six 
years,  which  can  be  fully  accounted  for  by  the  domestic  growth  of  the 
carriage  trade  in  a  country  that  progresses  in  sjjite  of  untoward  con- 
ditions and  whose  necessities  are  naturally  increasing. 


■  ')' 


''II 


■  .  ri 


-I 


ri 


i,     ; 


.    ,1 


480 


RECIPKOCTTY    STATKMENT8. 


ill 


3  5    li 


Sheffield  Car  Company,  Three  Elvers,  Mich. 

Answerir  '  your  comnuiTii cation  of  March  4,  which  presflure  of  other 
mjilters  has  <lc]ayc(l,  would  say  tliat  the  work  of  this  conii)aiiy  is  cou- 
tiiiL'd  to  light  car.s;  this  covers  car «  for  railway  repair  work,  such  as 
hand  cars,  push  cars,  and  velocipede  cars,  also  cars  for  miuiug  aud 
plantation  \>'ork,  luinberinj''  operations,  and  contractors'  cars  for  all  sorts 
of  (;onstructioii  work.  Wc  have  a  very  large  line  of  designs  and  operate 
the  largest  fivctory,  we  believe,  in  the  world  devoted  exclusively  to  this 
line  of  business. 

We  have  received  a  good  deal  of  business  from  the  following  foreign 
countries;  Cuba,  Austria,  and  Australia,  with  considerable  number  of 
orders  from  Mexico,  the  various  States  of  Central  and  Soutl*  Anieri<'a, 
and  a  numi)ei'  of  the  countries  of  l*]uroi)e.  We  liave  made  some  elVort 
to  extend  our  foreign  trade,  issuing  a  catalogue  in  several  difl'erent  lan- 
guages and  having  a  regular  representative  in  London.  Our  f(u-eign 
business  has  in  conseqiicnce  incieased,  we  believe,  nearlj  every  year 
since  the  esaiblishment  of  this  company  fifteen  years  ago.  We  do  n„t 
know  of  any  dis(Mimination  which  would  int<rfere  with  the  extension 
of  our  business,  and  have  not  usually  felt  the  restrictions  of  protective 
taritt's  which  exist  in  many  of  tiiese  countries.  None  of  the  countries 
produce  goods  in  our  ]),a  iicular  line  that  are  eciual  to  ours  in  point  of 
convenience,  lightness,  and  durability,  so  that  these  articles  are  fre- 
quently si)  ipped  long  distances.  We  presume  the  protective  tariffs  have 
sometimes  reduced  our  ti-ade  with  some  of  these  countii<'s,  [)articularly 
some  of  the  countries  of  Australia,  (Jermany,  and  Canada,  but  we  have 
not  materially  reduced  our  prices  in  consequence,  the  consumer  there 
having  to  pay  more  for  the  goods  if  he  bought  them. 

We  are  not  sulliciently  familiar  with  the  changes  of  tarilfsin  foreign 
countries  to  be  able  to  give  any  ii  •  ^ligent  expression  of  opinion  in 
regi-.rd  to  this  point,  and  are  unable  to  say  to  what  exte/it  tie  removal 
of  tarifVs  in  force  by  foreign  countries  would  ext'end  our  tn.de.  As 
indicated  above,  it  x)robabIy  would  be  of  some  assistance.  The  volume 
of  our  general  business  is  (loubtlcss  larger  than  that  of  six  years  ago; 
the  foreign  business  certainly  has  increased  and  the  domestic  business 
has  in  the  main  held  its  own  in  spite  of  the  general  trade  depression. 
There  have,  of  course,  been  times  when  our  business  was  much  reduced, 
owing  to  general  depression  in  t'.ade,  but  our  business  has  not  sutfercd. 
more  than  others  in  this  particular.  Selling  prices  are  very  considerably 
loN.er  than  tli<'y  were  six  years  ago. 

Foreign  couqietitors  liave  advantages  over  us  in  the  way  of  direct 
transportation  to  South  American  ports,  by  reason  of  the  fact  that  we 
have  sometimes  had  to  shii»  to  England  to  reach  these  countries,  and 
we  have  always  felt  that  money  could  be  expended  in  no  nn^re  protitabio 
way  for  the  development  of  American  trade  than  by  the  subsidizing  of 
steamshi})  lines  foi  South  and  ('enti'al  America.  We  sui)pose  labor 
gives  our  foreign  competitors  advantages  over  us,  but  these  are  largely 
overcome  by  impioved  appliances  and  methods  of  numufacture.  For 
these  reasons  v»^e  have  always  felt  that  we  were  able  to  compete  on  a 
fair  basis  witli  foreign  manufacturers  in  our  own  line. 

We  are  not  very  familiar  with  the  elTect  of  the  reci[>rocity  treaties 
that  were  made  some  years  arr'^  an<l  their  rei)eal  on  business  interests 
generally.  We  believe  un  only  country  m  which  we  were  afll'ected 
dire(  tly  was  that  of  Cuba,  but  can  give  no  very  clear  details.  Our 
representatives  there  stated  to  us  that  when  the  reciprocity  treaty  with 
Cuba  went  into  effect  they  would  be  able  to  secure  more  liberal  orders, 


are  of  otlier 
|>aiiy  ip  cou- 
)rk,  such  iia 
mining  and 
for  all  sorts 
and  operate 
vely  to  this 

ing  foreign 
!  num'oor  of 
li  America, 
some  elfort 
ft'erent  lan- 
)iir  foreign 
every  year 
We  do  nut 
*  extevisiou 
protective 
e  countries 
iu  point  of 
ea  are  fre- 
ariffs  have 
articularly 
at  we  have 
imer  there 

I  in  foroign 
opinion  in 
le  removal 
iri.de.  As 
he  volume 
^ears  ago; 
c  business 
epression. 
\\  reduced, 
)t  suffered 
isiderably 

'  of  direct 
't  that  we 
tries,  and 
profitable 
lidizing  of 
•ose  labor 
re  largely 
uro.  For 
pete  on  a 

y  treaties 
interests 
5  afl'ectecl 
ils.  Our 
caty  with 
il  orders, 


RECIPROCITY  STATEMEL^TS.  431 

the  reciprc-ity  principle,  if  gS  a  vvidpS  1  ^  '^  """^  i^'prossion  that 
where  ;,his  .an  be  done,  would  gi^rivbenpfit""^'^/"""^^^  application 

We  have  i;o  doubt  that  the  TTroti,L«  i^^^  trade, 

as  It  affects  the  business  inteS^oftlf^^^     P^^nciple  is  right  so -ir 
goods  which  the  couiiirv  can  m  S  ?!.  ^^  ""f  """^  ^^^^^^  country,  as 
pcoduced  at  home.    Tie^ain^u  t  o?  kborth'^  '^'^'^?t^  ^^^^^'"'^  ^' 
facturing  certainly  increasesthe  consumnt  in  J'  kept  busy  iu  mauu- 
that  are  produced  in  any  coir:trrar^  w  f/ ^^"^^^tural  products 
the  foundation  of  prosperity  of  anv  n^  In't ..      '"*,  ^"e«<^'«»  but  that 
perrty  of  the  agriciltu4l  clLsa.     Afte^i  r  L^^""         "P"''  "'^  ^''''- 
taritt  protection  can  doubtless  be  wise! vrlr^.^^'  '-r^^"  established 
gradual,  so  as  not  to  greatly  dishirb^Sf^"''^^,'.'^  *^^«  reduction  is 
H.  Eep.  2263— -31  ^"^  conditions. 


MISCELLANEOUS. 


OIRCULAE  OF  INQUIRY  TO  MANUFACTURERS. 

Committee  on  Ways  and  Means, 

House  of  Repkesentatives, 
Washington,  D.  C,  March  4,  1896. 

Sm:  In  o^'^ler  that  they  may  give  more  intelligent  consideration  to 
l>en(ling  and  i)roposed  legislation,  the  subcoiiunittec  of  the  Coniniittee 
on  Ways  and  Means  of  the  Honse  of  Representatives  in  charge  of  bills 
relating  to  reciprocity  arrangements  and  commereial  treaties  would  be 
greatly  obliged  if  you  would  forward  them,  at  your  earliest  conven- 
ience, your  views  and  suggestions,  and  such  infornuitiou  as  you  are 
able  to  furnish  upon  the  following  points,  namely: 

1.  Give  full  name  and  address  of  firm  or  company. 

2.  Lines  of  manufacture. 

3.  Amount  of  capital,  number  of  persons  employed,  and  value  of 
annual  product. 

4.  Do  you  find  your  market  at  liome  or  abroad,  and,  if  both,  in  what 
proportion? 

6.  Do  you  sell  direct  to  foreign  dealers  or  through  commission  houses? 
0.  Have  you  made  any  direct  eflbrt  to  extend  your  foreign  trade; 

and  if  so,  by  what  meauh,  with  what  success,  ami  in  what  <  ountries? 

7.  Are  you  aware  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  prevent  the 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  means  by 
which  they  may  be  removed? 

8.  What  changes  have  recently  occurred  in  the  tariffs  of  foreign 
countries  so  far  as  they  I'clate  to  your  lines  of  nnniufacture? 

9.  How  far  ^^oul(l  the  removal  or  reduction  of  the  customs  duties 
imposed  by  foreign  nations  upon  the  merchandise  in  which  you  deal  aid 
in  the  extension  of  your  ex])ort  trade? 

H).  What  is  the  output  of  your  establishment  compared  with  that  of 
six  years  ago? 

11.  How  does  the  present  cost  of  production  compare  with  that  of 
six  years  ago;  including  wages,  the  cost  of  raw  material,  and  transpor- 
tation rates  by  sea  and  land? 


ago! 


How  do  present  selling  prices  compare  with  those  of  six  years 


13.  What  competition  do  you  meet  with  from  foreign  manufacturers, 
and  in  what  niarkets? 

14.  What  advantages  do  your  foreign  competitors  have  over  you 
in  the  cost  of  manulacture  and  in  transportation  charges  to  foreign 
markets? 

15.  To  what  extent  can  you  compete  with  foreign  manufacturers  in 
quality  and  prices? 

182 


!}KS. 


VES, 

k  4,  1896. 

deration  to 
Committee 
rpe  of  bills 
IS  would  be 
}st  couveii- 
as  you  are 


id  value  of 
)tli,  in  what 

ion  bouses? 

eijii.  trade; 
untries? 

tbo  laws  or 
revent  the 
means  by 

of  foreign 

oms  duties 
ou  deal  aid 

nth  that  of 

ith  that  of 
lI  transivor- 

six  years 

lufacturers, 

over  you 
to  foreign 

licturers  in 


RECIPROCITY    STATEMENTS. 


483 


16.  Has  the  total  product  of  the  United  States  in  your  line  of  manu- 
facture increased  or  decreased  during  the  last  six  years? 

x'l.  What  jiroportion  of  the  total  i)resent  and  possible  output  in  your 
lines  of  manufacture  in  the  United  States  can  be  absorbed  by  the 
domestic  market;  and  what  would  be  your  estimate  of  the  natural 
surplus  for  export  if  all  mauufiicturers  in  your  lines  were  producing  to 
their  full  capacity?  (The  ])urpose  of  this  inquiry  is  to  secure  as  a<Hui- 
rate  an  estimate  as  possible  of  the  necessity  for  new  foreign  markets 
to  the  manufactureis  of  the  United  States.) 

18.  Was  the  general  effect  of  the  reciprocity  treaties  made  iu  1890 
favorable  or  unfavorable  to  the  export  trade  of  the  United  States,  and 
what  was  the  effect  of  their  repeal? 

19.  What  was  the  effect  upon  farm  products  i)articularly  ? 

(If  your  replies  to  inquirif^s  17  and  18  are  based  upon  actual  experi- 
ence, please  give  details  as  ally  as  possible.) 

20.  ])o  you  favor  the  application  of  the  reciprocity  princii)le  to  future 
tariff'  legislation,  and  the  enactment  of  a  general  law  authorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible? 

These  inquiries  have  been  forwarded  to  several  hnndrcd  persons, 
firms,  and  corporations  who  are  engaged  in  the  manufacture  of  various 
lines  of  merchandise  that  enter  into  the  exj)ort  trade,  and  the  replies 
are  intended  for  publication  witli  a  report  which  the  Committee  on 
Ways  and  Means  will  make  to  the  House  of  Kepresentatives;  but,  if 
so  desired,  any  information  received  will  be  regarded  as  confidential. 
All  values  should  be  exi)ressed  in  United  States  gold,  and  all  quantities 
in  our  weights  and  measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  inquiries  will  be  appreciated. 
I  am,  sir,  your  obedient  servant, 

A.  J,  Hopkins,  Chairman. 


EBPLIES. 
Etoirah  Iron  Company,  CartersvUle,  Oa. 

The  propertj^  of  our  company  lies  in  Bartow  and  Cherokee  counties, 
north  Georgia.  It  is  largely  a  manganese  property,  but  owing  to 
unfavorable  tariff  legislati»)n  in  the  taking  off  of  i.nport  duty,  we  liave 
had  to  close  our  mines,  and  they  are  not  now  in  operation. 

We  are  disposed  to  favor  the  reciprocity  principle  iu  future  tariff 
legislation  as  suggested  in  your  twentieth  query. 


Miller  Lock  Company,  FranTcfonl,  FhiLidelphiay  Pa, 

2.  Lock  manufacturers. 

3.  Capital,  *100,()00.    Employees,  120. 

4.  Home,  80i»er  cent;  foreign,  20  per  cent. 

5.  Direct  to  Canada.     Elsewhere  through  conimissioil. 
G.  By  advertising,  but  this  don't  pay. 

10.  Double. 

11.  Ijabor  5  per  cent  less  now.    Material  18  per  cent  less  now. 

12.  One-third  to  one-half  lower  now. 


:ii 


484 


RECIPROCITY    STATEMENTS. 


13.  Clienper  labor.  Better  facilities  for  reaching  into  foreign  markets. 
Clieaper  traiispoi'tation  for  exj)ort. 

14.  For  the  most  i)art,  American  locks  are  quite  different  in  design 
from  those  made  in  Europe  and  China.  America  does  not  attempt 
to  copy  the  foreign  patterns,  but  offers  American  patterns  almost 
exclusively. 

This  i)lan  is  tedious,  but  conservative.  The  other  plan  would  be 
impracticable,  owing  to  cheaper  foreign  materials,  labor,  money,  trans- 
portation, etc. 

The  Amcric!an  plan  uses  tl»e  foreign  markets  as  an  outlet  for  overpro- 
duction. If  25  per  cent  of  American  locks  could  be  exported  at  lowest 
home  prices,  our  factories  coukl  run  full  at  fair  profits. 

American  prices  of  locks  are  low  enough  in  cost  to  compete  abroad. 
Our  designs  are  such  as  admit  of  the  applicr.tion  of  duplicating  processes 
of  construction  tliat  are  not  appreciated  by  foreign  manufacturers. 

We  lack  facilities  for  export.  We  should  have  parcels-post  treaties 
with  all  nonmanufacturing  countries.  We  should  have  lists  of  the  deal- 
ers in  all  countries  whose  trade  we  covet. 

The  r>urcau  of  American  ltei)ublics  could  not  use  the  public  funds  to 
better  purpose  than  by  preparing  and  correcting  for  a  period  of,  say,  10 
years  lists  of  South  American  and  other  foreign  traders,  such  as  Brad- 
street  and  Dun  issue  for  the  United  States  and  Canada.  After  our 
inter(;ourse  becomes  active,  private  enterprise  would  relieve  the  bureau 
of  continuing  such  labor. 

With  available  lists  of  classified  trade  and  parcels-post  facilities  for 
showing  up  sami)les,  the  American  producer  could  quickly  introduce 
his  products,  and  the  trafiic  would  follow  through  api)ropriate  chan- 
nels— commission  houses  and  shippers. 

We  believe  the  above  is  tlie  cheapest  solution  of  the  existing  problem 
as  to  how  to  capture  the  trade  of  nonmanufacturing  countries. 

17.  The  United  States  couid  soon  supply  markets  of  the  whole  AV^est- 
ern  Continent  at  prices  as  low  as  now  prevail  in  South  America.  We 
lack  facilities,    lieciprocity  would  aid  us  much. 

18.  Favorable. 

Repeal  killed  the  trade  save  where  American  goods  had  accpiired 
special  favor  aided  by  a  trailic  that  remained  largely  against  the  United 
States,  e.  g.,  Brazil. 

20.  A  reciprocity  treaty,  to  aid  us,  must  put  us  on  a  par  with  Europe. 
We  want  no  recii)rocity  with  Europe.  Eeciprocity  should  result  in  let 
ting  in  free  raw  materials  that  do  not  compete  with  United  States 
produ'^ts  and  in  letting  out  manufactured  goods  that  are  intended  to 
displace  lOuropean  products.  Such  exchanges  should  be  regulated  by 
a  commission  or  a  bureau  of  the  Treasury  Department. 

MiLLRR  Lock  Company,  Philadelphia,  Pa. 

We  respectfully  ask  you  to  consider  the  following  propositions,  viz: 

(a)  That  a  parcels-i)Ost  agreement  between  nonmanufacturing  coun- 
tries and  the  United  States  would  inure  to  their  mutual  benefit. 

(/>)  That  producers  and  merchants  could  then  mail  samples  of  a  large 
variety  of  products,  quote  prices  current,  and  thus  effectually  introduce 
their  goods  at  small  cost. 

(c)  Aided  by  the  Bureau  of  American  Republics  and  by  private 
enterprise,  lists  of  traders  in  various  lines  would  soon  become  available 
throughout  Latin  America. 

(rf)  Such  ail  arrangement  would  be  reciprocity  itself.  It  would  open 
the  way  for  thousands  of  small  producers  to  begin  operations  where 


n  markets. 

,  iu  design 
)t  attempt 
lis  almost 

would  be 
ney,  traus- 

or  overpro- 
d  at  lowest 

ete  abroad. 
<;■  processes 
tiirers. 
ost  treaties 
of  tlie  deal- 
lie  funds  to 
il  of,  say,  10 
uh  as  Brad- 
After  our 
the  bureau 

tacilities  for 
y  introduce 
H'iate  chan- 

ing  problem 
ies. 

vhole  West- 
lerica.    We 


id  accjuired 
the  United 

itli  Europe, 
t'sult  in  let 
ited  States 
intended  to 
jgulated  by 


i^itions,  viz: 
luring  coun- 
lielit. 

tss  of  a  large 
[y  introduce 

by  private 
le  available 

I  would  open 
bions  where 


RECIPROCTTY    STATEMENTS. 


485 


little  can  be  done  under  present  conditions  except  by  traveling  sales- 
men, whose  expenses  utterly  prevent  their  going  except  for  a  few  of 
the  largest  interests. 


The  Peck-  Williamson  Heating  and  Ventilating  Company,  Cincinnati,  Ohio. 

4.  Not  to  any  great  extent. 

5.  We  are  barred  from  competition  by  the  duty,  which  on  iron  east- 
ings is  about  30  cents  per  hundred.  Foreign  manufacturers  can  there- 
fore underbid. 

7.  Aid  very  much. 

8.  Six  times  greater  in  the  United  States. 

9.  About  12  ])er  cent  lefc.s. 

10.  Advantage  of  duty  only.     We  could  stand  the  extra  freight. 

11.  See  No.  10. 

12.  Have  no  actual  experience. 

13.  Yes. 

Our  information  is  that  we  could  compete  in  price  and  greatly  extend 
our  trade  in  foreign  countries  were  it  not  for  the  duty. 

>Ve  do  not  believe  the  removal  of  the  duty  would  be  harmful  to  our 
own  workmen  on  account  of  importation  of  a  foreign  product,  for  we 
are  now  manufacturing  our  special  lines  enough  cheaper  than  the  same 
goods  could  be  manufactured  abroad  to  enable  us  to  compete  with 
them  on  an  equal  footing  after  paying  the  freight. 


The  Werner  Company,  Chicago,  III.,  and  Akron,  Ohio. 

2.  Publishers  and  manufacturers,  lithographers,  electrotypers,  etc. 

3.  Nearly  all  foreign  countries  except  Kussia.  In  Russia  the  duties 
and  restrictions  on  our  publications  are  prohibitory,  practically,  and  it 
is  almost  impossible  to  take  the  plates  into  Kussia  and  do  the  manu- 
facturing tliere,  for  the  same  reasons. 

4.  We  have  extended  our  foreign  trade  as  rapidly  ai^  possible,  but 
have  found  it  more  to  our  advantage  to  manufacture  our  books  that  v/e 
sell  in  foreign  countries  either  in  Germany  or  in  Englaiid.  There  is 
jmictically  free  trade  on  books  with  all  countries,  excei»tinj;-  the  United 
States,  Canada,  liussia,  and  France. 

5.  We  know  of  no  special  discrimination  in  any  country  outside  of 
Kussia. 

0.  We  know  of  no  recent  changes  in  tariffs  referring  to  our  line  of 
goods. 

7.  We  would  be  able  to  do  a  very  large  business  in  Russia  and  Can- 
ada if  it  were  not  for  the  customs  duties.  In  Kussia  they  have  other 
restrictions,  such  as  governmental  inspection,  etc.,  which  prevent  our 
doing  business  in  that  country  fully  as  much  as  the  duties  imposed. 

8.  We  have  been  doing  business  in  foreign  countries  for  the  past 
three  years  only. 

1).  llow  do  present  selling  prices  compare  with  those  of  six  yefirs  ago? 
In  some  lines  there  are  no  changes  and  in  others  a  reduction  of  10  to 
25  per  cent. 

10.  What  advantages  do  your  foreign  eomi>etitors  have  over  you  in 
the  cost  of  merchandise  and  iu  transportation  charges  to  foreign  mar- 


1  I 


486 


RECIPROCITY   STATEMENTS. 


I 


^hB 


l  I 


kets?  On  acconnt  of  the  customs  duties  in  this  country,  ontei'ing  into 
everything  used  in  the  nuinuf'acture  of  a  book,  an<l  us  it  is  stated  tluit 
this  tariff  increases  the  wages  paid  for  hibor,  German  and  English 
manufacturers  have  a  large  advantage  over  us,  as  they  purchase  their 
raw  materials  for  less  and  their  labor  is  cheai)er.  We  are  not  [uepared 
to  state  whether  or  not  the  tariff  compels  us  to  pay  higher  wages  than 
are  paid  over  there,  but  the  fact  remains  that  they  obtain  their  labor 
for  much  less  than  we  do,  and  as  tueir  raw  materials  cost  them  much 
less,  labor  entering  into  these  also,  they  are  able  to  manufacture  the 
same  articles  considerably  cheaper.  England  also  has  a  large  advan- 
tage over  us  in  transportation  charges  to  Australia,  Africa,  India,  in 
fact  to  all  European  points,  and  to  many  South  American  points. 

11.  We  believe  the  quality  of  our  output  is  superior  to  most  of  the 
foreign,  but  the  cost  of  i)roduction  in  this  country  is  greater  on  any 
given  article. 

12.  We  believe  the  reciprocity  treaties  of  1890  were  beneficial,  but 
we  had  no  active  experience  under  them. 

13.  We  heartily  favor  reciprocity  as  a  principle. 


Be  Butts  &  Daggett,  Boston,  Mass, 

We  favor  the  enactment  of  a  general  law  authorizing  the  President 
to  negotiate  reciprocity  treaties  with  European  and  American  nations 
so  far  as  possible. 

Under  former  reciprocity  treaties  the  fish  business  was  in  a  most 
prosperous  condition.  Eeciprocity  would  very  much  increase  the  export 
trade  in  fish. 


Kurzman  Bros.,  New  York. 

We,  in  our  export  trade  to  West  Indies  and  South  America,  find  our- 
selves unable  to  increase  our  trade  in  many  countries,  such  Jis  Brazil, 
foi  example,  owing  to  the  great  prejudice  against  American  butter 
existing  in  those  countries. 

For  quite  a  number  of  years  oleomargarine  was  exported  from  the 
United  States  under  the  name  and  guise  of  United  States  butter.  This 
made  the  South  American  merchant  and  consumer  suspicious  that  even 
the  well-known  United  States  brands  of  butter  were  also  adulterated. 

Happily,  since  January  1,  189G,  the  United  States  Treasury  Depart- 
ment compels  all  oleo  to  be  branded  a  ^  such. 

But  the  damage  to  the  reputation  and  prestige  of  American  butter 
has  been  done,  and  we  have  spent  thousands  of  dollars  sending  our 
pure  butter  to  South  American  countries,  trying  to  supplant  the  Euro- 
pean butter  so  largely  used  there. 

Our  finest  creamery  butter,  even  though  acknowledged  to  be  good  by 
the  merchants,  is  unsalable  except  at  a  heavy  sacrifice,  just  because  it 
is  American  butter. 

By  having  "reciprocity"  with  these  South  American  countries  we 
would  be  in  a  better  position  to  successfully  supplant  the  European 
butter. 

Reciprocity  for  five  yeqtrs  would  oi)en  all  of  the  markets  on  the  West- 
em  llemisphere  to  United  States  butter. 


eriiig  into 
:tite(l  that 
I  l<iiijilisli 
base  tlieir 
,  [ucpared 
a^tvs  than 
heiv  labor 
lem  iiuich 
icture  tho 
■go  advan- 
,,  India,  in 
)ints. 

lost  of  the 
;er  on  any 

Bflcial,  but 


»  President 
;an  nations 

in  a  most 
i  tlie  export 


!a,  find  onr- 
as  Brazil, 
ican  butter 

I  from  the 
tter.  This 
s  that  even 

.dulterated. 

iry  Depart- 

ican  butter 
ending  our 
t  the  Euro- 
be  good  by 
because  it 

mntries  we 
European 

the  West- 


RECIPKOClTY    STATEMENTS. 


International  Food  Gonq)any,  Minneapolis,  Minn. 


487 


Nearly  all  our  trade  is  home  trade.  We  have  shipped  some  ^oods 
into  Canada,  but  the  25  per  cent  duty  is  almost  prohibitory. 

Our  business  in  1895  (loubled  over  1893,  and  for  the  three  months  of 
1890  it  has  shown  an  extraordinary  increase  over  the  same  months 
of  1895. 

The  cost  of  putting  up  our  goods  is  about  the  same  as  it  was  six 
years  ago.  We  use  a  large  amount  of  roots  and  herbs,  which  are 
imported  from  France  and  Switzerland,  and  a  reduction  in  the  duty  on 
these  articles  would,  of  course,  be  beneficial  .'o  our  business. 

England  and  Canada  put  uj)  a  good  deal  of  stock  food,  which  is  our 
principal  product,  but  competition  from  foreign  manufacturers  in  our 
line  is  very  slight  in  this  country.  Whether  this  is  on  account  of  tlio 
duty  they  would  have  to  pay  or  for  other  reasons  we  are  unable  to 
state.  We  do  not  think  foreign  manufacturers  have  any  advantage 
over  us  in  the  cost  of  mauufiutturing  stock  food,  etc. 

In  regard  to  total  product  in  the  United  States  of  goods  manufac- 
tured in  our  line  as  compared  with  the  past,  will  say  we  are  sure  it  has 
more  than  doubled,  although  we  can  not  furnish  statistics  to  prove  our 
statement. 

We  can  not  give  any  definite  figures  in  regard  to  the  i)ossil)le  output 
of  our  line  of  goods,  nor  of  the  proportion  tliat  will  be  absorbed  by  the 
domestic  market,  but  our  impression  is  that  manufacturers  of  our  line 
in  the  United  States  could  supjdy  the  world  if  they  were  called  on  to 
do  so. 

The  reciprocity  treaties  of  1890  were  favorable  to  the  exjiort  trade  of 
our  goods.  We  believe  the  repeal  of  the  reciprocity  treaties  had  a  cer- 
tain amount  of  effect  in  lowering  the  prices  of  farm  products. 

We  most  certainly  favor  the  application  of  reciprocity  principles  to 
future  legislation,  and  believe  it  would  increase  the  general  prosi)crity 
of  this  country.  While  it  would  enable  us  to  increase  the  volume  of 
our  business,  we  realize  that  the  effect  would  be  very  much  greater  in 
such  lines  as  fiour,  etc. 

We  furnish  emi)loyinent  to  about  GO  people.  The  present  volume  of 
our  business  will  average  about  $.')00,000  per  year,  and  is  growing 
rapidly. 

We  realize  that  our  answers  are  not  as  definite  as  they  should  be,  but 
they  are  the  best  we  are  able  to  give  on  account  of  lack  of  definite 
statistics. 


Wm.  Bcc]{€r  Leather  Company,  Milwaukee^  Wis. 

2.  Mjinufacturers  of  leather. 

3.  Eight  hundred  and  seventy-five  thousand  dollars;  400  persons 
employed. 

i.  Market  at  home  as  well  as  abroad.    Shipments  abroa<l  about  one- 
sixth  of  annual  product. 

5.  We  sell  direct  to  foreign  dealers  and  also  to  commission  houses. 
.  0.  We  have  tried  to  extend  our  foreign  trade  through  correspondence, 
with  fair  sucrcess,  in  Kiigland,  France,  and  Germany. 

7.  We  are  not  aware  of  any  discrimination  or  obstacles  in  the  lawti 
of  any  foreign  country  lo  prevent  the  extending  of  our  trade. 

8.  We  do  not  know  of  a'.iy  changes  in  the  taritl'sof  foreign  countries 
relating  to  our  line  of  manufacture. 


.'«■ 


488 


RECIPROCITY   STATEMENTS. 


9.  There  is  no  duty  imposed  by  England  upon  our  product.  In 
France  and  Germany  the  removal  of  a  moderate  duty  paid  now  might 
increase  our  exports  to  those  countries. 

10.  Our  output  at  present  compared  with  that  of  six  years  ago  is 
about  200  per  cent  larger,  the  plant  having  been  rebuilt  and  the  capital 
doubled. 

11.  The  present  cost  of  production  compared  with  that  of  six  years 
ago  in  regard  to  wages  is  about  20  per  cent  lower.  Transportation 
rates  by  land  and  sea  are  about  the  same.  The  cost  of  raw  material 
to  day  is  20  per  cent  higher  than  six  years  ago. 

12.  The  selling  prices  compared  with  those  of  six  years  ago  are  about 
20  per  cent  lower. 

13.  The  competition  we  meet  with  from  foreign  manufacturers  is  in 
foreign  markets  only.  With  the  exception  of  patent  leathers  there  is 
but  little  foreign  leather  sold  here. 

14.  The  main  advantage  foreign  manufacturers  have  over  us  in  the 
cost  of  manufacture  lies  in  cheaper  wages. 

15.  We  can  successfully  compete  with  foreign  manufacturers  both  in 
regard  to  quality  and  prices. 

16.  The  total  product  of  the  United  States  in  our  line  of  manufiic- 
ture  has  greatly  increased  during  the  last  six  years. 

17.  About  two-thirds  of  the  total  present  output  in  our  line  of  manu- 
facture can  be  absorbed  by  the  domestic  market.  Were  all  the 
manufacturers  in  our  line  working  their  full  capacity  we  think  the  pro- 
portion would  be  about  three-fourths. 

18.  We  notice  no  elfect  of  the  reciprocity  treaties  made  in  1890,  nor 
did  their  repeal  make  any  apparent  difference. 

20.  We  favor  the  application  of  reciprocity  principles  to  future  tariff' 
legislation,  and  the  enactment  of  a  general  law  authorizing  the  Presi- 
dent to  negotiate  reciprocity  treaties  for  both  European  and  American 
uaiions,  so  far  as  possible. 


The  National  Cash  Register  Company,  Dayton,  0M6, 

2.  Manufacturers  of  cash  registers. 

3.  Canada,  England,  Norway,  Sweden,  Denmark,  Holland,  Belgium, 
France,  Austria,  Italy,  Germany,  liussia,  Australia. 

4.  We  have  extended  our  foreign  trade  to  these  countries  by  means 
of  agents  acquired  in  those  countries  and  educated  by  men  sent  out 
from  this  country  for  that  purpose.  Our  success  has  been  very  great, 
esptoially  in  England,  Holland,  and  Germany.  They  have  taken  our 
machines  quite  liberally,  to  the  extent  of  $20,000  per  month. 

5.  There  are  no  obstt^cles  in  the  customs  regulations  of  any  foreign 
country,  except  Canada,  that  restrict  or  i)revent  the  extension  of  our 
trade.  In  Canada  we  are  practically  prevented  from  extending  our 
business  beyond  a  limited  extent  because  the  duty  is  35  per  cent 
against  us.  This,  added  to  the  price  of  our  machines,  makes  them  so 
expensive  that  the  Canadian  people  do  not  take  them  as  rapidly  as  in 
countries  where  the  tariff'  is  much  less.  If  we  could  have  reciprocity 
with  this  country  I  am  sure  that  trade  of  all  kinds  could  be  extended, 
as  they  do  not  manufacture  so  well  or  cheaply,  or  in  variety,  as  we  do 
in  the  United  States.  In  regard  to  the  other  countries,  they  have  a 
natural  tendency  not  to  buy  American  goods,  for  the  reason  that  they 
come  into  competition  in  countries  where  the  value  of  our  goods  shows 


duct.    In 
ow  might 

LPS  ago  is 
he  capital 

six  years 
jportation 
V  material 

are  about 

Lirers  is  in 
rs  there  is 

•  us  in  the 

rs  both  in 

'  mauufac- 

3  of  manu- 
re all  the 
ik  the  pro- 

1 1890,  nor 

iture  tariff 
the  Presi- 
Americau 


RECIPROCITY   STATEMENTS. 


480 


Belgium, 

|by  means 

sent  out 

iry  great, 

taken  our 

|iy  foreign 

)n  of  our 

[ding  our 

per  cent 

tlvem  so 

[dly  as  in 

)ciprocity 

jxtended, 

las  we  do 

ly  have  a 

[hat  they 

Ids  shows 


to  an  advant.age  over  theirs;  tlierofore,  when  we  go  to  their  lioiiui 
markets  to  arrange  for  commercial  sales,  we  lind  a  natural  nntioniil 
aversion  to  buying  American  g0(»ds.  We  think  if  i'('('ii)ro('ity  were 
introduced  into  these  countries,  it  would  create  a  much  better  feeling 
between  the  commercial  elements  of  society. 

<!.  There  liave  been  no  changes  in  the  tariff  regulations  of  foreign 
countries  so  far  as  they  relate  to  our  line  of  exports.  They  have  not 
changed  in  this  class  in  the  last  six  years. 

7.  We  do  not  think  the  removal  or  reduction  of  customs  duties 
imposed  by  foreign  nations,  except  Caimda,  upon  the  merchandise  which 
we  manufacture  would  make  any  material  difference  in  the  sales,  or  aid 
us  in  the  extension  of  our  export  trade,  altlumgli  we  would  get  the  same 
l^rice  per  machine  as  we  do  now,  but  the  profit  would  be  that  mnvAi 
larger. 

8.  The  volume  of  business  compared  with  that  of  six  years  ago  is 
about  quadru])]e  what  it  was  th'  ;. 

9.  The  selling  prices  of  the  machines  are  maintained  the  same  as  they 
were  six  years  ago,  but  they  are  being  much  better  made  and  are  vastly 
superior  machines  in  every  way,  which  in  reality  lowers  the  ])rice. 

10.  The  advantages  of  our  foreign  competitors  in  cost  of  merchandise 
and  trans})ovtation  charges  to  foreign  markets  are  none,  in  some 
countries,  of  ccmrse,  they  have  an  advantage  in  cheaj)  labor  and  in 
transportation.  The  same  facts  are  maintained  in  relation  to  their  sur- 
rounding neighbors.  Ours  being  a  specialty,  we  do  not  compete  with 
them  materially  in  foreign  markets. 

11.  We  arc  the  sole  manufacturers  in  our  line  in  the  world  and  do  not 
compete  with  foreign  merchants,  except  possibly  in  Germany,  where  they 
reduce  our  prices  about  half,  but  do  not  manufacture  as  tin<>  a  machine. 

12.  The  general  effect  of  the  reciprocity  treaties  made  in  18!K)  was 
favorable  to  this  country  to  a  degree  which  is  hard  to  estimate.  The 
whole  country  felt  its  thrill  to  the  center.  Manufactories  were  running 
full,  money  was  being  turned  into  the  country  in  a  stream,  and  the 
trade  was  in  a  flourishing  condition.  Immediately  upon  this  unfavor- 
able legislation  against  reciprocity,  the  effect  was  magical;  facjtories 
which  were  running  full  were  obliged  to  close  partly  down,  discharge 
some  of  their  hands,  and  reduce  their  out[mt  to  an  amount  which  this 
country  alone  could  take.  We  think  you  will  find  that  is  the  chief 
secret  in  the  shorter  hours  the  factory  is  obliged  to  run  at  the  present 
time.  We  can  reach  this  trade  with  all  our  manufactories  if  reciproc- 
ity is  again  revived,  as  it  produces  a  friendly  feeling  in  all  foreign 
n.ations  to  us,  and  that  is  the  chitif  factor  in  gaining  trade.  No  matter 
how  good  you  may  manufacture  your  goods  or  how  reliable  the  material 
whicli  goes  into  them,  if  you  have  not  a  friendly  fieeling  in  the  markets 
of  the  world  you  will  be  obliged  to  content  yourself  with  a  snnill  por- 
tion of  the  trade. 

13.  We  most  emphatically  favor  the  application  of  the  reciprocity 
principle  for  future  tariff"  legislation  and  the  enactment  of  a  general 
law  authorizing  the  President  to  negotiate  reciprocity  treaties  with 
both  European  and  American  nations  so  far  as  possible.  We  think 
this  will  produce  a  friendly  feeling  to  the  United  States,  and  not  one  of 
antagonism,  as  now  exists  in  the  markets  of  the  world. 

We  wish  to  thank  you  for  the  privilege  of  replying  to  your  circular, 
and  have  no  doubt  that  all  of  the  replies  which  you  receive  will  serve 
as  a  guide  to  enlighten  the  way  to  revive  business  in  this  country.  But 
of  all  thinjj^s,  the  (piickest  is  to  raise  the  tariff  on  articles  which  we  (!an 
manufacture  here,  thereby  giving  our  manufacturers  something  to  do. 
ii 


490 


RECIPROCITY    STATEMENTS. 


They  can  send  (heir  sur]>lns  abroad  at  a  very  small  proiifc,  and  in  that 
way  reduce,  tlio  ('((st  of  niiiimfacture  upon  the  whole. 

We  think  the  Wilson  tarilf  bill  did  more  to  injure  this  eountry  the 
past  three  years  than  any  one  enactment  ot  Congress  could  have  pos- 
sibly don(^.  It  has  canscd  abnost  stagnation  of  business  in  certain 
lines.  JManufacturers  who  were  accustomed  to  manufacture  regular 
lines  of  yoods  have  gfone  into  specialties,  such  as  bicycles  and  smallci* 
articles  of  that  nature. 


Botilton,  Bliss  &  Dallett,  New  YorTc. 

2.  Lines  of  trade,  general  merchants  and  managers  of  the  Red  D  Line 
of  American  steanishii)s. 

3.  Our  principal  trade  is  with  the  Kepublic  of  Venezuela. 

t.  Our  l)usiness  w.is  established  over  lifty  years  ago,  and  since  that 
time  our  piedecessors  and  ourselves  have  done  everytiiing  in  our  power 
to  develop  the  trade  between  the  two  countries.  At  lirst  we  employed 
one  or  two  small  schooners  to  carry  our  goods;  subsequently  we 
employed  brigs  and  barks,  not  only  to  carry  our  own  goods,  but  also 
general  freight.  In  the  year  1871)  we  chartered  two  small  Gernuin 
steamers.  A  few  years  later  we  substituted  American  steamers  of 
about  1,(500  tons  gross.  These  in  turn  have  been  replaced  by  first-class 
American  passenger  steamers  of  about  2,G0()  tons  gross,  and  we  have 
recently  added  a  direct  line  to  Maracaibo.  The  success  of  our  efforts 
in  extending  the  trade  is  shown  by  the  increase  in  the  number  and  size 
of  vessels  dispatched;  also  by  the  fact  that  while  the  total  average 
exports  from  the  United  States  to  La  (iuayra,  Puerto  Cabello,  and 
Maracaibo  for  the  years  1880  to  1885  was  35,447  tons,  the  average  for 
the  yaars  1891  to  1895  was  74,989  tons,  and  also  by  the  fact  that  Vene- 
zuela imports  more  from  the  United  States  than  she  does  from  any  other 
country. 

5.  As  far  as  we  are  aware  there  are  no  discriminations  or  obstacles 
in  the  necessary  laws  or  customs  regulations  of  Venezuela  that  restrict 
or  prevent,  to  any  considerable  extent,  the  development  of  the  trade 
between  the  two  countries. 

C.  No  changes  have  recently  occurred  in  the  tariff  of  Venezuela. 

7.  It  is  difficult  to  say  to  what  extent  the  removal  of  duties  imposed 
by  Venezuela  Avould  aid  in  the  extension  of  the  export  trade  from  this 
country.  Such  a  thing,  however,  is  not  i^ossible,  as  explained  fartlier 
on. 

8.  Our  trade  as  merchants  has  not  increased  very  mucli  in  the  last 
six  years,  as  we  have,  during  that  time,  devoted  most  of  our  attention 
to  the  development  of  the  carrying  trade  between  the  two  countries. 

9.  As  a  rule,  the  cost  of  provisions,  etc.,  is  lower  than  it  was  six  years 
ago.    The  same  is  true  as  to  the  rates  of  freight. 

10.  We  export  principallj'^  flour,  lard,  kerosene,  etc.,  all  of  which  are 
cheaper  here  than  in  any  other  country  with  which  Venezuela  has  steam 
communication.    Eates  of  freight  are  also  lower  from  this  country. 

11.  Is  answered  above. 

12.  As  is  well  known,  Venezuela  failed  to  make  any  reciprocity  treaty 
with  the  United  States,  and  a  duty  was  imposed  on  her  coffee,  hides, 
etc.  This  had  the  effect  of  shutting  out  most  of  her  coffee  from  this 
market,  and  the  trade  is  only  now  beginning  to  recover  from  the  effects 
of  h.'iving  this  coffee  diverted  to  Eurojie.  What  effect  it  had  on  exports 
is  ditlicult  to  say.  In  1892  tliey  fell  off  considerably,  while  in  the  fol- 
lowing year  they  were  larger  than  usual. 


RECIPROCITY    STATEMENTS. 


491 


in  til  at 

try  the 
,ve  pos- 
ceitiiiu 
rofiular 
siuallciL' 


L  D  Line 


ICO  that 
1"  power 
iil)loye(l 
ntly  we 
but  also 
German 
Liners  of 
rst-clas8 
we  have 
ir  efforts 
and  size 
average 
ello,  and 
srage  for 
iit  Veno- 
ny  other 

fbstacles 

restrict 

lie  trade 

el  a. 

liinposed 
Irom  this 
farther 

I  the  last 
ittention 
I  tries. 
Six  years 

Ihicli  are 
lis  steam 
itry. 

ly  treaty 
V,  hides, 
hnn  this 
[e  effects 
]  exports 
the  fol- 


13.  We  do  not  favor  the  api)li<'ntion  of  tlie  reciprocity  ]>i  inciple  to 
future  tariff'  le<;;is]ation.  Tlio  South  American  Republics  are  mainly 
dependent  for  their  revenues  on  what  tliey  can  colV'ct  tlirough  their 
custom  liouses,  and  most  of  them  can  not  allbrd  to  make  any  consjder- 
alile  reduction  in  tlieir  incomes.  As  already  shown,  the  trade  between 
tlie  United  States  and  Venezuela  has  been  built  up  slowly  but  surely 
by  the  energy  "f  our  merchants  and  by  the  maintenance  of  a  rejjular 
line  of  steamer-.  A  necessary  part  of  the  business  is  the  importation 
and  transportat  ion  of  coffee,  hides  and  skins,  etc.  Our  merchants  have 
invested  larjje  sums  of  money  in  the  trade  and  we  have  built  American 
steamships  especially  adapted  to  it,  and  it  would  be  an  undeserved 
hardship  to  us  all  if  the  United  States  was  again  to  impose  a  discrim- 
inating duty  on  these  goods  when  imported  from  Venezuela.  From  all 
that  we  can  learn,  the  only  advantage  the  United  States  gained  by  the 
reciprocity  treaties  was  from  the  provision  admitting  sugar  free  of  duty. 
We  therefore  respectfully  suggest  tl..  j  if  the  princii»le  is  applied  to 
future  tariff  legislation,  it  be  restricted  to  sugar,  and  not  be  extended  to 
other  articles  which  have  been  admitted  free  of  duty  for  so  many 
years. 


Dole  Brothers  Company,  Boston,  Mass, 

2.  Dealers  in  hops  and  malt. 

3.  Great  Britain,  Canada,  Newfoundland,  and  Australia. 

4.  We  obtained  a  copy  of  Bulletin  of  Bureau  of  American  Republics 
and  addressed  a  number  of  firms  whose  names  are  given  therein  who 
are  resident  in  West  Indies  and  South  America,  with  a  view  to  open  np 
business  if  possible  in  those  sections,  and  have  received  replies  to  so'-^o 
of  our  letters,  bnt  it  is  haidly  time  for  us  to  give  an  intelligent  oi)inion 
as  to  whether  a  trade  of  any  magnitude  can  bo  built  ui)  in  these  places 
in  our  class  of  goods,  as  we  do  not  know  whether  either  hops  or  malt 
are  consumed  there  or  not. 

5.  We  have  found  that  the  specific  duty  of  6  cents  a  pound  'iow  levied 
on  hops  imported  into  Canada  is  a  barrier  to  our  export  business  to  that 
country,  for  at  present  prices  this  is  equal  to  a  duty  of  100  per  cent, 
and  the  shipments  of  hops  from  the  United  States  to  Canada  is  much 
less  than  was  the  case  heretofore.  Canada  can  not  compete  with  the 
United  States  in  hop  culture,  and  we  think  that  a  duty  more  favorable 
to  American  hops  would  increase  our  exports  materially,  as  we  would 
supply  more  hops  to  the  exclusion  of  England. 

0.  JS'othing  that  we  know  of. 

7.  Removal  of  duty  on  American  hops  imported  into  Canada  would 
increase  our  export  trade  to  a  very  great  degree. 

8.  Volume  is  fully  as  large. 

9.  Prices  are  now  about  one-fifth,  and  never  were  so  low  before  in  the 
history  of  the  business. 

10.  Really  no  advantage  in  either  cost  of  merchandise  or  in  transpor- 
tation, as  prices  of  American  hops  are  lower  than  foreign  growths. 

11.  We  think  that  American  hops  can  compete  in  iirice  and  quality 
with  those  grown  in  any  country  of  the  world,  but  as  the  chief  foreign 
market  is  England,  where  a  great  many  hops  are  also  grown,  a  large 
increase  in  exports  could  only  avail  at  a  time  of  failure  of  the  hop  crop 
in  that  country  and  when  a  surplus  stock  was  held  in  this  country. 

12.  Do  not  remember  that  hops  were  ever  included  in  any  reciprocity 
treaty. 


492 


RECIPROCITY    STATEMENTS. 


i;?.  The  applioatlon  of  tlio  reciprocity  principle  to  fntTire  tarilTT  lepis- 
liitioii  and  the  enactment  of  a  general  law  aiithorizinji  the  President  to 
negotiate  reciprocity  treaties  with  both  European  and  American  nationn 
would  meet  with  our  hearty  approval,  and  we  believe  this  a  sure  nieans 
of  extending  our  foreign  trade. 


J,  P.  Crane  &  Co.,  Wohtirn,  Mass, 

2.  Tanners  and  curriera  of  grain  and  split  leather. 
.'{.  England,  CJermany,  Austria,  Franco,  Russia,  Italy,  Turkey,  Kor- 
•vay,  Sweden,  Switzerland,  Australia,  and  wherever  leather  is  used. 

4.  We  at  all  times  use  our  best  endeavors  to  extend  our  foreign  trade 
where  we  find  satisfactory  credits.  Our  lirst  exportation  began  nearly 
ten  years  ago,  or  in  1887.  The  sale  the  first  year  was  about  $«),(H)0,  but 
increased  till  ISO."),  when  one  party  took  about  $100,000  in  value,  and 
others  had  increased  their  purchases  largely.  As  we  have  the  reputa- 
tion of  producing  the  best  leather  of  the  kind  in  the  world,  it  is  of  the 
liigliest  cost,  for  which  reason  its  use  is  somewhat  restricted.  We 
invite  the  foreign  l)uyers  to  our  works  that  they  may  inspect  the  manner 
in  which  we  treat  our  product,  by  liberal  correspondence  and  free  use 
of  the  cables;  also,  we  have  been  afforded  much  assistance  by  the 
"reports  of  the  United  States  consuls." 

Several  of  our  consuls  are  Jin  honor  to  tlie  service,  and  if  unaffected 
by  ])olitical  changes,  as  they  should  be,  will  be  of  increasing  value  in 
opening  up  desirable  markets. 

Our  first  sales  were  in  England,  afterwards  extended  to  the  markets 
named.  We  would  advise  our  manufacturers  to  closely  study  the  for- 
eign market  before  engaging  in  introducing  their  goods.  Many  have 
not  used  due  care,  and  failing  of  success  have  witlidrawn  therefrom. 
Before  entering  the  business  we  studied  their  needs,  and  the  results  are 
very  satisfactory. 

5.  Our  gieatest  obstacle  in  extending  the  use  of  our  make  in  Franco, 
Austria,  Canada,  and  a  few  other  countries  has  been  the  somewhat 
restrictive  duties  upon  finished  leather.  We  made  several  trials  in 
Cana<la,  and  without  success.  There  are  a  large  number  engaged  in 
our  business  in  Quebec,  but  the  product  is  very  inferior. 

Tlie  oidy  remedy  which  we  can  conceive  of  good  results  ensuing  must 
be  the  free  exchange  of  the  products  of  the  two  countries.  Though 
they  have  lower  cost  tanning  material  and  with  much  lower  wages 
paid  the  workmen,  we,have  no  lear  of  competition  there. 

(J.  In  so  far  as  we  have  iTUowledge  no  change  has  occurred  that  has 
affected  our  business. 

7.  Our  reply  i-.  end)odied  in  that  to  the  fifth  query. 

8.  The  year  1S90  is  not  comparable  with  that  of  1800  because  of  the 
peculiar  condition  in  which  the  leather  manufacturer  has  been  placed, 
especially  duri'  g  the  past  seven  months.  Dui'ing  the  early  part  of  1805 
and  till  Septen- ber  values  increased  rapidly,  then  receded  in  like  ratio 
to  the  present  tine,  Avhile  rio  one  is  competent  to  prognosticate  the  future. 
The  foreign  market  is  affected  in  like  degree,  as  the  principal  foreign 
buyers  have  their  representatives  here  and  promptly  advise  by  cable 
their  iirvncipals. 

We  ffu  not  consider  it  would  be  of  any  material  benefit  for  our  manu- 
facturers to  establish  branch  houses  in  European  markets.  The  low 
rates  of  interest  pertaining  there  enables  the  houses  engaged  in  import- 


RECIPROCITY   STATEMENTS. 


493 


lat  lias 


of  the 
Iplaced, 
lof  1895 
le  ratio 
1  future, 
foreign 
cable 

raauu- 
Ihe  low 
Import- 


ing Aiiiorican  leather  to  distribute  same  at  a  very  ni«i(U'rate  ooinpensa- 
tiou,  aiul  such  as  would  not  induce  us  to  enter  the  flchl. 

If  our  manufacturers,  not  only  of  Icatlier  l>ut  in  numy  otlicr  lines  of 
production,  will  keep  their  goods  of  uniform  excellence,  delivering  at  all 
times,  as  we  have  made  it  a  rule  to  do,  goods  equal  to  sample,  we  fidly 
believe  they  will  iiu;reas(^  their  sales  aiu!  realize  a  satisfactory  result. 

We  do  not  consider  Europe  as  a  dumping  ground  for  undesirable 
goods  at  houK',,  but  that  the  business  so  condu<!ted  will  be  unsteady  and 
oft(Mi  a  failure,  while  those  engaged  in  endeavors  to  introdiu'C  goods  of 
merit  are  often  doubtfully  received.  Honest  dealings,  with  closci  atten- 
tion to  the  denninds  of  the  nuirhets  abroad,  will,  we  fnlly  believe,  insure 
success  in  a  great  nuijority  of  cases  ami  a  stable  demand  be  secured. 

In  many  localities  the  people  are  capricious,  and  sonu' articles  of  merit 
(so  ciuisitb'red  here)  will  not  meet  with  ready  acceptaiuic.  The  majority 
of  continental  buyei's  are  governed  by  special  marks,  and  when  found 
true  to  (pialitj^  and  selection  a  permanent  consumption  is  insured. 

{).  Values  are  very  near  those  of  1890,  w Idle  v.e  i)ay  the  same  wages 
as  then. 

10.  Any  advantage  possessed  by  the  foreign  |)rodu('er  is  balanced  by 
others  we  have.  Transi)ortation  charges  vary  somewhat,  being  gov- 
erned by  8ui)ply  and  denuind,  but  at  present  we  have  exceptionally  low 
freight  rates  accorded  us  and  (!au  deliver  in  Liverpool  at  less  cost  than 
from  Bostou  to  New  York.  We  can  deliver  in  London  at  very  mucrh 
less  cost  than  the  freight  to  that  city  from  Liverpool.  We  only  regret 
that  we  can  not  ship  in  American  vessels  instead  of  contributing  on 
every  shipment  to  a  foreign  8hii)owner  the  nuuiey  that  should  be  dis- 
tributed ;imong  the  American  owner,  builder,  crew,  and  repairer  of  the 
vessel,  and  open  a  new  source  of  employment  in  our  overcrowded  labor 
market. 

11.  In  quality  we  have  no  competitor  there,  while  the  price  is  gov- 
erned by  quality  as  a  rule.  We  will  state,  however,  in  explanation  of 
an  enigma  to  too  large  a  portion  of  our  people,  that  we  sell  our  goods 
at  the  highest  price  we  obtain  in  the  markets  in  which  the  lowest  wages 
is  paid  in  our  special  industry.  Wherever  w^e  sell  the  wages  does  not 
att'ectus  in  the  least  degree.  The  "labor  cost"  establishes  the  exchange 
of  commodities,  and  our  product  costs  us  less  by  a  liberal  percentage 
than  that  of  like  goods  anywhere  in  the  world,  and  we  pay  our  workmen 
the  highest  wages  known  a'.id  furnish  them  constant  employment. 
"Good  pay  for  good  work  will  stand  against  the  wM)rld,  and  good 
wages  wisely  spent  is  the  best  guaranty  of  prosperous  and  continuoi.3 
employment." 

12.  To  this  we  feel  incompetent  to  reply  as  we  would  desire.  Our 
line  of  goods  is  not  such  as  would  be  used  in  quantities  by  our  South 
American  neighbors,  probably  for  a  long  time  in  the  future,  and  we 
have  not  yet  made  persistent  effort  to  introduce  them.  From  a  brief 
study  of  the  matter,  we  concluvled  the  ditference  of  time  in  settlement 
of  accounts,  as  they  require  longer  time  than  in  England  or  on  the 
Continent,  was  not  desirable,  and  in  connection  with  the  moderate 
amounts  we  could  place  there  we  ceased  for  the  present  to  give  atten- 
tion there.  Leather  of  light  material,  like  kid,  goat,  and  sheepskin,  are 
consumed  there,  with  many  kinds  of  textile  goods  and  hardware.  We 
trust  those  engaged  in  the  manufacture  of  these  will  sustain  schools 
to  educate  the  youth  of  this  country  to  the  needs  of  South  America; 
and  we  believe  it  will  prove  a  fine  field  for  many  of  our  young  men  to 
enter  upon  when  they  acquire  the  knowledge. 

13.  We  are  in  favor  of  the  application  and  the  enactment.    We 


ill 


vil 


i:    i : 


^w^^ 


!■■■ 


494 


RECIPROCITY   STATEMENTS. 


also  believe  it  is  for  mutual  interests.  Reciprocity  should  first  be  negoti- 
at(Ml  witli  our  nearest  neighbors,  Canada  and  Mexico,  on  broad  lines, 
and  with  l^iUroi)e  as  eavly  as  i)os8ible. 

Thougli  not  disposed  to  intrude  our  personal  ideas  as  to  the  virtue  or 
error  of  restrictive  tariff  in  our  succeeding  object  lesson,  we  trust  it 
will  be  accepted  as  an  endeavor  to  illustrate  an  important  fact. 

The  <'laim  made  at  time  of  the  enactment  of  the  McKinley  tariff  bill 
(so  termed)  Avas:  ''  No  one  could  suffer  in  paying  duties  w^^en  the  raw 
material  was  imported,  as  when  finished  and  exported  the  duty  was 
re])aid  the  importer,  less  a  small  per  cent  retained."  This  drawback 
featuie  was  much  dwelt  upon  by  Senator  Aldrich  (the  actual  compiler 
of  that  bill)  and  others  interested  in  its  adoption,  as  a  suttlcient  reason 
no  one  should  oi)pose. 

In  August,  181)0,  we  imported  from  England  some  partially  tanned 
hides,  and  when  finished  into  grain  leather  one  of  our  foreign  custom- 
ers vrould  take  it.  Our  first  i)ayiiient  of  duties,  10  per  cent,  ^vas 
increased  about  three  months  later  (at  which  time  the  goods  ordina- 
rily would  have  been  shipped  by  us)  to  15  per  cent.  When  we  did  ahip 
them,  we  received  the  drawback. 

We  did  not  expect  to  x>i"otluce  leather  from  these  hides  at  a  less  cost 
than  from  domestic  hides,  but  to  produce  a  new  Mne  of  goods,  which,  if  at 
as  low  cost,  would  furnish  increased  em])loymentthatwould  fill  our  works 
to  its  full  capacity,  and  l;he  increase  alone  would  support  some  200  per- 
sons. We  will  not  here  relate  other  details  we  have  at  hand,  but  the 
uncertainty  as  to  amount  of  duties  for  which  we  were  liable  (anitf^ra  of 
large  amount  in  a  year's  business,  and  the  due  loss  of  init^rest  thereby), 
the  required  routine  of /jed  tape,  together  with  being  unaMe  to  make 
l)ronq)t  shipment  upon  cable  orders,  as  we  must  await  the  appearance 
of  a  customs  weigher  at  our  wo^'ks  before  packing,  caused  us  to  relin- 
quish the  business,  as  it  is  at  best  conducted  on  close  margins  of  profit. 

There  was  no  profit  derived  from  the  initial  effort,  and  we  feared  as 
much  loss  as  gain,  if  continued.  France  advanced  her  rate  of  duties 
upon  finished  leather  in  consefjuenco  of  that  bill,  and  we  can  not  mar- 
ket there  above  oncteuth  the  amount  we  otherwise  could,  while  the 
same  applies  to  Austria,  as  well. 

With  free  hides,  exportation  of  finished  leather  has  increased,  and 
we  note  that  the  increase  from  Boston  ahme  from  January  1,  of  the  cur- 
rent year,  to  March  ^S,  was  in  value  $803,000,  as  compared  with  same 
time  in  1895. 

One  of  the  greater  benefits  to  be  derived  through  reciprocity  with 
Canada,  if  included  in  the  treaty,  is  the  sui)ply  of  lumber,  diminishing 
to  1  hat  extent  the  cutting  of  our  forests,  thereby  saving  this  section  of 
the  country  the  heavy  losses  caused  by  the  increasing  si/e  of  the  freshets 
or  overflows  in  late  winter  and  early  s|.ring  months.  We  are  reducing 
our  forests  too  rapi<lly,  and  we  should  leave  a  better  hericage  to  those 
who  follow. 

1'he  proposed  commercial  treaty  in  1882  with  Mexico  extended  in  suc- 
cessive years  to  May,  1S87, in  which  ve  were  represented  by  (icn.  U.  S. 
Grant  and  William  li .  Trescot,  esq.,  ap])ear8  as  liberal  concession  by  both 
(lovernnients  as  could  be  passed.  It  is  to  be  regretted  it  was  not  con- 
Huiumaled  there,  but  12  of  the  13  members  of  the  Ways  and  Means 
Committee  voted  adversely.  Of  the  28  articles  to  be  admitted  here  free, 
coffee,  eggs,  esi)arte,  and  grasses  for  manufacturing  paper;  goatskins, 
raw  hides,  sheepskins  (mooI  removed),  h)gwood  autl  like  material  for 
dyeing;  india  rubber,  (piicksilver,  wood,  and  timber  unmanufactured 
were  the  principiil  articles,  but  all  were  raw  material. 


RECIPROCITY    liTATEMENTS. 


495 


Theio  were  73  articles  to  be  admitted  to  Mexico  free,  the  principal 
being  iron  beams  and  rafters,  stoves,  8t«^el  beams  for  mines,  road  car- 
riages, all  kinds;  clocks,  pumi)s,  all  kinds;  iron  and  steel  raila,  loco- 
motives, leather  and  rubber  belting,  petroleum,  crude  or  refined; 
industrial,  agricultural,  and  mining  machinery;  steam  engines,  sewing 
macliines,  tools  of  iron,  steel,  or  wood;  barbed  wire,  and  water  pii)cs. 
With  a  i)rivilege  of  "exchanging  so  many  classes  of  goods  upon  which 
much  labor  had  been  expended  for  raw  material,  of  which  we  reciuire 
large  quantities,  it  is  a  mystery  why  the  committee  were  so  strongly 
adverse  in  their  decision. 

Mexico,  after  internal  troubles,  now  stable  in  her  government,  at  one 
time  in  serious  fliuincial  »lifliculty,  in  1877  l>egau  to  improve,  and  in 
1891  and  1892  was  able  to  obtain  an  jncome  above  exi)e:ises,  reducing 
her  debt  of  $150,000,000  one-half  in  fourtecii  years.  We  seem  sliort- 
sight(!d  in  ])ursuing  a  policy  estranging  the  two  countries,  wliile  she  is 
in  need  of  immense  Rui)[)lies  we  should  provide  her,  while  the  great 
development  now  taking  i»lace  there  is  in  progress 

European  merchants  and  manufacturers  accede  to  their  exactions, 
such  as  are  not  known  here,  but  ours  should  do  the  same  and  have  a 
full  share  of  the  trade  of  above  12,000,000  people,  of  whom  a  large 
portion  are  ready  to  accept  our  wares,  and  in  great  variety. 

In  the  Argentine  Kepublic  imnionse  forests  exist  from  which  tannic 
acid  can  be  piocured.  The  bark  of  the  red  cibil  yields  15J  per  cent, 
or  more  than  our  oak;  tlie  white  quebracho  wood,  12  ]»er  cent,  and  its 
leaves  27 A  per  cent;  the  shells  of  the  espinillo  fruit  yields  33.2  of  the 
purest  quality  and  almost  colorless. 

Tannic  acid  is  most  readily  obtained  from  tlio  cibil  and  quebracho 
which  are  found  in  iuimeuse  forests  along  the  banks  of  tlie  Tapper 
PfiTana  liiver,  handy  to  ocean  vessels  of  ordinary  draft.  Germany 
has  entered  into  tlie  procurement  of  lier  acid  tlicre,  and  increasing 
largely  in  her  shijuuents  therefrom.  That  country  (Argentine  Fepub- 
lic)  im])orts  the  iinest  varieties  of  French  and  Eiiglisli  leatlier,  and 
makes  it  into  boots  and  shoes,  harness,  saddles,  trunks,  etc.  She  im- 
ported in  1884  from  Belgium  in  boots  and  shoes  the  value  of  $194,000, 
France  $123,000,  England  $101,000,  and  we  sold  them  $14,570.  The 
two  former  supjdied  shoes  attractive  in  appearance,  some  hand-made, 
but  the  poor  work  ga\'e  them  little  endurance.  England  sui)i)lied  shoes 
witli  heavy  upjiers  and  thick  broad  soles,  a  nuu;h  better  shoe  for  service. 

The  above  showing  is  not  comnu'ndabk^-  to  the  manufacturers  of  tliis 
count  y.  It  is  a  well  known  fact  that  our  manufacturers  of  almost  all 
kinds  of  wares  arc  inclined  to  prescribe  the  goods  our  South  American 
neighbors  shall  take  to  certain  ideas  they  have,  and  are  careless  in  the 
packing  fud  delivery.  While  the  I'hiropean  has  found  the  field  so  good 
a  one  to  work  in  and  is  using  his  utmost  endeavors  to  increase  his  dis- 
tribution there,  our  more  progressive  merchants  and  manufa(;turers 
seem  loath  to  enter  into  more  intimate  relations,  even  where  we  can  i)ro- 
duce  at  less  cost  than  those  now  supplying  those  markets,  and  the 
snmller  of  our  concerns  can  not  atiord  to  build  up  a  trade  ther'3  excei)t 
by  a  combination  of  interests. 

Thoufh  our  importations  from  Europe  exceed  our  ex])ortations  there 
at  present,  new  lines  of  goods  are  constantly  being  added  to  those  we 
formerly  shipi)ed  there,  and  we  believe  many  others  can  be  sold  if  the 
business  is  intelligently  (;onducted. 

Though  our  ]io))ulation  is  rapidly  increasing  and  should  dciaiul  a 
greatly  increasing  amount  of  commodities,  yet  the  market  is  often  con 
gested  and  retiuires  an  outlet  to  otJier  countries j  but  if  weidace  barrieis 


496 


RECIPROCITY   STATEMENTS. 


at.  our  customs  that  excliule  proper  exchanges  we  are  obliged  to  sacri- 
fice in  i)rices  in  entering  those  markets  we  need  to  absorb  our  surplus. 

The  oft-recurring  changes  in  einploynie'it  caused  by  iinjjroved 
machines  and  methods  adopted  in  nearly  all  our  manufacturing  indus- 
tries cause  many  to  remain  idio  until  other  avenues  are  opened  to  them, 
but  with  reciprocity  liberally  extended  it  should  insuie  a  greater  dis- 
tribution for  our  wares  and  a  more  constant  emi»loyment  of  oui'  artisans 
in  producing  many  wares  we  are  able  to  compete  in  and  exchange  with 
them. 

We  beg  your  indulgence  for  intruding  at  so  great  length,  but  greatly 
interestecl  as  we  are  in  promoting  this  industry,  we  acceiJted  your 
invitation  to  furuish  such  imormatiou  as  we  could. 


Standard  Oil  Company  of  Keio  York,  Neio  York,  If.  T, 

In  response  to  your  circular  of  date  March  4,  we  beg  respectfully  to 
say  that  our  business  is  that  of  producing,  refining,  and  dealing  iu 
petroleum  and  its  products,  lx)th  at  home  and  abroad,  and  that  as 
regards  foieign  countries  we  are  dealing  more  or  less  with  all  countries 
using  illuminating  oils.  There  are  son)e  of  the  questions  contained  in 
your  circular  which  we  find  difficult  to  answer  Ri)ecifically,  and  beg  per- 
mission therefore  to  answer  in  this  general  way.  Our  chief  competition 
abroad  is  Avith  Russian  oil.  This  oil,  though  not  producing  so  large  a 
I)ercentage  of  refined  oil,  nor  making  so  good  an  illuminant  as  Ameri- 
can oil,  is  nevertheless  produced  in  such  large  quantities — a  single  well 
sometimes  producing  daily  nearly  as  much  as  our  whole  daily  produc- 
tion— and  at  so  low  a  cost  that  the  refined  product  can  be  put  on  the 
markets  of  the  world  at  a  much  lower  cost  than  American  oil.  To-day 
Pennsylvania  crude  is  selling  at  $1.34  per  barrel  and  llussian  crude  at 
30.33  cents  per  barre'.  In  addition  to  this,  the  proximity  of  Russia  to 
Euroi)ean  consumers,  as  well  as  to  the  great  markets  of  the  East — 
India,  Java,  China,  and  Japan — enables  them  to  secure  transportation 
at  a  nuich  lower  cost  than  from  the  United  States. 

Now,  whether  recii)rocity  would  aid  us  in  more  thoroughly  competing 
■with  this  product,  it  is  not  easy  to  answer.  We  are  not  aware  that 
reciprocity  has  matoially  affected  the  consumption  of  American  oil  one 
way  or  another.  There  are  some  countries  where,  because  of  the  most- 
favored-nations  clause,  we  could  receive  no  benefit,  as  the  countries 
having  the  clause  wouhl  be  put  on  same  basis  as  America.  The  general 
increased  use  of  relined  petroleum  as  an  illuminant  has  eiuibled  us 
largely  to  increase  our  export  business  as  a  whole  during  the  period 
referred  to  in  your  circular,  but  at  the  same  time  our  trade  with  the 
countries  in  the  far  East,  to  which  we  have  referred,  has  been  materially 
reduced  by  Russian  con)petition.  We  may  note  that  while  the  average 
price  of  crude  oil  in  1895  was  much  higlier  than  in  188i),  yet  the  aver- 
age i)rice  of  refined  oil  was  about  the  same  in  both  years,  showing  that 
the  consumer  has  had  the  benefit  of  the  economies. 

In  treating  this  question  it  must  be  kept  in  mind  that  many  countries 
impose  a  large  duty  on  petroleum  as  a  mere  nuitter  of  revenue,  which 
would  not  be  helped  by  reciprocity,  though  a  i"eductiou  of  duty  would 
undoubtedly  stinuihite  consumption. 

In  conclusion,  we  would  say  that  we  have  used  all  efforts  to  extend 
the  ex])ort  business,  reducing  cost,  opeidng  direct  comnumication  with 
foreign  ciuintries,  and  iu  all  ways  aiming  to  increase  the  general  con- 
sumption of  petroleum  and  its  products. 


RECIPROCITY    STATEMENTS. 


497 


)  sacri- 
urplus. 
proved 
;  iiidus- 
j  them, 
ter  dis- 
A'tisaiis 
^ii  with 

greatly 
sd  your 


tfully  to 
iiling  ill 
that  as 
ountries 
ained  in 
beg  per- 
i  petition 
)  hirge  a 
3  Auieri- 
igle  well 

produc- 
it  on  the 

To-day 
crude  at 
lussia  to 

East— 
)ortation 

mpeting 
are  that 
I  oil  one 
e  uio.st- 
ountries 
general 
ibled  U8 
e  period 
with  the 
aterially 
vverage 
he  aver- 
ing  that 

5ou\itrie8 
e,  which 
by  would 

lo  extend 
lion  with 
leral  con- 


W.  H.  Parsons  &  Co.,  Neic  York,  N.  T. 

2.  We  are  manufacturers  of  news  pa])er  and  dealers  in  other  grades. 

3.  We  are  doing  business  with  Australia,  and,  to  a  smaller  extent, 
with  South  America  and  with  Great  Britain. 

4.  We  have  made  direct  ettbrt  to  extend  our  trade  with  Great  Biit^ 
ain  by  having  had  our  own  representative  there  und  by  giving  i)ersonal 
attention  to  the  subject.  In  South  America  we  have  endeavored  to 
extend  our  trade  by  correspondence  and  by  dealing  with  established 
commission  houses  in  this  city,  and  are  meeting  with  some  success  in 
both  directions. 

5.  We  are  not  able  to  express  an  opinion  on  this  subject. 

6.  The  same. 

7.  The  removal  or  I'eduction  of  customs  duties  by  South  American 
countries  would  be  a  material  help  in  the  extension  of  our  export  trade. 

8.  Our  exi)ort  trade  has  increased  during  the  past  six  years. 

9.  Prices  are  lower  than  six  years  ago. 

10.  Our  chief  ccmi)ctitors  are  German  and  other  continental  manu- 
facturers; we  believe  they  have  advantages  in  the  cost  of  transporta- 
tion. 

11.  We  believe  we  are  able  to  compete  with  foreign  merchants,  in 
both  quality  and  price  of  the  lower  grades  of  paper;  by  which  we  moan 
papers  made  entirely  or  to  a  large  extent  from  wood  pulps,  comprising 
news  papers  a'ld  the  lower  grades  of  book  and  writing  papers. 

12.  13.  In  reply  to  these  questions,  we  beg  to  say  that  our  export 
trade  has  continued  to  grow  notwithstanding  the  repeal  of  the  reciproc- 
ity treaties,  but,  in  the  absenc^i  of  anything  better,  we  are  in  sympathy 
with  the  reestablishment  of  such  treaties  with  the  South  American 
nations. 


The  B.  F.  Goodrich  Company,  Alcron,  Ohio, 

2.  Manufacturei's  of  rubber  goods. 

3.  England  and  Cliile. 

4.  Have  made  no  special  eflbrts.  Sent  a  representative  to  London 
last  year. 

5.  No. 

G.  None. 

7.  l>r>  not  tlrnk  it  would  make  any  difference. 

8.  Oui  fori'i  n  business  is  very  small,  and"  has  all  been  established 
within  six  years. 

0.  Lower  by  from  15  to  25  per  cent  for  such  f^^ods  as  we  export. 

10.  We  believe  the  advantages  are  all  in  onr  favor  for  the  goods  we 
inannfacture  for  export.  They  consist  almost  entirely  of  what  are  known 
as  statitmers'  and  drnggists'  snndries. 

11.  They  can  not  compete  with  us  for  goods  of  the  same  quality. 

12.  Onr  experience  has  been  too  limited  to  reply  to  this  question 
int<-Ilig('ntly. 

13.  Yes. 


J.  A.  Dennis,  crpoH  agtnt  of  the  Trenton  Rubber  Company. 

2.  Mechanical  rubber  goods. 

3.  Ocntral  and  South  America,  Mexico,  West  Indies,  Australia,  New 
Zealand,  South  Africa,  Japan,  China,  and  the  Uawaiian  Islands. 

H.  liep.  2203 32 


fV-W 


Mi 


498 


^B 


RECIPROCITY    STATEMENTS. 


4.  I  have,  by  correspondence,  distribution  of  samples,  and  by  sales- 
men, increased  my  sales  about  100  per  cent  in  six  years,  mostly  in  Amer- 
ican countries  and  Japan. 

5.  By  the  renewal  of  reciprocity  treaties  many  obstacles  may  be 
removed  that  now  exist  to  the  detriment  of  the  foreign  trade  of  this 
country. 

(>.  ^o  particular  chanjje,  as  far  as  I  am  aware. 

7.  If  an  oi)inion  can  be  bised  on  the  workings  of  the  reciprocily 
treaties,  I  would  say  it  would  increse  it  about  40  jier  cent  above  tlie 
year  1893. 

8.  The  volume  of  my  business  for  1895  was  about  100  per  cent  larger 
than  that  of  1890. 

9.  They  average  about  10  per  cent  lower. 

10.  The  cost  of  goods  in  tliis  country  averages  less  tlmn  in  Europe. 
Transportation  charges  are  about  the  same. 

11.  In  the  higlier  qualities  of  goods  we  can  compete  in  price  and 
quality  very  favorably ;  in  the  medium  and  low  qualities  we  can  undersoil 
the  foreign  manufacturers,  quality  being  equal. 

12.  The  reciprocity  treaties  were  exceedingly  favorable  to  t^e  export 
trade  of  the  United  States.  The  effect  of  their  repeal  on  my  business 
is  shown  by  the  following  figures: 

18110 Increase  over  prftvions  year. .  35  per  ccTit 

IHftl Increase  over  iivevions  year..  C!>  per  cent 

18!t2 Increase  over  ])revion8  year..  29  per  (-vui 

18!);^ Increase  over  ]ireviou8  year..  2  ])er  cent 

189 1 Decrease  from  pnivions  year . .  20  per  con t. 

18'J.") Decrease  Ironi  previous  year. .  3  per  cent 

13.  I  am  strongly  in  favor  of  any  measure  that  will  renew  the  reci- 
procity treaties. 


New  Orleans  Brewing  Association,  New  Orleans,  La, 

2.  Brewers  of  lager  beer  in  kegs  and  bottles. 

3.  Republic  of  Mexico,  all  republics  of  Central  America,  the  northern 
republics  of  South  America,  Cuba,  and  Jamaica. 

4.  We  have  worked  hard  to  extend  our  foreign  trade  by  seiiding 
representatives  into  those  countries,  by  advertising,  by  corresponden(;c, 
by  circulars,  and  by  other  means  generally  resorted  to  by  business  men. 

5.  The  abolishment  of  the  "drawback  system"  by  the  Secretary  of 
the  Treasury,  Hon.  John  G.  Carlisle,  as  well  as  the  exorbitant  duties 
in  vogue  in  some  of  the  Lsitin- American  countries,  especially  Cuba  and 
the  Bepublic  of  Mexico,  have  seriously  restricted  the  extension  of  our 
trtule  in  the  countries  mentioned  above. 

0.  We  do  not  know  of  any  changes  thai;  have  recently  occurred  in  the 
tariff  of  foreign  countries  so  far  as  they  relate  to  <mr  line  of  busiiu\ss, 

7.  .Mexico  and  Cuba  should  reduce  the  tariff  on  beer  about  one  hall' 

8.  The  volume  of  our  business  six  years  ago  amounted  to  about 
$125,000  per  annum,  while  it  has  now  decreased  t''  about  $00,000  per 
annum. 

9.  i'resent  selling  i)rice8  liave  decreased  about  10  per  cent  against 
six  years  ago. 

10.  Our  foreign  competitors  have  a  considerable  advantage  in  the 
price  of  empty  bottles.  The  cost  of  merchandise  while  likely  in  favor 
of  our  foreign  competitors  does  not  amount  to  much.  In  regard  to 
traus])ortatiou  charges,  the  advantages  of  our  competitors  are  very 


^ 


RECIPROCITY    STATEMENTS. 


491) 


t)y  saU'S- 
.11  Amer- 

inay  be 
e  of  this 


ciprocity 
bove  the 

nt  laiixer 


Euio[)o. 

firice  aiul 
undersoil 

^^e  export 
'  business 

35  per  <'<'"t 
(3!>  per  cent 
29  per  eeiit 

2  per  ('ent 
20  per  ceut 

3  per  cent 

w  the  leci- 


e  northern 

»y  seiMlinuc 
)Oudenct', 
ness  men. 

'cretary  of 
Hit  duties 
Cuba  iind 

uon  of  our 

ned  in  the 

business. 

it  one  half 

to  about 

00,000  per 

;nt  against 

^age  in  the 
'ly  in  favor 
1  regard  to 
8  are  very 


great,  inasmuch  as  tliey  are  in  constant  intercourse  with  those  coun- 
tries; their  vessels  receiving  always  full  cargoes,  thus  jilacingtheni  in  a 
position  to  obtain  cheaper  freight  rates  than  is  possible  fioin  the  United 
States.  Their  lines  of  stea.ners  sail  also  iiiorc  fieiiuently  and  regularly 
than  those  of  this  country.  We  are  also  hampered  here  daring  (!ertain 
times  of  the  year  with  too  severe  quarantine  restrictions. 

11.  We  claim  superior  (juality  of  go(>;ls  but  our  prices  are  somewhat 
higher  than  those  of  our  foreign  competitors. 

IJ.  To  this  (luestion  we  can  not  give  you  a  positive  reply,  as  we  did 
not  particnlarly  ])ay  that  matter  attention. 

13.  We  favor  the  application  of  the  reciprocity  principle  to  future 
tariff  legislation,  and  the  enactment  of  a  general  law  anthorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible,  as  such  legislation  must  undoubt- 
edly redound  to  the  benefit  of  our  commerce  and  encourage  manufac- 
turers of  this  country. 

We  suggest  for  the  benefit  of  the  beer  business  of  the  United  States 
the  refunding  of  duties  ''••i''  on  imported  bdlth's  but  again  exported  to 
foreign  countries  lilled  wk-     3er  the  manufacture  of  this  country. 


SamH  Bloom  &  Sons,  San  Francisco,  Gal. 

2.  Glove  leather,  for  heavy  working.     Driving  gloves,  principally. 

3.  Capital  invested,  including  value  of  plant,  etc.,  about  !?<  ir».000. 
Hands  employed  vary,  2o  to  So.  Value  of  product  ranges  from  !!!05,000 
to  $«J0,000  annually. 

4.  Sold  mo.-^tly  home. 

5.  \e8.  In  I'^ngli'iid,  by  advertising,  but  our  class  of  goods  only 
slightly  used  there,  as  working  gloves  are  a  luxury  ai)parently  there. 

7.  The  discriminations  are  not  in  the  sale  of  the  finished  goods,  but 
in  the  purchase  of  the  raw  materials,  viz,  iu  better  shiiiping  facilities 
and  obstacles  in  the  matter  of  disinfectioris;  better  mail  and  cable  con- 
nections, there  being  only  small  foreign  connections  on  this  side,  and 
steamers  making  only  occasional  trips  to  Australia — about  twelve 
steamers  annually. 

10.  Our  output  is  at  i)resent  about  what  it  was  six  years  ago. 

11.  Cost  of  production  is  less  somewhat,  owing  to  lower  price  of  silver ; 
our  tonnage  is  cheaixu-  abroad,  and  the  duty  reduction  has  lessened 
the  cost  of  some  of  it.  Also  labor  is  somewlnvt  cheaper.  The  raw 
stock  (hides)  have  advanced  a  little.  On  the  whole,  we  are,  we  think, 
on  a  little  lower  basis  of  cost  to-day. 

12.  The  selling  prices  are  also  projiortionately  less. 

13.  The  only  comjjetition  fnun  foreign  sources  are  in  fine  goods,  and 
we  think  it  is  only  a  question  of  some  ten  years  when  all  these  better 
gocxls  will  be  made  here,  when  the  knowledge  of  the  idass  of  raw  stock 
requiretl,  and  sources  to  draw  it  from,  method  of  manufacturing,  etc., 
are  looked  fully  into. 

14.  The  foreign  dealers  in  fine  goods  have  the  advantage  of  us  in 
better  facilities  for  .shipping  (raw  and  finished)  and  closer  connections 
with  the  commercial  world.  Outside  of  that  don't  think  they  have 
much  advantage  iu  manufacturing  as,  to  considerable  evtent,  American 
genius  has  overcome  Eurojiean  cheajt  labor  of  machinery. 

10.  It  has  increased  with  us,  on  a  whole,  somewhat  in  years  past. 


ii 


nil  I  m 


wm 


m^^ 


500 


RECIPROCITY    STATEMENTS. 


17.  We  think  if  all  were  to  work  to  full  capacity  market  at  home 
would  be  unable  to  absorb  it  as  fast  as  oft'ered. 

18.  It  did  not  have  any  inllnence  (latent)  on  our  business  so  far  as  we 
know. 

19.  Don't  know.  Farniers  been  cryingthis  long  time  about  lowprices, 
but  now,  when  they  are  at  their  lowest,  they  seem  to  luive  shut  up  for 
good  and  don't  hear  anything  of  them.  Certain  Ualifornia  products 
seem  to  be  doing  well  in  fruit;  grain  is  low,  however. 

L'O.  We  are  in  favor  of  anything  which  will  foster  foreign  trade  and 
make  new  outlets  for  goods,  better  shipping  facilities,  and  closer  com- 
mercial connections. 

In  our  esi)ecial  line,  glove  leather,  we  as  a  nation  have  only  been  able 
to  manufacture  the  coarser  goods  so  far,  but  we  see  the  entering  wedge 
on  line  goods  and  we  feel  satisfied  if  the  commercial  connections  of 
America  were  better,  as  far  as  the  shipment  of  raw  merchandise  is  con- 
cerned, we  would  not  only  be  able  to  control  the  trade  on  tine  goods  in 
our  own  country,  but  also  in  foreign  lands.  We  have  demonstrated 
this  fact  in  the  last  ten  years  in  tine  shoe  leathers,  even  in  the  face  of 
the  fact  that  a  large  quantity  of  goods  w^ere  drawn  through  indirect 
sources  and  many  obstacles 


Jose/ph  P.  Tolton,  105  Summer  street,  Boston,  Mass. 

2.  Shoes,  shoe  machinery,  and  shoe  manufacturers'  supplies. 

3.  Great  Britain,  France,  Germany,  Austria,  and  Australia. 

4.  Have  made  direct  efforts  to  extend  my  trade  by  annual  visits  to 
Europe,  advertising  in  English  trade  papers,  and  by  correspondence 
with  Australian  concerns. 

C.  The  discriminations  in  France  on  American  shoes  as  against,  say, 
British  shoes  is  no  doubt  a  serious  hindrance  to  American  business,  but 
I  can  not  suggest  any  means  of  changing  this  unless  we  might  con- 
sider the  idea  of  making  American  ports  as  free  for  French  goods  as 
]>ritish  ports  are  now  for  the  same  },oods.  Another  hindrance  1  have 
mot  with  is  the  <lelay  and  consequent  annoyance  caused  by  customs 
olllicHMS  here  when  samples  are  sent  over  to  this  country  for  guidance 
in  heli)ing  to  meet  foreign  requirements. 

0,  7.  1  have  no  time  to  take  close  observations  of  foreign  tariffs,  that 
is  a  matter  my  customers  must  take  care  of  themselves;  they  ])ay  the 
duty,  not  I.  Neither  can  1  say  to  what  extent  the  removal  or  reduction 
of  the  customs  duties  abroa<l  would  extend  my  trade.  1  believe  these 
duties  have  much  less  bearing  on  the  matter  than  is  generally  supi)osed. 

8.  I  only  commenced  business  six  years  ago;  mf,  export  turnover  iu)W 
reaches  about  .*Jli5(),000  per  year. 

0.  Improvements  in  devices  for  manufactures  have  cheapened  most 
articles  1  export. 

10.  Tb  3  greater  advantages  foreign  merchants  and  traders  possess  are 
their  better  and  more  direct  means  of  communication  and  transporta- 
tion. Foreign — that  is,  European — labor  is  much  cheaper  by  the  hour 
than  American,  but  the  cost  of  the  result  of  the  labor  does  not  pro- 
IKutioimtely  vary;  for  instance,  shoes  made  in  this  locality  cost  per 
pair  only  about  one-half  for  labor  as  compared,  say,  with  Northam])ton 
or  Ijcicester,  the  shoe  centers  of  p]ngland,  altlumgh  the  weekly  earnings 
of  the  Massachusetts  shoemaker  amount  to  nearly  twice  as  nmch  ^as 
his  English  cousin;  so  that  what  advantages  British  shoe  exjiorters 
possess  as  regards  transportation  are  more  than  counterbalanced  by  our 
cheaper  means  of  production. 


it  home 

ar  as  we 

w  prices, 
it  up  for 
products 

rade  and 
ser  coui- 

aeen  able 
ig  wedge 
ctions  of 
se  is  eon- 
goods  in 
jnstrated 
le  face  of 
L  indirect 


I. 

1  visits  to 
5pondence 

linst,  say, 
>iuess,but 
light  con- 
goods  as 
ice  1  have 
y  customs 
^  guidance 

ariffs,  that 
y  i)ay  the 
reduction 
ieve  these 
supposed. 

iiover  iu)W 

eiied  most 

jossess  are 
raiisporta- 
y  the  hour 
^s  not  pro- 
y  cost  per 
rthiinipton 
yearnings 
s  much  ,as 
ex]K)rters 
iced  by  our 


I 


RECIPROCITY    STATEMENTS. 


501 


11.  In  every  way  I,  and  everybody  in  tliis  locality  earnestly  wishing 
for  foreign  business  in  shoes  and.  kindred  articles,  can  compete  with  the 
world. 

12,  13.  If  reciprocity  means  a  lowering  of  our  taritts  to  a  favored 
few  nations,  1  am  in  favor  of  it  as  far  as  it  goes,  and  the  larger  the 
number  of  "favored  nations"  the  more  I  am  v^  favor  of  it,  until  we 
reach  a  condition  when  we  can  freely  buy  and  sell  vi'ith  the  whole  world. 


Croicn  Distilleries  Company,  San  Francisco,  Cal. 

2.  Manufacturers,  dealers,  exporters,  and  bottlers  of  spirits  and  wines. 

3.  Capital,  $750,000;  average  pay  roll,  40  persons;  annual  output, 
$1,750,000. 

4.  Market  our  product  both  home  and  abroad;  proportion  of  export 
about  5  per  cent. 

5.  Sell  both  direct  to  foreign  dealers  and  through  commission  mer- 
chants. 

6.  Have  worked  and  are  working  through  foreign  resident  agents  and 
through  traveling  salesmen;  work  in  China,  Japan,  Australia,  Hawaii, 
Central  America,  Mexico,  and  British  Columbia.  Are  trying  to  reach 
South  America,  but  transportation  facilities  from  San  Francisco  not 
favorable. 

7.  As  to  discriminations  or  obstacles: 

British  Columbia.  The  Dominion  of  Canada  obstructs  the  exportation 
of  American  si)irit8  or  atiy  spirits  from  American  ports  by  prescribing 
an  unmerchantable  package.  Attached  copies  of  correspondence 
explain  the  matter.  The  Secretary  of  State  seems  unable  to  provide  a 
remedy.  The  remedy  lies  with  Congress  and  with  the  President,  under 
the  tariff  act  of  August  28,  1894,  which  empowers  him  to  retaliate. 

8.  In  Hawaii  the  spirit  duty  has  been  advanced  to  $3.50  per  gallon, 
and  it  is  proposed  to  advance  the  duty  on  wines  from  15  to  50  cents  i)er 
gallon,  and  on  beer  from  15  to  30  cents  per  gallon.  The  United  States 
have  a  reciprocity  treaty  with  Hawaii. 

0.  The  removal  or  reduction  discriminately  in  our  favor  would  give 
us  a  monoi)oly  of  the  trade  in  our  lines  to  the  countries  tiamed  in 
iinswer  6.  It  would  be  the  greatest  of  boons  to  the  vineyardists  of  our 
State. 

10.  Our  output  has  not  increased  in  six  years. 

11.  Production  cost  has  decrejised ;  transportation  has  not. 

12.  Selling  prices  are  lower. 

13.  Competition  to  countries  named  in  auswoi-  7  comes  from  Canada, 
Germany,  France,  and  England. 

14.  Foreign  comjietitors  have  no  advantage  in  gross  cost,  that  is,  the 
cost  of  the  product  plus  the  labor  employed.  Germany,  producing  a 
poorer  alcohol  at  a  higher  cost,  pays  imi  export  bounty  which  prevents 
our  competing.  This  affects  not  only  the  distiller,  but  also  the  farmer 
from  whom  the  grain  is  bought.  Their  laws  are  r«ssisting  to  exporters. 
The  American  exporter  of  spirits  can  not  secure  the  cancellation  of  his 
export  bonds  by  a  f  ling  of  an  outward  bill  of  lading  and  clearaiuie 
certifi(!ate,  but  is  comi)elled  to  annoy  the  foreign  buyer  with  the  execu- 
tion of  a  landing  certificate  and  its  attendant  expense,  something  that 
is  not  imposed  by  any  other  civilized  country.  Reference  is  made  to 
attached  i)ai)er8  marked  answer  14.  Again,  goods  of  American  manu- 
facture for  consumption  at  sea  are  discriminated  against  and  goods  of 


502 


RECIPROCITY    STATEMENTS. 


Il:i 


El,  •* 


II 


forciuii  production  favored.  See  copies  of  11.  li.  bills  12U  and  1212 
attaciied.  You  are  referred  to  Uon.  Grove  L.  Jolinson,  House  of  lie])- 
resentatives,  and  Hon.  Geo.  0.  Perkins,  United  States  Senate,  for  expla- 
nation of  position  of  pro])osecl  remedy. 

15.  Our  quality  is  1  ^er  and  our  prices  no  higher  than  foreign 
products. 

10.  The  total  product  has  not  increased. 

17.  The  surplus  for  export  is  large  and  could  be  moved  if  assisted. 
Inability  to  do  so  has  created  dejjression  and  low  i)rices. 

18.  We  were  not  injured  by  the  repeal  of  the  reciprocity  treaty 
because  our  lines  were  not  given  free  entry  under  same. 

11).  None,  so  far  as  respects  our  products.  They  could,  however,  be 
materially  assisted  by  judicious  treaties.  Our  vineyardists  would  iu)t 
I  e  comi)elled  to  seekcheaj)  alien  labor  if  markets  were  opened  to  them 
by  favorable  reciprocity  treaties. 

20.  We  do. 


[Correspondence.] 

Department  of  State, 

Washingio'i,  January  31,  lS9f!. 

Sin:  Referring  to  previous  corrospoiulence  relative  to  the  diHcriuunation  by  the 
Goverument  of  the  Doininioii  of  Canada  against  the  United  States  in  the  matter  of 
the  restrictions  imposed  upon  spirits  exported  from  the  latter  to  the  former  country, 
1  have  to  acknowledge  the  receipt  of  yowr  letter  of  the  14th  instant  on  the  subject. 

Your  representations  in  regard  to  the  matter  having  bfMm  carefully  considered, 
the   Department  has  reached  the  conclusion   that  your  com])laint   is   one  which 

Sroperly  should  be  submitted  to  the  legislative  branch  of  the  Federal  Govcrniuent 
y  a  petition  to  Congress. 

I  am,  sir,  your  obedient  servant, 

ElCHAKU  OlNEY. 
E.   R.   LlLIENTIIAL,  Esq., 

President  of  the  Crown  Distilleries  Company, 

100-102  Front  street,  San  Francisco,  Cat. 


San  Francisco,  January  14,  1S9G. 

Sir  :  I  ha  ve  the  honor  to  acknowledge  your  esteemed  note  of  January  7,  with  copies 
of  your  (1)  letter  of  September  1,  1895,  to  the  British  ambassador;  (2)  letter  of  Sep- 
tember 24.  from  the  British  aml)assador  to  the  Governor-(ienoral  of  Canada;  (!{)  Ca- 
nadian minute  in  council,  of  date  December  2,  1805;  (4)  letter  of  December  31,  from 
the  Britisli  ambassador  to  yourself,  and  take  due  note  of  your  advice  that  the  order 
iu  council,  section  12,  caput  13,  of  the  Consolidated  Orders  in  Council,  .luly  25,  I><S8, 
was  adopted  for  the  prevention  of  smuggling;  is  not,  in  fact,  a  discrimination  against 
the  United  States,  and  does  not  preclude  the  transit  of  spirits  from  exempted  coun- 
tries tliVDUgh  the  United  States.    The  Canadian  order  in  council  complained  of  rends : 

"That  brandy,  gin,  whisky,  or  other  distilled  spirits  shall  not  bo  imported  into 
any  part  of  Canada  iu  anj'  undecked  vessel,  or  in  any  vessel  under  the  burden  of  twenty 
t(uis,  registered  tonnage,  or  in  any  vehicle  by  land  other  than  a  railway  car,  or  in  any 
package  (except  bottletl  spirits)  containing  less  than  one  hundred  gallons,  wine 
measure,  except  that  s])irits  may  be  imported  in  casks  of  not  less  than  thirty-tive 
Imperial  gallons'  capacity,  when  for  the  purpose  of  being  manufactured  with  other 
articles  under  regulations  and  surveillance  of  the  department  of  inland  rov(uiue: 
Froridcd,  however,  That  such  s]>irit8  may  be  imported  direct  I'rom  (;n'at  Britain  nud 
other  I'^uroijcau  countries,  and  from  any  British  colony  and  from  the  West  Indies 
Islands,  in  jtackages  of  not  hiss  cajjacity  than  half  octaves,  or  in  glnss." 

It  is  a  modilication  of  the  order  of  .Inne  14,  1883,  which  I  quoted  iu  my  hitters  of 
August  2(i  and  those  following.  It  distinctly  reenacts  the  discriminating  clauses. 
It  prohibits  the  importation  into  Canada  of  8i)irits  in  packages  of  less  thun  100 
imperial  gallons'  capacity  (except  bottled  s])irits)  unless  imported  "direct  from 
Great  liritaiu  and  other  European  countries,  and  from  any  British  colony,  and  from 
the  West  Indies  Islands,"  etc.  That  is  to  say,  spirits  shipped  from  any  Euroi)ean 
country  direct  to  any  part  of  Cannda  will  be  ])erinitted  entry  "  in  packages  of  not 
less  capacity  than  half  octavos"  (10  gallons),  but  if  imported  from  the  United  States 


RECIPROCITY   STATEMENTS. 


503 


U(l    1212 

of  1Um>- 
»r  expla- 

foreiffu 


iissisted. 

y  treaty 

'^ever,  be 
Duld  not 
to  them 


31,  1896. 
;ioii  l),y  the 
3  matter  of 
IV  country, 
lie  subject, 
jonsidered, 
cue  which 
overnment 


Olney. 


tbey  will  uot  be  permitted  entry  excejtt  in  an  unwieldy  and  unmerchantable  package, 
coiitaininj;  not  less  than  100  imperial  fjallons'  capacity. 

As  the  amount  of  spirits  manufactured  in  the  Orient  is  quite  small,  and  its  con- 
sumption ecjually  so,  and  as  tliis  country  is  the  only  spirit-prodncin.n  country  not 
favored  by  the  exem)itioii  in  tlie  order,  it  does  not  seem  unjust  to  characterize  tlio 
order  as  intentionally  discriminating  against  spirits  the  product  of  the  United 
States. 

It  may  bo  not  ini])ropor  to  draw  your  attention  to  the  fact  that  spirits  are  largely 
distilled  in  (Jauada,  enjoy  a  considerable  sale  in  the  United  States,  and  tliat  no 
restriction  whatever  as  to  size  or  style  of  package  is  imposed  on  Canadian  spirits 
when  entered  cither  for  consnnijttion  in  the  United  States  or  transit  through  same. 
It  can  not  be  contended  that  sjuiits  produced  in  the  United  States  an<l  witlidrawn 
from  distillery  bonded  warehouse,  tlience  taken  in  bond  to  a  i)ort  of  ex])ort,  and  there 
laden  and  manifested  for  any  part  of  Canada  could  be  smuggled  into  Canada,  par- 
ticularly where  the  custody  of  such  spirits  is  constantly  under  the  control  of  the 
officers  of  our  Government  and  under  a  system  stricter  and  more  rigid  than  that 
imposed  by  any  other  country  in  the  world. 

The  producers  of  spirits  in  the  United  States  are  quite  as  desirons  of  exporting 
their  product  to  Canada  as  are  the  Canadian  producers  to  do  so  to  the  United  States, 
and  there  can  be  no  good  reason  why  American  manufacturers  should  not  be  assisted 
by  tlioir  Government  in  excluding  Canadian  products  by  onerous  and  restrictive  pro- 
visions if  American  products  are  not  to  enjoy  in  Canada  equal  favors  with  other 
European  countries  and  equal  privileges  to  those  enjoyed  by  them  in  the  United 
States. 

The  order  does  "  ureclude  the  transit  of  spirits  froTn  the  exempted  countries 
through  the  United  States  to  Canada,"  as  stated  by  you  in  your  note  to  the  British 
ambassador  of  September  1, 1895,  and  such  interpretation  is  made  by  the  acting  com- 
missioner of  customs  at  Ottawa,  as  shown  by  copies  of  telegrams  exchanged  and 
quoted. 

Tki.egkams  exchanged  between  Hon.  F,  E.  Kilvert,  Acting  Commissioner  of 
Customs,  Ottawa,  Ontario,  Canada,  and  Crow  '  Distilleries  Company, 
San  Francisco. 

August  23,  1895.— Sent : 

"Can  French  brandies,  Holland  gins,  Irish  and  Scotch  whiskies,  in  quarters  anu. 
octa\es,  have  entry  in  British  Columbia,  bonded  here  and  exported  in  transitt 
Answer.     Collect." 

August  23,  1895. — Received: 
•'  No." 


H5J 


14,  1S96. 
with  copies 
tter  of  Sep- 
ia; (3)  (;ix- 

»er  31,  from 
it  the  order 
ily  25,  1SS8, 
jon  against 
ipted  conn- 
ed of  reads: 
iported  into 
>n  of  twenty 
ar,  or  in  any 
illons,  wine 
1  thirty-iive 
L  with  other 
id  rev(Miue : 
lU-itain  and 
tVest  Indies 

ly  letters  of 
ing  clauses. 
!8S  than  100 
direct  from 
ly,  and  from 
ly  European 
,<age8  of  not 
nited  States 


Quarters  contain  40  American  gallons  (about  33  imperial  gallons)  and  octaves  20 
American  gallons  (say  about  17  imperial).  French,  brandies  and  Holland  gins  come 
from  European  countries.  Irish  and  Scotch  whiskies  come  from  Great  Britain.  These 
S])irit8,  when  entered  into  bond  in  the  United  States  on  arrival  i'rom  a  foreign  port 
and  then  exported  out  from  a  United  States  customs  bonded  warehouse  to  Canada, 
are  not,  by  the  "order  in  council,"  permitted  entry  because  not  in  ])ackages  of  not 
less  than  100  imperial  gallons. 

Snrely  the  American  manufacturer  is  entitled  either  to  the  assistance  of  his  Gov- 
ernment toward  the  removal  of  an  onerous  restriction,  so  as  to  be  able  to  comjiete 
in  the  Canadian  market,  or  be  assisted  by  ctjually  onerous  provisions  in  making  dilli- 
cult  Canadian  competition  in  our  home  markets, 

I  8ul)mit  the  matter  for  your  further  esteemed  cousideiation,  and  have  the  honor 
to  rem.-iin. 

Very  respectfully, 

£.   R.    LiLIENTIIAL. 

Hon.  Richard  Olney, 

Secretary  of  State,  Washington,  D.  0. 


Department  of  State, 

U'anhiugton,  Jaiiuaiy  7,  1S96. 

Sir:  Referring  to  your  letter  of  the  2(ith  of  August  last,  relative  to  the  alleged 
discrimination  by  the  Canadian  Governiuent  against  th«  importation  of  distilled 
spirits  from  the  United  States  into  Canada,  and  to  the  subsequent  correspondence 
on  the  subject,  I  now  inclose  for  your  information  a  copy  of  a  note  from  the  liritish 
ambassador  at  this  capital,  dated  December  31,  18!t5,  with  accompanying  copy  of  a 
Canadian  minute  in  council  on  the  matter,  from  which  it  appears  that  the  Canadian 


If'l 


i;  "i 
1 1 


■i  f 


I 


504 


RECIPROCITY    STATEMENTS. 


regulation  to  which  exrcption  is  taken  has  been  in  force  at  least  since  the  confedera- 
tion in  I8()7,  and  that,  beinj;  adopted  for  the  prevention  of  siringj^ling,  it  api)lies  to 
importations  from  other  soiuces  than  the  United  States.  If  there  is  in  fact  no  dis- 
criminiition  against  this  conntry,  it  does  not  appear  that  any  ground  for  complaint 
exists. 

I  am,  dear  sir,  your  obedient  servant, 

Richard  Olnky. 

E.    R.    LiLIENTIIAL,  Esq., 

President  of  the  Crown  Diaiilleries  Company,  San  Francisco,  Cal. 
(Inclosure:  From  Sir  Julian  Pauncofote,  December  31,  1895,  with  accompanying 
copy  of  Canadian  minute  in  council  dated  December  2,  1895.) 

[IncloBore.] 

British  Emrassy, 
Washington,  December  31,  1895. 

Sill:  Referring  to  my  note  of  the  11th  ultimo  and  to  previous  correspondenro 
respectinj,'  the  complaint  of  your  Government  of  an  alleged  discrimination  against 
the  importation  of  distilled  spirits  from  the  United  States  into  Canada,  I  have,  the 
honor  to  inform  you  that  I  am  in  receijit  of  a  communication  from  His  Excellency 
the  Governor-General  of  Canada,  forwarding  copy  of  a  minute  of  his  excellency's 
privy  council,  embodying  the  observations  of  the  Canadian  minister  of  trade  and 
commerce  n])on  the  matter. 

The  minute,  copy  of  which  I  have  the  honor  to  inclose,  states  that  the  regulation 
to  Avhich  exception  is  taken  has  been  in  force  at  least  since  the  confederation  of 
1867,  and  applies  to  importation  from  other  sources  than  the  United  States. 

It  is  further  represented  that  the  consideration  which  induceil  the  framing  of  the 
original  enactment,  viz,  the  prevention  of  s  auggling,  has  greater  force  at  the  present 
day,  the  incentive  to  Muuggling  being  greater  owing  to  the  higher  rates  of  duty  on 
spirits,  while  the  present  regulations  are  less  stringent. 

It  does  not,  therefore,  appear  expedient  to  the  Dominion  Government  to  cancel 
these  regulations. 

I  have  the  honor  to  be,  with  the  highest  consideration,  sir,  your  most  obedient, 
humble  servant, 

Julian  Pauncekotb. 

The  Hon.  R.  Otj^by. 

[Extract  frrai  a  report  of  the  committee  of  the  honorable  the  privy  council  approved  by  his  excel- 
lency on  Decoinbw  2,  1895.] 

The  committee  of  the  privy  council  have  had  under  consideration  a  dispatch, 
hereto  attached,  dated  September  24,  18!)5,  from  Her  Majesty's  amljassadorat  Wash- 
ington, transmitting  a  copy  of  a  note  fro'in  the  Secretary  of  State  of  the  Ui  ited 
States,  of  (liite  2l8t  September  last,  having  reference  to  what  he  claims  to  be  .  Hs- 
crimination  against  the  importation  of  distilled  spirits  from  the  United  States  into 
the  Dominion  of  Canada. 

The  minister  of  trade  and  commerce,  to  whom  the  matter  was  referred,  reports 
that  Mr.  Olney,  in  his  note,  states  that  the  Department  has  received  a  letter  from 
the  Crown  Distilleries  Company  of  San  Francisco,  alleging  that  the  Caiia<liau  order 
in  council  of  the  14th  day  of  June,  IHHli,  unjustly  discriminates  against  the  impor- 
tation of  distilled  spirits  from  the  United  States,  and  he  goes  oi\  to  (luote  what  he 
purports  to  be  the  provisions  of  the  order  in  council  in  (jnesti.  n,  and  remarks  that 
the  order  embarrasses  the  export  of  spirits  from  the  United  States  to  Canada,  as  100- 
gallon  packages  are  unusual,  and  that  it  also  precludes  the  transit  of  spirits  from  the 
exempted  countries  through  the  United  States  to  Canada,  since  the  admission  of 
such  packages  is  granted  only  to  direct  importations  from  the  countries  nauied  in 
said  order  in  council. 

Tl'  minister  states  that  the  order  in  council  governing  the  size  of  the  packages 
of  ;<pirit8  which  may  be  imported  into  Canada  is  to  be  found  in  section  12,  caput  13, 
of  t'-.e  Consolidated  Orders  in  Council,  and  bears  date  the  25th  of  July,  1888,  and 
rea  s  as  follows : 

"  Sec.  12.  (A)  Brandy,  ^in,  whisky,  or  other  distilled  spirits,  shall  not  be  imported 
into  any  part  of  Canada  in  any  undecked  vessel,  or  in  any  vessel  under  the  burden 
of  20  tons  registered  tonnage,  or  in  any  vehicle  by  land  other  than  a  railway  car,  or 
in  any  package  (except  bottled  spirits)  containing  less  than  100  gallons  wine  meas- 
ure, except  that  spirits  may  be  imported  in  casks  of  not  less  than  35  imperial  gal- 
lons capacity,  when  for  the  purpose  of  being  manufactured  with  other  articles  under 
regulations  and  surveillance  of  the  department  of  inland  revenue;  provided,  how- 
ever, that  such  spirits  maybe  imported  direct  from  Great  Britain  and  other  P^uropcan 
countries,  and  from  any  British  colony  and  from  the  West  India  Islands,  in  packages 
of  not  less  than  half  octaves  or  in  glass. 


t 


i 


confcdora- 
ap])]ieH  to 
act  no  (lis- 
coiiipliiint 


Olney. 


jmpanymg 


lSSY, 

SI,  1895. 
sspondeiico 
ion  against 
1  liave  the 
Excellency 
xcellciicy's 
'  trade  and 

regnlatiou 
deration  of 

D8. 

uing  of  the 
the  present 
of  duty  cm 

t  to  cancel 

t  obedient, 

XCEFOTE. 

by  his  excel- 

dispatcli, 
iit  Wasli- 
the  Ui  ited 
to  be  .  lis- 
Statea  into 

(1,  reports 
tter  from 
lian  order 
the  inii)or- 
te  what  he 
arks  that 
ada,  as  100- 
ts  from  the 
mission  of 
named  la 

packages 
i,  caput  13, 
1«»8,  and 

e  imported 
be  burden 
tvay  car,  or 
wine  meas- 
perial  gal- 
cles  under 
ided,  how- 
European 
packages 


RECIPROCrY    STATEMENTS. 


505 


"  B.  Wine  and  mnlt  liquors  shall  not  l;f>  l.nported  In  any  other  conveyance  than 
those  above  clescribed,  but  may  tlius  be  imported  in  any  of  the  packages  usual, 
according  to  the  ordinary  custom  of  trade. 

"C.  Any  spirits  imported  contrary  or  in  violation  of  tliis  regulation,  or  any  part 
thereof,  shall  be  seized  and  forfeited." 

The  minister  further  states  that  tiiis  order  in  council  is  based  upon  authority  given 
the  (lOvernor-Geiieral  in  council  by  section  245,  subsection  (E)  of  the  customs  act  as 
found  in  the  Revised  Statutes,  18H(). 

I'rior  to  the  consolidation  of  the  statutes  practically  the  regulations  itself  formed 
part  of  the  customs  act  (vide  40  Vic,  cap.  6,  sec.  81,  18()7),  which  reads  as  follows: 

"Except  in  cases  whicli  by  any  regulation  to  be  made  by  the  Governor-General  in 
council  may  be  excepted  from  the  oi»eration  of  this  section,  all  spirits  (unless  in 
bottle  and  imported  from  the  United  Kingdom  or  in  bond  from  n  bonded  warehouse 
in  some  iiritish  possession)  brought  into  Canada  in  casks  or  packages  of  less  size  than 
to  contain  100  gallons,  or  in  other  than  decked  vessels  of  not  loss  than  30  tons  reg- 
ister, or  that  may  be  found  on  board  of  any  vessel  under  such  tonnage  in  any  part  of 
Canada,  shall  be  forfeited,  and  the  proof  that  any  spirits  landed  in  i)ackages  of  le.ss 
size  than  to  contain  100  gallons,  have  been  lawfully  imported  and  entered,  shall 
always  be  upon  the  person  otl'ering  the  same  for  sale." 

The  minister  observes  that  this  in  turn  appears  to  have  been  taken  from  some  act 
in  force  prior  to  confederation,  but  it  would  serve  no  good  purpose  to  attempt  to 
trace  it  further  back,  the  traditions  of  the  Department  being  that  its  original  enact- 
ment became  necessary  in  order  to  prevent  extensive  smuggling  of  spirits  into  prov- 
inces which  are  now  comprised  in  the  Dominion  of  Canada. 

The  minister  also  observes,  that  it  governs  the  importation  of  spirits  from  otlier 
sources  than  the  United  States,  and  that  in  consequence  of  the  difliculty  existing  at 
the  present  day  in  preventing  such  smuggling,  it  does  not  appear  to  him  that  it 
would  be  expedient  to  cancel  the  regulation,  tlie  iiicentive  to  smuggle  being  greater 
now  inconse(iiiciico  of  the  higher  rates  of  duty  imposed  upon  spirits  than  at  the 
time  of  its  original  enactment,  while  the  present  regulations  are  less  stringent  than 
ori  {finally. 

The  minister  further  observf^'^  that  the  inference  drawn  by  Mr.  Olney,  to  the  effect 
that  the  regulation  precludes  the  transit  of  spirits  through  Canada,  is  erroneous, 
inasmuch  as  no  restrictions  have  ever  been  placed  upon  such  transit  other  than  those 
applicable  to  other  goods,  ami,  in  point  cf  fact,  largo  (juantities  of  spirits  are 
iuiport(!d  intf)  Canada  from  foreign  countries  through  the  United  States,  and  large 
quantities  of  United  States  spirits  jiass  in  '     ',sit  through  Canada. 

The  comm  ttce,  on  the  recommendation  oi  the  minister  of  trade  and  commerce, 
advise  that  your  excellency  be  moved  to  forward  a  certified  copy  of  this  minute,  if 
api)roved,  and  of  its  appendixes,  to  Her  Majesty's  ambassador  at  Washington. 

All  of  which  is  respectfully  submitted  for  your  excellency's  approval. 

John  J.  McGee,  Clerk  of  the  Privy  Council. 


Sir  Julian  Pauncefote  to  the  Earl  of  Aberdeen. 

Nkwi'Okt,  R.  I.,  September  24,  !Sf>5. 
My  Lord:  I  have  the  honor  to  forward  herewith  to  youp  exctdlency  copy  of  a  note 
as  marked  in  the  margin,  which  I  have  received  from  the  Secretary  of  State,  Mr. 
Olney,  respecting  discrimination  against  the  importation  of  distilled  spirits  from  the 
United  States  into  the  Dominion  of  Canada. 
I  have,  etc., 

Julian  Pacncefotb. 
The  Eakl  ok  Abkrdken. 

[Mr.  Olney's  note  to  Sir  Jnlian  Pauncefote.] 

Depaktment  of  State, 

Waahiugton,  September  1,  1895. 

My  Lord:  I  hare  the  honor  to  inform  you  that  the  Department  has  received  a 
letter  from  the  Crown  Distilleries  Company  of  San  Francisco,  Cal.,  alleging  that  Ihe 
Canadian  order  in  council  of  the  14th  day  of  June,  18H3,  unjustly  discriminates 
against  the  importation  of  distilled  spirits  from  the  United  States  into  the  Dominion 
of  Canada. 

The  jirovision  of  said  order  on  which  the  complaint  of  the  Crown  Distilleries 
Compan^       predicated  is  as  folloAvs: 

"  That  k  ndy,  gin,  whisky,  or  other  distilled  spirits  shall  not  be  imported  to  any 
port  of  Canada  in  any  packages  (except  bottled  8i)irit8)  containing  less  than  100  gal- 
lons wine  measure:  Provided,  however,  That  such  spirits  may  bo  imported  direct  from 


''I 


,1 ,'" 


T7 


50G 


RECIPROCITY    STATEMENTS. 


Grept;  Britiiin  and  Eurnpoan  countries  and  (torn  any  Hritiflh  colony,  and  from  tlie 
WfiHt  India  Islandfl,  in  i)av  kiiRos  of  not  Ichs  c.apa  ;ity  tiian  octavos,  or  in  KJass."' 

'I'his  Older  not  onlj'  oiiiharraHBCs  tip'  export  of  8j)irit8  form  the  United  States  to 
Canada,  as  l()()->;al!on  jjacliaj^t's  are  unnHiial,  hut  also  precludes  the  transit  of  spirits 
from  the  exempted  countries  throujjli  the  United  States  to  Canada,  since  tlie  admis- 
sion of  such  piickaRes  isjjranted  only  to  direct  importations  in  the  countries  named 
in  the  order  in  council  of  July  14,  1N83. 

In  view  of  the  discrimination  made  by  tlie  Canadian  authorities  again*;t  the  Amer 
ican  nuMcdiants  enKaged  in  the  trade  in  spirits,  I  have  the  honor  to  request  you  to  do 
me  the  iV.vor  to  brinjj;  this  sobjoct  to  the  attention  of  Her  Majesty's  Government,  and 
to  express  the  hope  entoitained  by  the  l>ei.artraent  that  tiie  propriety  of  revoking 
so  much  of  the  order  con.plained  of  as  discriminates  against  the  commerce  of  this 
country  may  be  taken  into  consideration. 

I  have  the  honor,  etc.,  Richard  Olney. 


i». 


54th  Congress,  I 
lat  /Session.      ) 


H.  R.  1211. 


In  the  House  of  Rkprkskntatives. 
December  10,  1895. 


Read  twice  and  referroil  to  the  Committee  on  Ways  and  Means,  and  ordered  to  be 

printed. 
Mr.  Johnson,  of  California,  introduced  the  following  bill; 

A  BILL 
To  encourage  the  export  of  American  manufactures. 

Be  it  mtacted  hy  the  Senate  and  Hor.sf  of  llepreaeniatives  of  the  United  States  of  America 
in  Congress  assemhled,  That  all  articles  of  domestic  production  needed  and  ectually 
withdrawn  from  bonded  warehouses  for  consumption  on  any  vessels  engaged  in  foreign 
'irade,  or  in  trade  between  the  Atlantic  and  Pacific  ports  of  the  Unitecf  States,  may 
be  withdrawn  from  said  bonded  warehouses  free  of  tax,  under  such  regulations  as  the 
Secretary  of  the  Treasury  may  prescribe. 

Sec.  2.  That  all  laws  aiid  parts  of  laws  in  conflict  with  the  provisions  of  Jhis  act 
ere  hereby  repealed. 


54th  Congress,  )  H.  R.  1W2. 

Ist  Session,       ) 

In  thk  House  of  Representatives. 

December  10,  1895. 

Read  twice,  referred  to  the  Committee  on  the  Merchant  Marine  and  Fisheries,  and 

ordered  to  be  printed. 

Mr.  Johnson,  of  California,  introduced  the  following  bill : 

A  BILL 

To  amend  the  act  entitled  "An  act  to  remove  certain  burdens  on  the  American  mer- 
chant marine  and  encourage  the  American  foreign  carrying  trade,  antl  for  other 
purposes,"  approved  .June  twenty-sixth,  eighteen  hundred  and  eightj'-four. 

lie  it  enacted  bii  th<'  Senate  ii,  d  House  of  Representatives  of  the  Unitrd  States  of  America 
in  Couji^esH  asHeih.nfd,  Ti.a'  the  sixteenth  section  of  the  act  entitled  "An  act  to 
remove  certain  burdens  or  the  American  merchant  marine  and  encourage  the  Amer- 
ican foreign  carrying  trade,  and  for  other  purposes,"  be  amended  so  as  to  read  as 
f(dlow8 : 

Skc.  16.  That  all  articles  of  foreign  or  domestic  production  needed  and  actually 
withiUawn  from  boTuled  warehouses  for  consumption  on  vessels  of  the  United  States 
engaged  in  the  foreign  trade  or  in  trade  between  the  Atlantic  and  Pacific  ports  of  the 
United  States  may  be  withdrawn  from  said  bonded  warehouses,  free  of  duty  or  of 
internal  revenue  tax,  as  the  case  may  be,  under  snch  regulations  as  the  Secretary  of 
the  Treasury  may  prescribe. 

Sec.  2.  That  all  laws  and  parts  of  laws  in  conflict  with  the  provisions  of  this  act 
are  hereby  repealed. 

Treasury  Department,  Office  of  the  Secretary, 

Washington,  D.  C,  January  14,  1896. 
Gentlemen:  Your  letter  of  the  4th  ultimo  has  been  under  consideration  since  its 
rece})tion,  and  you  are  now  infor>ned,  in  reply,  that  the  Department  will  permit  a 
cancellation  of  bonds  filed  with  the  collector  of  customs  on  the  exportation  of  dis- 


1  from  the 
lass."' 
I  States  to 
tof  Hpirits 
tlie  adinis- 
ri^H  named 

S  the  Amer 
(t  yon  to  do 
nmont.  and 
»f  revoking 
jrce  of  this 

)  Olnby. 


dered  to  he 


8  of  America 
,nd  ectually 
edin  foreign 
States,  may 
Eitions  as  the 

i  of  ghis  act 


isborios.  and 


noncan  nier- 
nd  for  other 
four. 

es  of  America 
"An  act  to 
e  the  Anier- 

is  to  read  as 

mil  actually 
uited  Stiitt^s 
])ort.s  of  the 
)f  duty  or  of 
Secretary  of 

8  of  this  act 


RECIPROCITY    STATEMENTS. 


507 


tilled  spirilH  from  warehouse  No.  6,  on  the  evidence  aO'orded  by  the  outward  billn  of 
lading  and  clearance  cortilicatos. 

A  similar  conceHHion  has  been  made  in  the  case  of  n  tobacco  mannfacturinf^  ware- 
faouwe  recently  established  at  retorshurg,  Va.,  the  bond  being  modified  so  as  to 
iucl'.ide  the  above  changes  in  regard  to  the  required  proofs  of  exi)ortation,  and  the 
customs  papers  being  made  to  conform  in  the  respect  mentioned  with  the  bond. 

When  your  apj)licatiou  shall  reach  the  Department  the  matter  will  receive  the 
requisite  attention. 

Respectfully,  yours,  C.  8.  Hami.in, 

Ataistant  Secretary. 
Crown  Distili.f.riks  Company, 

100  Front  street,  San  Francisco,  Cal, 


San  Francisco,  February  19,  1S96. 
Dear  Sir:  We  have  the  honor  to  acknowledge  your  letter  of  January  14,  189(5 
(6.>12-G),  responsive  to  our  letter  of  December  4,  1895. 
We  note  with  thanks  the  ruling  that — 

"The  Department  will  permit  a  cancellation  of  bonds  filed  with  the  collector  of 
customs  on  the  exportation  of  distilled  spirits  from  warehouse  No.  6  on  the  evidence 
afforded  by  the  outward  bills  of  lading  and  clearance  certificates,"  and  that  as  soon 
as  our  application  ahall  reach  the  Department  the  matter  will  receive  the  requisite 
attention. 

Will  you  please  be  advised  that  our  application  goes  forward  concurrently  here- 
with, and  we  will  esteem  the  issuance  of  instructions  to  the  honorable  the  collector 
of  customs  at  the  port  of  San  Francisco. 

Very  respectfulUy,  Crown  Distilleries  Company. 

E.  R.  LiLiBNTHAL,  I'resident, 
Hon.  Secretary  of  the  Treasury, 

Washington,  D,  0. 


Treasury  Dbpartment,  Office  of  the  Secretary, 

Washington,  1).  C,  March  9,  1S96. 

Sir:  The  Department  is  in  receipt,  through  Mr.  E.  M.  Cleary,  of  this  city,  of  your 
letter  of  the  19th  ultimo,  asking  that  the  collector  of  customs  at  San  Francisco  may 
be  instructed  to  cancel  bonds  covering  goods  exported  from  your  bonded  manufac- 
turing warehouse  in  San  Francisco  on  the  evidence  afforded  by  the  outward  bills  of 
lading  and  clearance  certificates  instead  of  upon  proof  of  landing  abroad,  as  pre- 
scribed in  the  regulations  of  this  Department  of  Novembf^r  14,  1894,  a  copy  of  which 
is  herewith  inclosed  for  ready  reference  (S.  15442). 

In  reply,  I  have  to  state,  as  there  is  no  statutory  provision  on  i^hich  the  Depart- 
ment could  permit  cancellation  of  bonds  covering  liquors  exporttd  from  bonded 
manufacturiug  warehouse  upon  such  evidence,  your  application  is  necessarily  denied. 

Under  date  of  May  3,  1895,  the  Department  prescribed  regulations  for  the  cancel- 
lation of  bonds  given  on  the  exportation  of  tobacco  from  bonded  manufacturing 
warehouses  on  evidence  that  the  goods  have  been  duly  laden,  under  customs  super- 
vision, on  board  a  foreign-bound  vessel,  have  been  entered  on  the  outward  manifest, 
and  that  theA'cssel  and  cargo  have  been  duly  cleared  for  a  foreign  port.  This  meas- 
ure was  based  upon  the  provisions  of  the  acts  of  June  8,  1880,  and  August  8,  1882, 
amendatory  of  section  3385  of  the  Revised  Statutes,  relating  to  tobacco  and  not  to 
liquors. 

Respectfully,  yours,  S.  Wire, 

Acting  Secretary. 

The  President  of  the  Crown  Distilleries  Company, 

-San  Franinaco, 


■H't 


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y  14,  1896. 

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COMMISSION  AND  EXPORT  MERCHANTS 


TO   THE 


INQUIRIES  OF  THE  COMMITTEE  ON  WAYS  AND  MEANS. 


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comjMission  and  export  merchants. 


OIllCULAP  OF  INQUIEY  TO  MEKr  HANTS. 

Committee  on  Ways  and  Means, 

House  oe  Represen  tatives, 
Washinytov,  I).  (J.,Marchl,I89(). 
Sir:  In  order  that  they  may  give  more  intelligent  consideration  to 
pending  and  proposed  legislation,  the  subcommittee  of  tlie  Conniiittee 
on  Ways  and  Means  of  the  ilouse  of  Eepresentatives  in  dnirge  of  hills 
relating  to  reciprocity  arrangements  anu  commercial  treaties  would  l»e 
greatly  obliged  if  you  would  forward  them,  at  your  early  convenieiico, 
your  views  and  suggestions  and  such  information  as  you  are  able  to 
furnish  upon  the  following  i)oints,  namely: 

1.  Give  full  name  and  address  of  tirm  or  company. 

2.  Lines  of  trade. 

3.  With  what  foreign  countries  do  you  deal? 

4.  Have  you  made  any  direct  effort  to  extend  your  foreign  trade; 
and  if  so,  by  whiit  means,  with  what  success,  and  in  what  countries? 

.5.  Are  you  awiire  of  any  discriminations  or  obstacles  in  the  laws  or 
customs  regulations  of  any  foreign  country  that  restrict  or  prevent  the 
extension  of  your  trade;  and  if  so,  can  you  suggest  any  means  by 
which  they  may  be  removed? 

«).  What  changes  have  recently  occurred  in  the  tariffs  of  foreign 
countries  so  far  as  they  relate  to  your  line  of  exports? 

7.  How  far  would  the  removal  or  reduction  of  the  customs  duties 
imjtosed  by  foreign  nations  upon  the  merchandise  in  which  you  deal 
ai<l  in  the  extension  of  your  export  trade? 

<S.  Whiit  is  the  volume  of  your  business  compared  with  that  of  six 
yciirs  ago? 

9.  How  do  present  selling  prices  com])are  with  those  of  six  years  ngo  ? 

10.  What  advantages  do  your  foreign  competitors  have  over  you  in 
the  cost  of  merchandise  and  in  transimrtation  charges  to  foreign 
markets? 

11.  To  what  extent  can  you  compete  with  foreign  merchants  in  qual- 
ity and  prices? 

12.  VV'as  the  general  etfect  of  the  reciprocity  treaties  made  in  1S0() 
favorable  or  unfavorable  to  the  exj)ort  trade  of  the  Hnited  Slates,  and 
what  was  the  effect  of  their  repeal?  (If  your  reply  to  this  incpiiry  is 
based  upon  actual  exix'rience,  please  give  details  as  fully  as  [)ossilih'.) 

liJ.  Do  you  favor  the  ai»plication  of  tlie  re<*ii»rocity  jtrinciple  to  futnie 
tariff  legislation,  and  the  enactment  of  a  general  law  autliorizing  the 
President  to  negotiate  reciprocity  treaties  with  both  European  and 
American  nations,  so  far  as  possible  ? 

511 


612 


RECIPROCITY    STATEMENTS. 


Tliese  iTKiuiries  have  been  forwar<lecl  to  several  firms  and  corpora- 
tions en^^aged  in  the  export  trade,  and  the  reidies  are  intended  for  ]nd)- 
lication  with  a  re])ort  which  tlie  Committee  on  Ways  and  ]\leans  will 
make  to  the  House  of  Representatives;  but,  if  so  desired,  any  inlbrnia- 
tion  received  will  be  regarded  as  confidential.  All  values  should  be 
expressed  in  United  States  gold,  and  all  quantites  in  our  weights  iuid 
measures. 

Any  suggestions  or  information  of  value  bearing  on  these  subjects 
that  is  not  called  for  by  the  above  inquiries  will  be  appreciated. 
1  am,  sir,  your  obedient  servant, 

A.   J.    HOPKIN^!. 

Chairman  Subcommittee  on  Reciprocity  and  Commercial  Treaties. 


REPLIES. 

Cone  Export  and  Commission  Company,  Neic  Tori;  y.  Y. 

The  undersigned,  not  being  able  to  appear  before  your  committee  in 
person,  takes  i)!easure  in  giving  you  the  following  information : 

Since  February,  1892,  this  c(mi])any  established  an  export  dei)ai'tment, 
a])pointing  the  undersigned  manager,  in  consequence  of  a  sncu'csslul 
trip  he  made  for  the  company  to  Brazil,  at  which  time  the  reciprocity 
treaty  was  in  force.  From  February  until  December,  1894  (when  the 
treaty  was  repealed),  we  shipped  to  Brazil  8l(>o,0(Ki.72  worth  of  colored 
cotton  goods  manufactured  by  cotton  mills  located  in  North  and  South 
Carolina.  The  effect  of  the  repeal  is  shown  by  the  fact  that  in  1895  we 
only  succeeded  in  shipping  $34,0()r).7r),  a  decrease  of  over  ><lo(>,(lO(). 

You  can  safely  estimate  that  if  the  treaty  had  continued  in  force,  our 
business  in  1895  would  have  been  at  least  $35(),00()  to  $4()0,()(K>,  and  m> 
assum])tiou  is  based  on  the  fact  that  to  all  other  countries  where  we 
ex])orted  in  1894  our  business  was  doubled  and  even  trebled  in  1895, 
Jirazil  being  the  only  country  where  our  business  fell  oif.  It  must  fur- 
thermore betaken  into  consideration  that  in  Brazil  we  had  not  only  to 
pay  the  25  per  cent  dilferential  duty,  which  we  enjoyed  under  the  treaty, 
l)ut  furthermore  the  Brazilian  Congress  enacted  a  law  by  v.iiicli  it 
increased  the  duties,  and  in  January  of  this  year  al'urtlier  increase  was 
decreed — this,  however,  not  against  American  goods  alone,  but  it  alt'ect(>d 
all  cotton  goods  imported.  The  reason  this  law  was  enacted  was  to 
l)rotect  a  large  number  of  cotton  mills  which  were  built  in  Brazil  during 
1894  and  1895. 

The  class  of  American  cotton  goods  exported  at  juesent  to  Brazil  is 
])rin('ii)ally  such  as  they  can  not  manufacture  themselves. 

In  Santo  Domingo  our  trade  in  1894  was  $15,1(52.52:  in  1895  it  was 
$3.3,553.89;  an  increase  of  about  $18,000.  This  is  explained  by  the  I'ol- 
lowing  fact:  That  in  1894  we  only  had  a  limited  number  of  custonuns  in 
that  island,  while  in  1895  we  extended  the  number  to  about  five  times 
as  many  as  we  had  in  1894.  Had  the  re(!iprocity  treaty  continued  in 
force  we  should  have  done  in  1895  at  least  $100,000  worth  of  business. 
Comi>aring  the  number  of  customers  we  had  in  1894  with  those  we 
se<aired  in  18J>5,  each  customer  with  whom  we,  di<l  busiiu'ss  in  18',)4 
bought  from  us  only  one-third  of  what  he  had  bought  in  1894,  so  had  we 
not  increased  our  list  of  customers  in  1895  our  business  would  probably 
have  been  lost  entirely. 


It;' 


RECIPROCITY    STATEMENTS. 


513 


1  corpora- 
i  for  i>ub- 
leaiis  will 
:  iiitbnna- 
sliould  be 
ijilits  and 

i  subjects 
ed. 

[NS. 

Treaties. 


Y. 

iiinittee  in 

Hi: 

apartment, 

snceossi'ul 
reciprocity 

(when  tlie 
I  of  colored 
and  South 

in  18!>5  we 

I'orce.  our 
DO,  and  my 

where  we 
d  in  l.SO;"), 
t  must  fur- 
lot  only  to 
the  treaty, 
f  which  it 
crease  was 

italVectcd 
ted  was  to 
azil  duriiif>' 

o  Brazil  is 

l.S!>r)it  was 
by  tlie  to!- 

istomeis  in 

live  times 

ntinuetl  iu 

"Dusiness. 

tliose  we 

ss  ill    IS'.tt 

so  bad  we 

1  probably 


In  1895  we  established  business  in  Puerto  Eico,  and  succeeded  in 
shipping  about  $8,000  worth  of  goods.  We  can  only  ship  one  or  two 
lines  to  that  market,  because  of  the  very  hi;?h  duties  prevailing  there 
protecting  the  import  of  goods  made  by  the  Spanish  mills,  and  from 
Cuba  we  are  entirely  exclu(led,  becaii>«f  the  few  articles  we  sell  in  Puerto 
Kico  are  of  such  a  poor  quality  that  they  are  not  used  in  Cuba,  where  a 
better  class  of  goods  only  are  salable.  What  we  ha\e  stated  above  is 
in  lieu  of  a  personal  hearing. 


Cone  Export  and  Commission  Company, 

N.  Y. 


105  Franklin  street,  New  York, 


2.  Colored  cotton  goods. 

3.  We  are  not  manufacturers;  we  represent  about  forty  cotton  mills, 
the  combined  capital  of  which  we  do  not  know,  nor  number  of  persons 
employed.  Our  corporation's  capital  is  $1,000,000.  Employees  and 
travelers,  about  fifty.    Annual  sales,  six  millions. 

4.  At  home  and  abroad  we  find  our  market.    One  twentieth  abroad. 

5.  We  sell  both  direct  and  through  commission  houses. 

6.  We  have  secured  all  our  export  trade  through  travelers  who  have 
been  sent  out  to  Brazil,  Argentina,  Chile,  Bolivia,  all  Central  American 
Republics,  Colombia,  Venezuela,  Haiti,  Santo  Domingo,  the  most  import- 
ant islands  of  the  English  and  Danish  West  Indies,  Honolulu,  China, 
and  Japan.  With  the  exception  of  our  China  and  Japan  traveler,  all 
the  others  were  a  success.  We  have  had  as  many  as  six  men  traveling 
at  the  same  time,  at  an  expense  of  about  $2,000  a  month. 

7.  With  the  exception  of  the  French  colonies,  where  our  goods  pay 
a  higher  duty  than  similar  goods  imported  from  England,  we  do  not 
know  of  any. 

8.  With  the  exception  of  the  increase  of  duties  in  Brazil,  we  do  not 
know  of  any  changes. 

9.  Unless  a  considerable  reduction  can  be  made  in  the  duties  it  will 
not  aid  business  materially.  The  removal  of  such  duties  would,  of 
course,  extend  our  export  trade  to  at  least  ten  times  its  present  propor- 
tions. 

10.  We  were  not  in  business  six  years  ago. 

11.  We  refer  to  the  preceding. 

12.  We  refer  to  the  preceding. 

13.  In  every  foreign  market  where  we  have  so  far  done  business  we 
have  met  principally  with  English  competition,  but  also  with  other 
European  manufacturers. 

11.  It  is  an  established  fact  that  the  wages  are  very  much  lower  in 
England  and  Europe,  and  they  secure  cheaper  freights.  For  example, 
we  can  ship  goods  from  Xew  York  to  South  Brazil  via  Hamburg  cheaper 
than  we  can  ship  them  by  direct  steamer  from  New  York.  There  is 
furtheruiore  the  inconvenience  that  goods  shipped  from  New  York  to  the 
south  of  Brazil  are  transshipped  at  Kio  de  Janeiro,  and  the  Brazilian 
Government  compels  the  merchants  in  the  south  of  Brazil  to  pay  duties 
at  liio  if  such  goods  are  transshipped  there,  while  when  they  are  sent 
via  Hamburg  they  reach  their  destination  direct. 

15.  In  similar  quality  goods  we  can  comi>ete  with  foreign  markets, 
but  in  a  great  many  of  the  foreign  markets  the  largest  proportion  of 
goods  used  is  of  an  inferior  quality  to  those  our  nnmufacturers  are])re- 
pared  to  make,  due  to  the  higher  wages  iu  this  country,  as  it  would 
not  pay. 

H.  Bep.  2203 33 


ii 

i    i 

:!    h 

i''' 


l^-'y^   ir- 


Wkt 


Yk 


614 


RECIPKCCITY   STATEMENTS. 


10.  It  has  increased  largely. 

17.  We  are  not  in  a  position  to  answer  this  C|uestion  except  so  far  as 
the  mills  which  we  represent  are  concerned,  li"  they  were  to  produce  to 
their  full  capacity,  we  should  be  able  to  dispose  of  $1,500,000  worth  of 
goods  for  them  for  exjunt  instead  of  $300,000,  which  we  are  exporting 
now. 

18.  Theetiect  was  favorable;  the  repeal  caused  a  considsrable  falling 
off  of  trade  in  our  line. 

10.  Kot  in  our  line.  In  regard  to  18  we  have  given  you  detailed  infor- 
mal ion  in  another  letter. 

L'O.  Yes. 

JOn^lish  and  Euroi)ean  exporters  have  great  banking  facilities,  which 
e'uible  them  to  grant  a  long  t'  m  of  credit  to  their  foreign  customers, 
because  they  are  able  to  sell  their  ])aper  to  banks  who  have  branches 
in  foreign  coi'ntries,  but  the  American  exjwrt  merchant  or  manufac- 
turer who  d'jcs  his  export  business  himself  can  not  obtain  these  advan- 
tages, because  of  the  lack  of  such  banking  facilities,  and  has  therefore 
to  sell  his  goods  either  against  cash  or  on  short  credit. 

If  a  bank  were  to  obtain  a  charter  in  this  country,  authorizing  the 
establishment  of  branches  all  through  ISouth  and  Central  America  as 
well  as  Mexico  and  other  foreign  countries  where  the  business  would 
warrant  it,  then  we  would  be  able  to  grant  our  foreign  customers  equally 
as  long  credit  as  they  now  get  in  Europe,  and  that  would  in  itself,  of 
course,  largely  increase  our  business. 

We  make  this  statement  from  actual  experience,  because  as  soon  as 
we  have  commenced  to  grant  credit  to  some  of  the  largest  houses  in 
South  America  our  business  has  iucieased,  and  many  of  the  foreign 
houses  would  not  have  bought  from  us  at  all  if  we  had  compelled  them 
to  send  orders  through  a  commission  house,  because  they  do  not  wish 
to  pay  the  extra  <!ommission  for  the  i)urpose  of  obtaining  a  credit,  but 
they  want  to  deal  direct  with  the  manufacturers'  agents,  if  i)ossibIe. 

Kei)lying  to  your  circular  containing  four  interrogations,  we  beg  to 
express  the  following  opinion: 

I'Mrst.  The  etfcct  of  the  recii)rocity  arrangement  was  favorable. 

Second.  The  repeal  caused  the  loss  of  at  least  00  per  cent  of  the 
business  obtained  during  the  existence  of  the  treaty. 

Third.  It  is  both  e.\|)edient  and  advisable  to  ai)ply  the  reciprocity 
l)rinciple  to  future  tarilf  legislation  and  to  eiuict  a  general  law  author- 
izing the  President  to  negotiate  reciprocity  treaties  with  foreign  nations 
80  far  as  |)ossible,  and  not  only  to  reinstate  the  treaties  which  existed 
belbre,  but  to  try  to  establish  them  with  Colombia,  Venezuela,  and  the 
Argentine  Ite])ublic  as  well.  These  countries  are  very  large  consumers 
of  European  goods. 

l"'ourtl).  A  great  deal  can  be  accomplished  if  a  competent  consular 
service  is  established.  AVhenever  i)Ossible,  American  merchants  of 
good  standing,  established  in  foieign  countries,  should  be  appointed 
consuls  in  i)reference  to  ])ers()ns  who  have  no  knowledge  of  commercial 
routine,  and  who  very  often  have  no  knowledge  of  the  language  of  the 
country  where  they  are  sent,  which  is  an  obstacle  to  their  obtaining,  by 
]>eis()nal  investigation,  some  of  the  most  imi)ortant  details  needed  by 
the  iMcrchant  at  h(»me  who  conlemi)lates  extending  his  export  trade. 

All  European  -  onsuls  furnish  such  information  with  the  greatest 
detail  and  care,  while  Ameiican  consuls  very  often  can  not  supply  this 
information  from  lack  of  knowledges,  and  because  the  majority  of  those 
api)ointed  are  unlit  ted  for  the  position. 


i 

i 


I 


0  far  as 
iduce  to 
torth  of 
porting 

d  falling 

id  infor- 

s,  Avhicli 
^tomei'S, 
iijinclies 
iiiinufac- 
e  advau- 
heiefore 

izing  the 
iierica  as 
ss  would 
s  equally 
itself,  of 

5  soou  as 
liouses  iu 
le  foreign 
lied  tliem 
not  wish 
rod  it,  but 
)ssil)le. 
rt^e  beg  to 

ble. 

iut  of  the 

ecii)rocity 
w  autlior- 
,u  nations 
•h  existed 
1,  and  the 
consumers 

consular 
•chants  of 
appointed 
oiumercial 
lage  of  the 
aiiiing,  by 
needed  by 
rt  trade, 
e  greatest 
aii)ply  this 
ty  of  those 


I 


RECIPROCITY    STATEMENTS. 


William  E.  Peck  &  Co.,  New  Yorh,  N.  T. 


615 


2.  General  exportation  of  American  products;  our  leading  lines 
being,  first,  cotton  goods;  second,  electrical  machinery  and  supplies; 
third,  general  hardware. 

3.  Great  Brita-in,  France,  Germany,  Austria,  Australasia,  Mexico, 
Central  America,  Chile,  Argentine  Itepublic,  Uruguay,  and  Brazil. 

4.  Y^es;  by  means  of  resident  agents  and  branch  offices  carrying 
stocks  of  particular  lines  we  are  interested  in  selling.  These  etlorts 
have  been  i)articularly  successful  in  London,  Melbourne,  and  Sydney. 

5.  No. 

6.  No  answer. 

7.  Materially  so;  probably  doubling  or  trebling  our  trade  with  some 
countries — as,  for  instance,  with  Brazil. 

8.  33^  per  cent  greater. 

9.  Materially  lower,  especially  in  hardware  and  electrical  apparatus 
and  machinery. 

10.  Our  foreign  competitors  have  a  decided  advantage  over  us  iu  the 
matter  of  both  slow  and  fast  stean  ,,rs  to  the  west  coast  of  South  America, 
and  especially  to  Australasia.  We  feel  we  are  very  much  handicapped 
through  lack  of  a  steam  service  from  New  York  to  the  principal  Aus- 
tralian ports.  We  firmly  believe  that  even  a  monthly  line  of  steamers 
from  New  York  to  Australian  ports  would  double  our  business  to  that 
country.  There  are  many  lines  of  American  goods,  the  cost  of  which, 
although  the  prices  are  ou  a  par  with  the  prices  of  the  competing  con- 
tinental article,  yet  are  shut  out  simply  because  of  the  higher  cost  of 
freight.  This  is  particularly  true  of  coarse,  cheap  goods,  where  a  dif- 
ference of  one  or  two  dollars  in  the  rate  of  freight  is  a  large  percentage 
on  the  cost  of  the  article. 

11.  Quality  and  good  value  considered,  our  prices  compare  favorably 
with  those  of  many  foreign  merchants.  Unfortunately,  however,  x)rice 
in  many  foreign  markets  is  a  greater  factor  than  quality. 

12.  Decidedly  favorable  especially  as  regaixls  our  trade  with  Cuba 
and  Brazil.  The  repeal  of  these  reciprocity  laws  was  severely  felt  in 
the  case  of  trade  with  both  these  countries.  We  sjiould  say  that  our 
business  with  13razil  fell  oft"  two-thirds  the  year  after  the  reciprocity 
treaty  with  Brazil  was  ended. 

13.  Decidedly,  yes.  We  are  more  and  more  convinced  that  what  we 
want  is  not  free  trade,  but  fair  trade,  and  writer  makes  this  admission 
after  liaviug  been  for  fifteen  years  an  ardent  free  trader. 


Smith,  ITogg  t&  Gardner,  Neic  Yorle. 

2.  Dry  goods  commission,  for  the  sale  of  cotton  fabrics  and  carpets, 
representing  as  selling  agents  the  Boott,  Massachusetts,  Tremont,  York, 
and  lOverett  cotton  mills,  located  in  New  England. 

3.  China,  Japan,  South  America,  Central  America,  Mexico,  Hono- 
lulu, and  Africa, 

4.  We  have  made  no  eflfort  to  extend  our  trade  beyond  the  forward- 
ing of  samples  of  our  fabrics  through  the  American  commission  houses 
rej>resenting  foreign  houses,  which  we  are  doing  continually. 

5.  In  the  matter  of  purchases  by  Cubans,  consequent  upon  the  heavy 
duties  laid  by  Spain  upon  imported  merchandise  of  other  than  Spanish 


m 


m 


■ 
I 

mm 

i 

516 


RECIPROCITY    STATEMENTS. 


t'- 


maiiufactiu'e,  it  is  necessary  for  our  buyers  to  sliip  American  goods  to 
Spain  for  transsliipnient  tlience  to  Cuba. 

A  more  specific  reply  to  tliis  fifth  inquiry  should  be  obtained  from  the 
American  representatives  of  foreif^n  houses  in  this  country;  and  tliey 
are  practically  the  only  firms  competent  to  reply  intelligently  to  ((ueries 
G  and  7,  as  we  do  not  deal  directly  with  these  markets. 

8.  Our  ex\v,it  business,  as  compared  Avith  that  of  six  years  ago,  is 
much  larger. 

9.  Materially  lower. 

10.  The  main  advantage  possessed  by  foreign  manufacturers  is  in  the 
lower  cost  of  labor.  Regarding  transportation  charges,  the  bulk  of  the 
freight  is  forwarded  in  foreign  bottoms,  and  even  when  (as  is  frecjuently 
the  case)  heavy  shipments  are  made  from  Lowell  to  the  west  coast  of 
America  for  transshipment  to  China  or  Japan,  the  goods  are  carried 
over  the  Canadian  Pacific,  presumably  owing  to  lower  rates  of  freiglit. 

11.  Superior  mechanical  contrivances  enable  us  to  compete  success- 
fully with  the  foreign  maiuifacturer  in  fabrics,  wherein  the  element  of 
labor  is  not  a  large  percentage  of  their  cost. 

12.  We  decidedly  favor  reciprocity  treaties  with  such  countries  as 
require  our  manufactured  articles,  those  heretofore  existing  having 
undoubtedly  tended  to  the  encouragement  of  American  manufactures. 


Pomares  cf;  Cushman,  Neic  York. 

2.  Shipping  and  commission,  which  necessitates  exporting  and 
imi)orting. 

3.  At  present  chiefly  with  the  five  Kepublics  of  Central  America. 

4.  We  have  in  tlie  way  of  shipping  by  our  line  of  sailing  vessels 
around  Cape  Uorn,  to  the  Central  American  Kepublics,  and  with  fair 
success. 

5.  These  countries  d)  not  discriminate  against  the  United  States; 
on  the  contrary,  we  think  they  are  inclined  to  give  us  preference  over 
other  countries. 

G.  Since  the  abrogation  of  the  reciprocity  treaties  the  former  duties 
have  been  generally  imposed  on  most  articles  which  were  free. 

7.  We  believe  that  the  reduction  of  duties  on  articles,  such,  for  exam- 
ple, as  ])etroleum,  mineral  coals,  soap  materials,  such  ns  tallow,  rosin, 
etc.,  would  double  the  trade  in  a  short  time. 

8.  The  volume  of  our  business  has  not  increased  during  the  past  six 
years.  It  is  about  the  same,  a  reduction  of  the  commission  shipments 
and  an  increase  of  exports  on  our  own  account. 

9.  Present  prices  are  considerably  less  than  six  years  since;  we  may 
safely  say  from  25  to  30  per  cent. 

10.  Our  foreign  competitors  all  give  long  credits — from  six  to  nine 
months.  We  can  not  do  this,  as  most  of  the  merchandise  we  export 
has  to  be  paid  for  witliin  a  few  days  after  delivery.  Their  freights  by 
sailing  ships  and  by  steamers  are  decidedly  cheaper  than  from  this 
country. 

11.  (roods  of  European  manufacture  are  generally  cheaper  than  ours, 
but  then  the  «iuality  is  usually  inferior. 

12.  The  reciprocity  treaty  was  extremely  favorable  to  our  trade, 
especially  with  Cuba.      _ 


goods  to 

from  the 
[111(1  tliey 
(Kiueries 

rs  ago,  is 


3  is  in  tlie 
ulk  of  the 
reiiuently 
,t  coast  of 
re  canied 
)f  freight. 
e  success-^ 
element  of 

mitries  as 
ig  having 
lufactures. 


)rtiiig  and 

Im  erica, 
ing  vessels 
Avitli  tair 

ed  States; 
•ence  over 

iner  duties 

for  exam- 
h)W,  rosin, 

lie  past  six 
shipments 

e;  we  may 

ix  to  nine 
we  export 
reights  by 
from  this 

than  ours, 

our  trade, 


RECIPROCITY    STATEMENTS. 


517 


We  exported  to  Cuba  to  tlie  amount  of  8(5, ()()()  to  $7,000  per  mouth  iu 
provisions,  and  tlie  demand  for  miiimliictured  artich^s  was  rapidly 
increasing;  all  of  which  ceased  suddenly  when  the  treaty  was  abro- 
gated. We  are  sure  tliat  our  tiade  wouhl  have  increased  threefold  iu 
a  few  years  had  we  had  time  to  demonstrate  all  its  advantages  to  our 
correspondents. 

13.  We  are  lirm  believers  in  the  reciprocity  principle  with  Spanish 
America,  but  not  with  ICuropean  countries. 

We  omitted  in  the  iiroper  place  to  state  that  the  llc]niblic  of  Salvador 
has  recently  imposed  a  tax  (additional  to  the  duties)  of  7."»  cents  a 
cental  (100  pounds)  on  all  imported  goods,  including  coal,  so  that  a  ton 
of  coal  of  L*,'_'40  pounds,  that  cost — say,  bitumiiumscoal — about82.0.")  at 
the  railway  i>ier  iu  New  York  IJay,  pays  slO.SO  tax,  equal  to  88.10 
United  States  gold.  All  the  chief  products  of  that  country  are  admitted 
to  our  country  free  of  duty. 


Rothschild  Bros.  tO  Co.,  New  York. 

2.  Importers  of  buttons,  agents  for  Jacquot  &  Oo.'s  blacking,  and 
several  pharmaceuti(;al  products. 

3.  Yes;  France,  Germany,  Austria,  England,  Italy. 

4.  Y'es;  particularly  Canada. 

5.  Canada,  changing  its  tariff  rates  without  due  notice,  has  entailed 
severe  losses  upon  our  firm.  We  believe  that  this  should  be  considered 
in  the  next  commercial  treaty  with  that  country. 

0.  Canada  raised  the  duties  on  goods  tluit  we  actually  had  in  transit, 
and  invoices  for  which  were  already  in  the  hands  of  our  Toronto  ollice. 

7.  Y"es;  import  orders  had  been  taken  on  goods,  and  the  changes,  of 
course,  entailed  considerable  loss  upon  us. 

8.  Importations  iu  1890  were  stimulated  by  the  McKinley  tariff",  and 
since  that  time  imports  have  been  much  less. 

0.  In  consequence  of  the  foregoing  (Xo.  8)  prices  had  to  be  consider- 
ably increased,  and  everything  iu  our  line  was  selling  much  higher  than 
at  the  present  time. 

10.  We  have  no  chance  with  England  and  other  countries,  and  can 
not  compete  with  them  on  imiiorted  merchandise.  This  is  due  to  the 
fact  that  we  are  not  allowed  to  break  bulk  and  also  owing  to  the  better 
shipping  facilities,  etc.,  enjoyed  by  those  countries,  and  which  we  do 
not  possess. 

11.  We  are  iinable  to  compete  with  foreign  merchants,  either  in  qual- 
ity or  in  i)rice,  for  the  reasons  stated  in  the  foregoing  (No.  10). 

12.  We  have  had  no  actual  experience,  and  can  not  state. 

13.  We  have  no  exi»erienee,  as  stated,  but  it  is  our  individual  opinion 
that  trade  with  foreign  countries,  particularly  those  lying  near  our 
own,  could  be  increased  to  a  great  extent  by  reciprocity  treaties. 

In  reply  to  your  invitation,  we  would  suggest,  as  merchants  of  over 
forty  years'  standing,  that  in  our  opinion  the  present  tariff"  is  a  fair  one 
and  we  believe  it  would  be  in  direct  opposition  to  the  commercial  inter- 
ests of  this  country  and  the  American  peoide  to  inaugurate  any  agita- 
tion in  the  line  of  tariff  revision,  whether  for  higher  or  lower  duties. 
We  believe  it  would  thoroughly  unsettle  business,  induce  dissatisfaction 
among  all  classes,  and  militate  against  us  abroad. 


It'. 


618 


RECIPROCITY   STATEMENTS. 


^l.  .1/.  Seixas,  New  Yorl; 


2.  Export  iiiid  iniixn't  cotniiiissioii  business. 

3.  Ciibii,  Puerto  Rico,  Trinidad  (West  Indies),  V'enezuelii — princi- 
pally Spaidsh  colonies. 

4.  Constant  ettbrts  to  (extend  the  trade  by  correspondence  and  by 
travelers. 

5.  In  said  Spanish  West  Indies  Islands  discriminating"  duties  in  lavor 
of  Spanish  products  as  against  those  from  this  (iountry  restrict  and 
prevent  the  extension  of  business  with  them.  Such  restrictions  may 
in  great  meas.ii'o  bo  removed  by  re(!iprocity  treaties  like  those  made  by 
the  late  Mr.  .lames  (J.  I>Iaine.  The  liability  of  all  merchants  here  to 
absurd  and  very  grievous  custom-house  lines  in  the  Spanish  West 
lM<lies  are  to  be  complained  of,  .<s  they  are  inriicte<l  even  for  evident 
clerical  error  on  goods  entitled  by  law  to  free  entry,  without  appeal 
except  to  the  authorities  at  Madrid,  entailing  time  and  heavy  expense. 
A  correction  of  such  an  evil  should  be  insisted  ui)on  in  future  commer- 
cial arrangements  with  Spain  by  tin;  simple  devices  of  allowing  to  the 
importer  forty  eight  houis  after  arrival  of  vessel  for  post-entry  correc- 
tion of  errors  and  of  the  remission  of  lines  to  him  upon  his  olleiing  to 
pay  and  paying  the  full  duties,  if  any,  according  to  custom-house  tariff 
in  iorce  at  the  time.  On  goods  entitled  to  free  entry,  however,  no  lines 
whatever  to  be  imposed  for  errors. 

(I.  About  a  year  ago  the  lower  duties  in  virtue  of  the  reciprocity 
treaty  were  again  raised  in  Cuba  and  Puerto  liico,  on  abrogation  of 
same. 

7.  Ileducticm  of  the  customs  duties  would  without  doubt  increase 
trade  with  the  said  Spanish-speaking  c(mntries,  as  thereby  would  be 
more  equalized  the  laid-down  cost  of  the  American  and  Spanish  prod- 
ucts; also  the  cheapening  of  cost  would  increase  consumption. 

8.  The  volume  of  business  has  decreased  through  abrogation  of  the 
reciprocity  treaty  and  through  too  low  prices  of  sugar. 

!>.  Prices  of  American  i)rovisions    are  very  cheap  now.     Those  of 
molasses,  and  coffees  are  at  i)resent  on  a  paying  basis. 

10.  Our  Spanish  (sompetitors  enjoy  the  advantage  of  greatly  discrimi- 
natory duties  in  their  colonies.  On  manufactures  of  iron  and  cotton,  etc., 
Great  Britain  ami  the  Continent  are  lower  in  prices  than  the  riuted 
States,  notwithstanding  the  fact  that  we  are  the  chief  raisers  of  cotton, 
Avhich  is  transported  to  Europe  to  be  reexported  in  its  manufactured  state 
thousands  of  miles,  and  that  we  have  abundance  of  coal,  etc.  One  of 
the  largest  concerns  in  this  country,  on  furnishing  me  recently  with  esti- 
nuites  for  vailroad-bi'idge  work  and  for  rails,  said,  at  the  same  time,  that 
Europe  could  beat  him  in  i)i-ices.  On  ocean  freights,  I  doubt  whether 
foreign  comjjetitorscan  furnish  lower  rates  to  South  America  and  West 
Indies,  esi)eeiallv  West  Imlies. 

11.  (finality  oi  American  manufactured  goods  is  generally  superior  to 
that  of  Kurope;  prices,  however,  are,  as  a  rule,  lower  in  Euro])e. 

11'.  The  elfeet  of  the  reciprocity  treaty  of  1890  was  favorable  to  the 
export  trade  of  the  rnitcd  States,  tor  it  increased  it;  but  on  the  con- 
trary ^hat  of  its  repeal,  because  it  reduced  it  again.  This  is  based  on 
actual  experience. 

1^'.  I  favor  the  application  of  the  reciprocity  princii)le,  th(5  importing 
country  to  be  debarred  from  increasing  internal  taxes  on  merchan- 
dise imported  (inder  its  provisions  Avith  the  object  of  thereby  counter- 
balancing the  loss  of  customs  revenue  caused  thereby. 


sugars, 


I — princi- 

e  and  by 

ss  in  fiivor 
strict  and 
Aons  may 
3  made  by 
ts  liero  to 
lish  West 
(F  evident 
ut  appeal 
f  expense, 
e  commer- 
ing  to  tlie 
try  correc- 
offeiing  to 
ousc  tariff 
ir,  no  lines 

reciprocity 
ogation  of 

)t  increase 

/  wf)uld  be 

misli  prod- 

)n. 

tion  of  the 

Tliose  of 
Us, 

y  discrimi- 
otton,etc., 
tlie  United 
of  cotton, 
:ured  state 
One  of 
y  witliesti- 
)  time,  that 
bt  whether 

and  West 

Rni)erior  to 
rope. 

j])le  to  the 
on  the  con- 
is  based  on 

importing 
merchan- 
jy  couuter- 


a 


<5 


\i KCIPROCITY    STATKMENTS. 


Kunhordt  it*  Co.,  Xcic  Yorlc. 


519 


2.  Foreign  commission,  botli  export  and  inii)ort. 
;>.  Principally  Venezuela,  Colondjia,  and  Haiti. 

I.  \\\  arc  ('(intiniially  making  legitimate  direct  cllbrts  to  extend  onr 
foreign  trade.  The  means  cini)loyed  aie  extension  of  credit  facilities 
to  the  merchants  in  Venezuela,  Colombia, and  Haiti;  close  study  ottheir 
needs  and  the  employment  of  competent  rei)resciitati\es  to  (riivel  in 
those  countries  to  post  us  on  such  needs  and  conditions  of  tradv  thciv. 
Throngh  these  elforts  we  have  been  successful,  having  gratluall\'  and 
continually  increased  our  trade  with  them. 

5.  We  are  not  aware  of  any  discriminations  or  obstacles  in  the  laws 
or  custonis  regulations  of  those  countries.  To  the  best  of  our  knowledge 
we  enter  their  nnirkets  on  an  equal  footing  with  other  foreign  nations. 

6.  We  know  of  none. 

7.  The  nations  will  buy  their  inii)orts  in  the  cheapest  market  to  them ; 
the  greater  their  taritf  leductions  on  American  goods,  the  greater  will 
be  their  ])nrchases  here,  other  conditions  remaining  the  same. 

8.  Eiglity  per  cent  increase. 

0.  Provisions  are  about  the  same;  they  have  \aried  considerably  dur- 
ing the  last  six  years,  according  to  market  tluctuations;  hardware, 
manufactures  of  iron,  dry  goods,  and  most  all  manufactured  goods  have 
steadily  declined  and  are  now  considerably  lower  in  price. 

10.  None.  Our  main  exports  being  i>rovisions  we  have  a  decided 
advantage  over  foreign  competitors.  Transportation  charges  .are  also 
considerably  in  our  favor,  owing  to  our  closer  proximity.  European 
manufactured  goods  are  ])nt  in  those  markets  at  lower  prices  and  to  a 
greater  extent,  mainly  because  the  Eviropean  merchants  and  manufac- 
tuicrs,  not  having  such  an  advantageous  home  market  as  the  United 
States  merchants  and  manufacturers,  have  cultivated  the  foreign  trade 
and  cater  to  the  foreign  markets  in  every  way  possible.  Our  experience 
has  been  that  during  haid  times  in  the  United  States  American  man- 
ufacturers and  jtroducers  seek  custonnus  in  foreign  (countries,  and  with 
returning  i)r()Sperity  to  the  United  States  abandon  the  markets  obtained 
during  depressed  (conditions,  finding  the  home  jnarket  temporarily 
much  nnn-e  lucrative  than  markets  where  they  have  to  compete  with 
other  nations. 

II.  Leaving  pr<)\  isions  aside,  where  we,  of  course,  have  greatly  the 
advantage,  we  find  that  in  prosperous  times  in  the  United  States  we 
can  not  comi)etc  in  i)rices  with  the  more  stal)le  markets  abroad.  As  to 
quality  wc  find  the  [troductions  here,  wiien  they  are  known,  answer  the 
purpose  fully  as  well  as  produ<;ti()ns  of  other  countries.  The  main 
dilliculty  we  ha\e  exi)erienced  has  been  that  numufacturers  in  tlie 
United  States  oidy  desire  foreign  business  when  home;  (M)nditions  are 
depressed,  and  that  they  do  not  (cater  to  foreign  demand  as  to  its  minor 
reiiuirements,  style,  form,  packing,  and  other  details  which  are  thoi'- 
oughly  studied  and  conformed  to  by  European  manufacturers.  The 
general  idea  among  the  manufacturers  here  seems  to  be  that  what  goes 
in  the  United  States  should  go  anywhere  else,  failing  to  conq»rehend 
that  the  way  to  obtain  a  permanent  foreign  outlet  is  to  conform  to  the 
pe(;uliarities  and  i»redju<b'ces  of  the  people  with  whom  they  wish  to  <"rade. 

12.  ThegeiM'ral  effectof  the  reciprocity  treatiesof  1890,  in  our  opinion, 
was  unfavorable  to  the  trade  of  the  United  States.  Our  own  trade  with 
the  three  countries  we  deal  with  was  not  materially  alfected,  although 
they  were  the  three  countries  against  which  the  discriminating  duties 


'  ''I 


620 


RECIPROCITY   STATEMENTS. 


hli 


were  enforced.  In  the  case  of  Haiti,  the  vohinie  of  export  was  just  as 
great  proixtrtionately  during  that  time  as  though  the  discriminating 
duty  was  not  enforced  against  her.  Her  production  of  cofl'eo  was  sold 
witliout  any  disadvantage  in  Europe,  the  same  as  it  has  been  previous 
to  such  discrimination,  and  is  now,  after  tlie  discrimination  lias  been 
taken  away.  With  Venezuela  and  Colombia,  those  countries  found 
that  they  needed  our  food  products,  and  continued  to  buy  them  here 
the  same  as  they  did  previous  to  our  discriminaticm  against  their  coffee, 
and  have  since  its  withdrawal.  These  latter  countries  unquestionably 
suffered  through  the  duty  of  li  cents  being  put  on  their  coffees  in  this 
market.  Tlie  U  nited  States  bei  ng  their  nmin  outlet  for  their  coffees,  they 
liad  to  sock  new  markets,  and  their  cotlee  was  sold  in  Europe  much 
below  its  intrinsic  value.  While  they  suffered  loss  through  this^  the 
United  States  was  caused  a  corresponding  and  even  greater  loss,  inas- 
much as  the  diversion  of  the  coffee  of  those  countries  to  Europe  forced 
this  country  to  enter  the  Brazil  and  other  markets  in  a  larger  scale  than 
l)reviousl3',  and  led  to  an  enhancement  of  the  value  for  all  kinds  which 
replaced  the  colfee  diseriminated  against  in  our  market.  From  those 
countries  our  own  business  was  somewhat  detrimentally  affected  through 
our  having  to  reship  and  sell  in  Europe  goods  consigned  to  us  and  dis- 
criminated against  here,  and  to  pay  commissions  abroad  for  the  sale  of 
those  goods,  which,  under  normal  conditions,  we  should  have  retained 
lieie.  Undoubtedly  we  gained  some  benefit  by  increased  exports  to 
some  of  the  countries  with  whi(!h  we  entered  into  reciprocity,  but  our 
gain  was  not  at  all  commensurate  with  the  advantages  this  country 
conceded  them.  We  feel  satisfied  thai  had  no  treaties  been  in  force  our 
export  trade  would  have  been  larger  than  previously  ((^Mring  the  time 
they  01  crated)  on  ac(!ount  of  the  depressed  conditions  ng  here  and 
the  low  prices  of  all  i)rodiu;ts,  both  food  and  mauufact 

13.  We  favor  the  application  of  equitable  and,  if  possible,  general 
reciprocity.  We  do  not  favor  the  enactment  of  a  general  law  authoriz- 
ing the  President  to  put  such  treaties  into  effect  with  jjower  to  abro- 
gate them  at  his  discretion,  since  this  would  expose  us  to  sudden 
changes  that  are  always  detrimental  to  commerce. 

The  foregoing  rejdies  are  based  on  a  long  experience  in  the  export 
trade,  and  are  confined  strictly  to  the  facts  as  wo  have  found  them. 
The  trade  with  foreign  countries  is  a  diflicult  and  complex  business, 
needing  application  and  study  to  a  greater  extent  than  the  home 
market.  In  the  fifty  years'  experience  of  our  house  comi^eting  in  mar- 
kets controlled  by  Euro])ean  capital  and  industry,  we  have  not  felt  the 
necessity  of  governmental  interference  or  assistance.  We  have  found, 
on  the  contrary,  tlnit  such  interference,  whether  it  be  in  the  nature  of 
subsidies  to  vessels  or  so-called  reciprocity  treaties  of  the  type  recently 
experienced,  has  been  detrimental  to  legitimate  business  transactions. 
The  export  trade  with  our  neighbors  to  the  South,  in  our  oi»ini()n,  can 
not  be  acquired  by  coercion  nor  by  political  measures  formulated 
through  the  exigencies  of  party  i)olitics,  and  to  satisfy  the  demands  of 
classes  utterly  unconversant  with  the  primary  requirements  and  con- 
ditions of  the  countries  with  which  they  wish  to  trade.  The  primary 
question  in  the  markets  desired  is  the  question  of  credits.  They  are 
principally  debtor  countries,  and  need  foreign  capital  to  do  their  busi- 
ness. They  obtain  these  credits  largely  in  Europe,  and  naturally  their 
business  goes  to  the  peo])le  who  provide  them  with  the  funds,  especially 
so  if,  in  addition  the  people  who  furnish  the  funds,  cater  to  them  in  every 
way  inmginable,  manufacturing  and  producing  for  them  steadily  in 
such  styles  and  forms  as  tlieir  needs  reciuire,  and  generally  doing  every- 
thing in  their  power  to  hold  their  trade  as  a  desirable  pernuiueut 


just  as 
iiuiting 
as  sold 
revious 
as  beyu 
i  found 
;m  licre 
V  coU'ee, 
ionably 
4  in  til  is 
)C8,tbey 
e  niucli 
his,  tlie 
9s,  inas- 
e  forced 
ale  than 
Is  whicli 
m  those 
through 
and  dis- 
e  sale  of 
retained 
ports  to 
but  our 
country 
Force  our 
the  time 
lere  and 

general 

luthoriz- 

to  abro- 

sudden 

export 
id  them. 
)usines8, 
le  home 
in  mar- 
felt  the 
e  found, 
ature  of 
recently 
sactions. 
ion,  can 
niulated 
nands  of 
and  con- 
primary 
L'hey  are 
icir  busi- 
illy  their 
ipecially 
in  every 
adily  in 
ug  every- 
irnmueut 


HECirROCITY    STaTEMKNTS. 


521 


acijuireinent.  As  statistics  show,  this  country  has  been  making  prog- 
ress in  those  countries,  and  must  continue  to  do  so.  We  do  not  think 
that  it  can  be  iorced.  It  is  natural  that  markets  controlled  for  so  long 
a  time  by  I'juropcan  countries  can  oidy  be  entered  gradually,  as  wo 
understand  more  fully  their  re(iuirenuMits,  and  as  the  necessities  of  our 
home  prodiujers  comjiel  them  to  conform  to  sucih  requirements  and  bo 
satisfied  with  profits,  not  based  on  the  standard  of  tiie  United  States 
markets,  but  on  the  standard  satisfactory  to  their  comi)etitors  abroad. 
We  think  our  home  ])i'oducers  are  fully  competent  to  attain  those  mar- 
lets  in  time  and  hold  them,  but  the  ])rocess  will  be  a  gradual  one,  to  bo 
attained  only  by  close  application  to  the  needs  of  the  markets  desired, 
and  by  our  ability  to  extend  the  credit  facilities  now  accorded  them  in 
EuiM)pe. 

The  consular  service  that  wo  have  formerly  had  with  foreign  coun- 
tries has  been  jnuch  inferior  to  that  of  European  nations,  and  we  think 
our  commerce  would  be  greatly  benefited  if  a  better  class  of  men  should 
represent  us  in  those  positions.  It  seems  to  us  the  prinu;  requisite  lor 
such  an  officer  slumld  be  some  knowledge  of  foreign  commercial  busi- 
ness and  sufficient  intelligence  to  discern  the  movement  of  commerce 
in  the  <'0untries  he  is  accredited  to,  so  that  the  benefit  of  full  inlbiina- 
tion  from  him  can  be  at  the  disjjosal  of  his  home  Government  and  its 
merchants. 


Thco.  Herrmann,  If  etc  YorJe. 

2.  General  commission  bu  iiess.  louring  the  last  twenty  years  I  have 
given  special  attention  to  the  j^urchaso  of  American  (United  States) 
manufactures  for  export. 

3.  Mexico  and  Costa  liica,  maiidyj  also  with  Guatemala,  Uruguay, 
and  Manila. 

•1.  I  have  for  thirty-eight  years  been  connected  with  the  Spanish- 
American  trade.  During  1858  to  18(57  I  resided  in  Mexico,  and  since 
then  in  New  York. 

5.  There  are  no  special  discriminations  against  trade  with  the  United 
States  in  any  of  the  countries  with  which  I  am  connected  in  business 
as  far  as  I  know.  The  duties  imi)osed  are,  in  my  o])inion,  needed  for 
reveiuie  i>urposes  and  are  by  no  means  arbitrary  imposts. 

r».  No  changes  have  been  made  of  sullicient  importance  to  iniluence 
trade  materially.  In  Mexico  the  duties  are  paid  in  silver,  which  de- 
clined in  value  about  30  per  cent  during  the  last  six  years,  and  the 
decline  in  the  value  of  the  Costa  liica  baidf  currencj^,  in  \vhich  Costa 
Kica  duties  on  ini])orts  are  i)aid,  was  still  heavier,  while  the  nomiiud 
iniposts  remained  in  their  majority  unchanged,  and  were  in  JMexico,  in 
some  instances,  even  reduced.  It  is  natural,  however,  that  the  depre- 
ciation of  thi)  currency  intluenced  imports  unfavorablj'^,  especially  in 
Mexico,  where  a  vigorous  home  industry  received  additional  protection 
by  this  depreciation. 

7.  I  do  not  consider  an  important  reduction  of  such  duties  of  practical 
possibility. 

8.  I  notice  a  reduction  in  exports  of  cotton  goods  to  Mexico,  owing 
to  a  more  favorable  com]>etitiou  of  home  nuinufacturers.  There  is  no 
material  change,  but  rather  an  increase,  in  articles  not  produced  in 
IMexico.    Exi)orts  to  Costa  Kica  were,  I  think  on  the  main,  incrcasinir. 

t).  Generally  si)eaking,  I  think  that  i)rices  are  lower  than  in  1890,  but 

it  is  imi)0ssible  to  follow  their  range  with  the  great  variety  of  articles. 

10  and  11.  We  can  only  export  such  articles  of  manufacture  where 


522 


RECIPROCITY    STATEMENTS. 


machinery  supplants  the  liiimau  hand  very  largely  and  which  have  a 
large  home  consuinption.  Wherever  special  adaptation  to  the  needs 
of  foreign  countries  is  required  the  cost  is  ir.crcased  o'lt  of  proportion 
with  European  manufactures  of  the  same  kind,  owing  to  the  higher 
wages  paid  in  the  United  States,  and  no  change  is,  in  my  opinion,  likely 
to  occur  in  this  respect  nor  desirable  for  the  nation  as  a  whole. 

Freights  to  Mexico  and  Costa  Itica  are  on  a  competitive  basis  with 
those  from  Euroi)e.  For  the  west  coast  of  these  countries  some  goods 
are  still  shipped  from  here  to  Europe  in  order  to  be  sent  round  Cape 
Horn  on  sailing  vessels,  which  would  otherwise  go  partially  empty. 

12  and  13.  I  think  that  the  princf[)le  of  reciprocity  can  only  be  bene- 
ficial, but  without  forcing  the  policy  upon  foreign  countries  beyond  the 
representation  of  mutual  interest. 

I  can  only  answer  your  questions  in  a  general  way,  as  any  details 
would  require  close  investigation  to  be  of  any  practical  value.  When 
we  observe  our  own  large  importa  of  European  manufactures,  notwith- 
standing our  high  duties,  it  must  only  be  a  matter  of  surprise  that  our 
exports  of  manufactures  are  not  smaller  than  they  really  are.  We  sup- 
ply the  wants  of  the  masses  both  at  home  and  aBroad,  but  must  neces- 
sarily stand  back  wherever  the  needs  of  tlie  so-called  better  classes 
come  in  question,  owing  to  the  larger  proportion  of  patient,  manual 
labor  which  they  necessitate. 

Comparison  of  the  movement  of  silver  during  the  calenJer  years  1894  end  1895. 

[In  niillioiiH  of  line  ounces.] 


UNITED  STATKS. 

180-1. 

1895. 

Imports : 

Mexioo,  including or'^s .--.. 

24.30 
3.59 

34.  10 

Other  cou  11  trios  iuchuliii*'"  ores  ..- - - -   - 

3  26 

Total 

27.80 

37  36 

ExDorta : 

Of reat  Britain 

50.  CO 
.60 

20.00 

.82 

2.29 

58  00 

.06 

19.58 

^f ^xico  . ......C-... 

78 

Other  coii:itrit*a     .......  ....... - 

3  80 

Total 

74.  (!0 
40.  71 

82  82 

Net  expurtH 

4,").  46 

Total  Cort'ign  silver  oxi-orted 27.  89 


37.38 


GREAT  B 

itlTAIN. 

Imports : 

UnitPil  States 

55.80 

0.43 

38.28 

00  81 

Frniico,  Gorman  v,  and  H(>l(;imn 

7  23 

other  countries,  inclmliiiu  on  ,s - -- 

25  08 



Total 

103. 51 
0.84 

'U  02 

Net  imports -. 

16  27 

Silve.  exported 

93.67 

77.31 

10.58 

6.78 

77  75 

Exports: 

Asiatic  conn  tries 

48  6.1 

Continent  of  Kurope 

22  73 

0*lior  countries . 

6  39 



Total 

83.07 

77  75 

Frar 


Exports  to  Rnssia  tliiring  1895  exceeded  those  of  1804  about  9,300,000  ounces,  w 
rav  ■)  took  7  000,000  more  than  in  18it4. 


hile 


I  have  a 
le  needs 
opoition 
B  higher 
)ii,  likely 

isis  with 
<ie  goods 
iiid  Cape 
iipty. 
be  bene- 
lyond  the 

ly  details 
).  When 
,  notwith- 
)  that  our 
We  sup- 
List  neces- 
iv  classes 
t,  manual 

d  1895. 


804. 


1895. 


24.  30  , 

3.59  1 

34.10 
3.28 

27.80 

37.30 

=^ 

50.  CO 

.69 

20.  00 

.82 

2.29 

58.00 

.«0 

19.  58 

.78 

3.80 

74. 00 
40.  71 


82.  82 
45.  40 


27. 89  I      37.  36 


55.80 

0.43 

38.  28 


103.  51 
9.84 


00  81 

7.23 

25.98 


94.02 
10.27 


03.  07 

77.31 

10.58 

5.78 

77.75 

48.63 

22. 73 
0.39 

93. 67 

77.75 

)iincc8,  w 


hile 


RECIPROCITY    STATEMENTS. 


523 


Comparison  of  the  Mexican  r^oinage  and  exportu  of  Mexican  dollars  during  the  fiscal  years 

ending  June  30,  187S  to  2S95.' 

[Valnes  ii.  millions  of  Mexican  iloilar?;  anil  annual  averages,  ■when  Htated,  In  perlodR.] 


Cclnacc 

Exports. 

Retained. 

1878-1882  

23.61 
25. 8,? 
25.20 
27.17 
30.18 
27.63 

15.21 
23.66 
21.34 
27.17 
17.38 
17.08 

8.40 

1883  1887 

2.17 

1888-1892  

3.80 

1893 

18D4 

12.80 

1895 

10.57 

•  Data  kindly  furnished  by  Mr.  II.  Wilin.inns,  Mexican  consnl,  Berlin. 

Production  of  silver  in  the  Western  ll'orld. 
[In  millions  of  fine  onnces.] 


1894.1 

1895.» 

TTnitpd  Stntea        

54.07 
47.04 
33.40 
18.  07 
17.78 

54  00 

50.00 

28.00 

14.00 

Europe 

17.00 

Total 


179.  36 


163.00 


'As  stated  by  Director  of  United  States  Mint.        "General  indications;  subject  to  correction. 

Distribution. 


1891. 


Asiatic  roiintries,  .sliiiiinoiita  from  Gr?at  Britain  and  Tnitcd  Sif.tes. 

United  States,  for  iiiil list  rial  piirposoH 

Mexiro   increase  of  ci  it  illation  and  reimport 

Great  I'.i  iiaiii.  net  im ports 

Franri',  iiit  imports  of  bullion  and  ores,  add  inn  lionw  production... 

Ru.ssia,  lilt  imports  of  Imllioii  and  liome  )i  rod  net  ion 

Austria- II II njiary,  not  imiiorts  of  bullion  and  liomc  proline t ion 

Germany,  amounts  sniclteil  in  Germany  less  net  .xjioits  of  bullion 
Other  countries 


Total , 


1895.1 


97.31 

08.21 

7.36 

H.54 

11  00 

n.oo 

9.84 

10.27 

9.69 

III.  .50 

11.32 

2t).  00 

5.08 

5.00 

7.91 

8.00 

10.85 

11.48 

170.  36 


163.  00 


'  Ollieial  lijiiires. 


'Estiinates;  subject  to  correction. 


There  were  undoubtedly  about  10,000,000  ounces  speculativftly  held 
in  Great  Britain  at  the  end  o."  ISJ)"),  while  it  is  questionable  whether 
the  larger  iniports  of  France  during  1895  are  for  speculative  purposes, 
or  in  connection  witli  coiiutgc  tor  her  Asiatic  possessions. 

Knssia  is  evidently  preiiaring  a  subsidiary  coinage  iu  order  to  with- 
draw small  notes. 


■  it: 


524  RECIPROCITY    STATEMENTS. 

Distribution  of  silver  since  the  cessation  of  Germav  sales. 
[Annual  averages  in  millions  of  ounces,  and  goiil  values  in  millions  of  dollars.] 


1881- 

18C5. 

1880-1890. 

1891. 

1892. 

1893. 

1894. 

1895. 

.t 
o 
a 

5 

22 
2(5 

14 

28 

"a 

i 

It 

a 
> 

00 

i 

§ 

o 

10 

3 

r— . 

> 

48 
43 

27 

27 

i 

a 

0 

o 

39 
44 

44 

43 

1 

32 
35 

33 

34 

§ 

P 

rj 

o 

1 

i 

a 
O 

riircliasea    of    United    Stat08    for 

2.5 
29 

16 

31 

28 
34 

14 

36 

27 
33 

14 

3.5 

54 
31 

13 

48 

53 
30 

13 

47 

54 
49 

31 

31 

lirilisli  Iiu'lia,  tixcliutiiif;  the  Straits. 

Aliai)''ptiou  by  oIIilt  Asiatic  coun- 

trii's                                   

40 

57 

73 

170 

25 

36 

46 

107 

27 

41 

95 

163 

18 

liiciiiBtrial  demand  in  tlio  Western 
-.vorld,  coinages  in  Europe,  etc 

62 

Total 

90 

101 

112 

loy 

146  :143 

105 

145 

170 

134 

107 

In  1891  purchases  of  Spain  and  Portugal  were  an  imi)ortant  factor 
of  deuiaiul.  deliveries  for  United  States  purchases  ceased  on  Sth 
November,  1893. 

It  is  unfortunate  for  the  Mexican  trade,  and  others  whose  interests 
reciuire  stability  in  the  ])rice  of  silver,  tUat  speculation  took  hold  of  the 
metal  during  1895.  The  net  exi)orts  from  the  United  States  comparo 
as  ft)llow.s  before  and  alter  the  rise  in  jmce  with  the  same  periods  in 
1894  (millions  of  ounces) : 


Period. 


January  Marcb,  1894 
January-Marcli,  1895 
April- l)eci>iul)er,  1894 
April-Deieniber,  1895 


Ounces. 

A-vorage 

price. 

Cents. 

14.73 

64 

10.50 

61 

31.98 

03 

34.96 

67 

While  the  increase  in  ])roduction  is  not  heavy  the  rise  in  price 
stopped  its  gradual  decline. 

A  larger  i)()rtion  of  the  Mexican  production  found  its  way  via  the 
United  States  in  1895  than  during  1891,  Avliile  direct  shipments  to 
Euroi)e  were  probably  le.ss,  and  the  coinage  will  most  likely  also  show 
a  decrease,  but  a  slight  increase  in  the  i)roduction  appears  to  exist. 

Australasia  will  show  a  decrease  of  about  25  per  cent  in  its  produc- 
tion, the  ores  becoming  pooier  from  year  to  year. 

Nothing  can  be  said  about  South  America  until  returns  of  the  Ger- 
man and  otlier  continental  smeltings  are  available. 

There  is  evidently  a  heavy  increase  in  the  consumption  for  industrial 
])urp()S('s,  but  the  large  balances  not  absorbed  by  Asiatic  shi])ments 
during  tiie  last  two  years,  and  especially  during  1895,  are  astonishing. 

The  Asiatic  abscn-ption  continued  during  January-February  on  the 
large  seiiK^  as  witnessed  in  1891  but  declined  to  a  monthly  average  of 
about  .-».()()0,000  ounces  since  then. 

it  appears  to  mc  that  the  extraordinary  movements  which  hold  silver 
in  a  better  i)o.sition  than  could  be  reasonablj- expected  since  the  closure 
of  the  British- Indian  mints  and  the  cessation  of  purchases  by  the  United 
States  can  hardly  continue  much  longer. 

The  movement  in  the  United  States  during  the  mouth  of  January, 


1895. 


107   163 


18 
27 
62 
107 


LTit  factor 
1  on  5th 

interests 
old  of  the 
I  compare 
periods  in 


IB. 

73 
50 
.98 
,iJ6 

A\orage 
prico. 

Cents. 
64 
01 
63 
67 

3  ni  price 

y  via  the 

iinents  to 

ilso  show 

exist. 

s  produc- 

the  Ger- 

iiuhistri.al 
liipinents 
oiiishing. 
ly  on  the 

iverage  of 

lohl  silver 
lie  closure 
he  United 

January, 


RECIPROCITY    STATEMENTS. 


525 


1896,  and  for  the  seven  mouths,  July  1,  1895,  to  January  31,  1896,  com- 
pares as  follows  with  the  same  periods  of  the  previous  year: 


[Millions  of  fine  ouncea.] 

January— 

SoTon  months  end- 
ing Jam  aiy— 

1895. 

1896. 

1895. 

1896. 

G-roas  exnorts ................■>■■>...•..•.......>.•• 

6.25 
2.97 

7.31 
3.54 

6.05 
2.56 

7.  42 

XmportH,  incliidinf^  ores. _......-- --- 

3  39 

3.28 

3.77 

3.49 

4  03 

Shipments  from  Great  Britain  to  Asiatic  countries  from  January  1  to 
February  6,  1896,  and  during  the  same  time  in  the  two  previous  years 
were: 

[Millions  of  tine  ounces.] 


1896. 

1895. 

18!K. 

British  India .... 

Z.S2 
.35 
.40 

4.76 

3.54 

.38 

6  63 

China 

1.48 

Thn  Straits   

55 

Xotal 

8.07 

8.68 

8  66 

San  Francisco  shipments,  including  steamer  sailing  on  February  7, 
amounted  to  2,300,000  ounces,  of  which  about  1,600,000  ounces  were 
Mexican  dollars. 


Horace  W.  Calcf,  Neic  York  City. 

2.  Tallow,  grease,  lard,  fertilizers,  vegetable  and  animal  oils. 

3.  Indirectly  with  Europe,  Mexico,  Central  and  South  America. 

4.  iSo. 

5.  Believe  reciprocity  the  only  practical  thing. 

6.  Some  concessions  to  manufacturers  iu  tropical  countries  amount 
to  monopoly. 

7.  Can  not  say;  probably  it  would  aid  materially. 

8.  Much  less  as  far  as  foreign  trade  is  concerned, 

9.  Over  25  or  30  per  cent  lower. 

10.  Australia  and  South  America  animal  fats  and  Egyptian  cotton 
oil  have  until  lately  been  lower  than  our  rates  here. 

11.  Favorably  now,  thongli  labor  and  interest  cost  more  here, 

12.  Favorable,  as  far  as  I  know.    Can't  give  details. 

13.  Yes. 


J.  M.  Ceballos  &  Co.,  New  YorJe. 

2.  General  commission  and  shipping  business,  particularly  in  the 
importation  of  sugars  from  all  countries,  especially  from  Cnba;  and  in 
the  importation  of  oliv.^s  from  Spain. 

3.  Mexico,  Ecuado ',  Guateuuila,  but  more  extensively  with  Cuba  and 
Spain. 


I    Is'  if 


626 


RECIPROCITY    STATEMENTS 


4.  We  liave  eudeavorecl  to  extend  cur  foreign  trade,  particnlarly  with 
tlie  American  Republics,  by  sending  traveling  agents,  but  with  very  little 
succef*s. 

5.  We  find  that  the  i)resent  ad  valorem  duty,  especi.illy  regarding 
sugar  and  olives,  if  it  does  not  restrict  trade,  at  least  it  ham])ers  it 
very  much,  because  it  is  imi)ossible  to  make  any  exact  calculations 
as  to  what  the  duties  on  tbis  merchandise  will  be  on  account  of  the 
ajtpraisement  made  here  varying  very  much,  i)articularly  so  in  the  case 
of  sugar.  The  custom-house  rules  are  to  take  the  highest  market  in 
the  country  from  which  the  sugars  come;  for  instance,  on  sugars  com- 
ing from  Cuba,  they  take  the  umrket  price  in  Havana,  whi("h,  owing  to 
the  situation,  always  deuumds  higher  i)rices,  especially  by  purchases 
for  tSpain.  The  duty  in  this  country  being  lixed  on  the  market  value  of 
Havana,  the  sugars  from  other  i)orts  have  to  i»ay  on  much  higher  prices 
than  those  at  which  the  sugars  were  sold  at  port  of  loading. 

In  order  to  obviate  all  this  dillicult}',  we  would  suggest  a  specific  duty 
of  so  much  per  pound  on  sugars  testing  iij)  to  90  degrees,  tlien  increase 
l)er  degree  up  to  98,  with  still  another  increase  on  sugars  going  over 
Iso.  10  Dutch  standard. 

In  the  case  of  olives,  a  specific  duty  according  to  weights  would  also 
help  trade. 

0.  As  fi.i  as  we  know  no  change  has  taken  place. 

IL'.  The  reciprocity  treaties  of  1890  were  very  favorable  to  the  export- 
trade  of  the  United  States,  especially  with  Cuba,  the  ex])ortation  to 
which  country  increased  considerably  during  the  years  that  the  reci- 
l»rocity  treaty  was  in  force. 

13.  We  do  favor  the  apjilication  of  r<'ci])rocity  principles  to  future 
tariff  legislation,  and  al.io  authorizing  the  Tresident  to  negotiate  reci- 
procity treaties  with  American  countries  south  of  us. 


The  Dumont  Company,  New  Yorh  City. 

2.  Exi)orteisaml  imi)orters, and  foreign  ])ublishersof  El  Anunciador. 

3.  South  and  Central  America,  ^Mexico,  and  the  West  Indies. 

4.  Yes;  all  we  could,  but  fell  off  since  recii)rocity  was  abrogated. 

5.  Discriminations  in  shi])|)ing  and  banking  facilities. 
0.  Many,  especially  Ihazil. 

7.  Double  it  in  certain  articles. 

8.  Decreased. 

9.  Lower  by  about  20  per  cent. 

10.  By  having  direct  lines  of  steamships  and  direct  exchange,  and 
better  commercial  facilities  in  every  manner. 

11.  In  most  all  articles  of  necessity  we  can  place  better  grades  at  an 
equivalent. 

12.  Most  favorable.  If  the  ijractical  ideas  of  James  G.  Blaine  had 
been  carried  out  as  they  were  intended,  we  should  have  had  an  immense 
imitetus. 

13.  Yes;  by  all  means,  if  based  upon  Mr.  Blaine  and  his  advisers' 
ideas. 

We  need  a  bank  where  we  can  save  the  exchange  on  London.  We 
need  direct  steamshij)  lines,  with  or  without  subsidy.  And  further, 
Ave  need  a  continuous  price  list  of  goods  for  foreign  countries  without 
being  tangled  every  year  or  so  by  tariff  k^gislation ;  and  further,  we  need 
as  a  body  to  visit  these  foreign  countries  and  consult  with  them,  as 


larly  with 
very  little 

regarding 
ainpers  it 
kulatious 
lint  of  the 
n  the  case 
market  in 
igars  coni- 
I,  owing  to 
purchases 
et  vaUie  of 
;her  prices 

>ecific  duty 
en  increase 
going  over 

would  also 


)  the  exportr 
ortation  to 
at  the  reci- 

ss  to  future 
gotiate  reci- 


^.nunciador. 

dies, 
rogated. 


change,  and 

grades  at  an 

Blaine  had 
an  immense 

lis  advisers' 

(Uiddn.  We 
\nd  lurther, 
lies  without 
her,  we  need 
ith  them,  as 


I 


RECIPKOCITY    STATEMENTS. 


527 


they  did  with  us  during  the  Pan  American  convention,  and  to  send 
these  people  goods  as  they  need  tliein  and  not  as  we  make  them.  For 
instance,  if  tliey  need  an  octagonal  book,  make  itj  or  a  chair  with  iive 
legs,  make  it.  , 


FAhcrt  (t  Gardner,  Neic  YorTc. 

2.  Exporters  of  cotton-seed  oil  and  corn  or  maize  oil. 

3.  Our  business  is  exclusively  with  European  countries — chiefly 
France,  Belgium,  Holland,  Germany,  Sweden,  and  Norway. 

4.  We  are  constantly  making  eftorts  to  extend  our  trade  in  these 
countries — chielly  by  ai)i)ointing  selling  agents  at  all  larger  points  where 
there  is  some  ])romise  of  business.  Secondly,  by  furnishing  these  with 
cojtious  samples  of  the  above  products.  Third,  by  keeping  these  agents 
ad\'ised  of  market  lluctaations  here  by  means  of  cables  and  letters, 

5.  We  are  not  aware  of  any  over  discriminations  against  the  oils 
handled  by  us;  but  in  the  case  of  Germany,  which  olfers  a  large  field 
for  the  sale  of  American  cotton  oils,  r..s  well  as  maize  oilb,  the  duty  is 
certainly  excessive  in  the  case  of  ecible  cotton  oils  ujjon  which  a  duty 
of  8.^  cents  jier  gallon  of  Ih  pounds  is  assessed.  Again,  in  the  (!ase  of 
maize  or  corn  oil,  the  export  of  the  article  to  Germany  is  not  possible 
at  present,  because  the  (lerman  customs  administration  classes  this  oil 
as  among  those  "not  specilically  enumerated,"  and  levies  a  duty  of  8J 
cents  per  gallon  of  Ih  ])oun(ls.  This  duty  is  prohibitive.  IVlaize  or  com 
oil  is  not  used  for  edible  purposes,  but  in  the  manufactures,  and  it  is 
res])ectfully  suggested  here  tliat  by  due  representations  of  the  facts  the 
German  Government  may  be  induced  to  assess  corn  or  maize  oil  at  no 
higher  rate  than  nonedible  cotton  oil,  which  latter  pays  a  duty  of,  we 
believe,  2.^  to  .3^  cents  per  gallon  of  7i  pounds. 

().  The  only  important  change  in  foreign  duties  on  our  articles  has 
been  in  Germany,  where,  in  18!)4,  the  duty  on  edible  cotton  oils  was 
raised  to  8^  cents  per  gallon  of  Ih  pounds  from  3.^  cents  per  gallon. 

7.  The  removal  or  reduction  of  customs  duties  levied  on  cotton  oil  and 
maize  oil  by  Germany  and  Franco  w^ould  undoubtedly  give  the  manu- 
facture and  ex])ort  of  these  ])roductions  a  great  increase,  as  natural  con- 
ditions and  cost  of  i)roduction  favor  the  American  manufacturer  with 
anything  like  a  fair  show  in  their  selling  markets.  It  is  chieily  in  Ger- 
many and  France  where  the  reduction  or  removal  of  duty  would  bo  of 
the  greatest  benefit  to  American  interests. 

8.  Our  present  firm  was  not  in  "xistence  six  years  ago,  but  as  we 
have  been  in  this  same  line  of  business  for  many  years,  we  beg  to  state 
that  the  export  business  In  these  oils  is  larger  than  it  was  in  18JK),  but 
has  in  no  way  kept  pace  with  the  growth  of  the  inanulacturing  interests 
in  these  articles;  in  other  words,  the  domestic  distribution  in  the  case 
of  cotton  oil  has  probably  increased  50  to  (!()  per  cent  since  1890,  while 
the  increase  in  the  export  business,  chiefly  owing  to  duties  imjjosed  by 
foreign  nations,  has  been  comparatively  insignificant  and  disapi)ointing. 
Corn  or  maize  oil  ])roduction  began  only  in  1892,  so  that  no  comparison 
is  iiossible  as  regards  this  article. 

9.  '^riie  present  selling  i)rices  of  cotton  oil  are  about  17  per  cent  lower 
than  they  were  on  the  same  day  in  1890,  but  fi)r  the  entire  season  of 
1895-9(1  they  will  average  about  10  percent  lower  than  thoseof  1889-90. 

10.  We  do  not  consider  that  our  foreign  conii»etitors  have  any  advan- 
tages over  us  in  cost  of  production  or  in  transportation  charges,  except- 


528 


RECIPROCITY    STATEMENTS. 


■!,!^ 


ing  in  their  own  respective  countries  where  the  transportation  charges 
are  naturally  all  against  the  American  exporter. 

11.  It  is  somewhat  difficult  for  us  to  answer  on  this  point;  at  any  rate, 
cotton  oil  made  in  the  United  States  is  superior  to  cotton  oils  made  in 
England  or  elsewhere.  As  for  the  prices,  they  are  largely  regulated 
by  our  home  demand  for  the  oil;  and  when  that  is  supplied  we  have  to 
meet  foreign  markets  on  their  own  terms  and  i)rices  in  order  to  market 
our  surplus. 

12.  The  reciprocity  treaties  of  1890  were  favorable  to  our  line  of 
export  business,  and  we  consider  them  a  step  in  the  right  direction. 

13.  We  strongly  favor  the  application  of  the  reciprocity  principle  in 
our  dealings  with  foreign  nations,  and  especially  with  Europe,  where  our 
fields  of  operation  have  from  year  to  year  become  more  circumscribed. 


W.  E.  Grace  &  Co.,  Neio  Yorlc, 

2.  Import  and  export. 

3.  With  the  South  American  countries,  especially  Ecuador,  Peru, 
Bolivia,  and  Chile, 

4.  Yes;  by  cooi)eration  to  the  establishment  of  a  direct  line  of  steam- 
ers from  New  York  to  the  South  Pacific  Coast,  with  regular  sailings 
every  forty  days,  at  present,  which  will  be  changed  to  thirty  days  as 
soon  as  the  new  steamer  now  on  the  stocks  is  completed. 

r>.  None. 

6.  None  of  importance. 

7.  Would  increase  the  exportation  of  goods  not  produced  or  manu- 
factured in  that  country. 

8.  Larger. 

9.  Generally  lower. 

10.  Lower  wages. 

11.  American  manufactures  generally  take  first  place. 

12.  Countries  we  deal  with  made  no  reciprocity  treaties. 

13.  No. 


0.  N.  Bliss,  Neic  Yorlc. 

My  own  experience  has  been  slight.  I  would  say,  however,  that  when 
the  legislation  first  went  into  effect  we  initiated  considerable  business 
with  Brazil;  it  did  not  really  amount  tc  v^ery  nmch,  but  it  indicated 
possible  results  of  consequence.  That  business  has  declined  consider- 
ably since  the  repeal  of  the  reciprocity  legislation. 


A.  Bennett  i&  Co.,  New  York  City. 

2.  Apples,  potatoes,  onions,  oranges,  and  pineapples, 

3.  Bermuda,  Cuba,  Canada,  British  Isles,  and  Belgium. 

4.  Yes;  usual  course  buying  and  selling;  fair  success. 

5.  No  discrimination — open  to  criticism;   duties  in  Cuba,  if  lower, 
would  aid  us. 

0.  No  changes  except  in  Cuba,  where  duties  are  similar  to  those 
before  reciprocity  treaty. 


n  charges 

t  any  rate, 
s  made  in 
regulated 
ve  have  to 
to  market 

ur  line  of 
rection. 
rincii)le  in 
where  our 
inscribed. 


dor,  Peru, 

3  of  steam- 
ar  sailings 
ty  days  as 


1  or  manu- 


that  when 

e  business 

indicated 

consider- 


if  lower, 
to  those 


RECIPROCITY    STATEMENTS. 


529 


7.  In  Cuba;  no  duties,  or  lower  duty,  would  help  export  of  potatoes; 
during  reciprocity  treaty  shipments  were  very  large;  Cuba  was  our 
largest  buyer  of  American  potatoes,  exceeding  all  other  countries  by 
long  odds  easily — Cuba  10  barrels  to  1  barrel  to  others. 

<S.  Volume  as  to  packages,  about  same;  as  to  value,  safely  one-half 
less. 

9.  Prices,  apples  about  same;  potatoes,  prices  10  cents  bushel  (00 
pounds)  is  now  paid  to  farmers.  Six  years  ago  50  to  60  cents  was  regu- 
lar ])rice.  Onions  same  as  potatoes.  Trend  of  prices  is  downward. 
Traders  get  no  prolit,  conseciuently  risks  are  greater;  the  road  via  fail- 
ure is  more  apt  to  be  chosen. 

10.  Prices  formerly  were  lower  in  foreign  ccmntries;  ours  are  now 
below  all.  English  freights  are  lower  than  American  for  similar 
service. 

11.  American  apples  equal  any;  American  potatoes  and  onions,  qual- 
ity not  as  good  as  some  others. 

12.  Keciprocity  increased  the  trade  to  West  Indies  largely.  Exam- 
ple: Ward's  steamer  often  could  not  carry  all  freight  otl'ered,  even  with 
more  steiimers  running;  during  last  year  room  on  these  ships  is  more 
than  abundant,  and  steamers  are  less. 

13.  If  througli  the  application  of  reciprocity  we  escape  duty,  yes. 


Cootes  Bros.,  Philadelphia. 

As  we  are  not  "engaged  in  the  manufacture  of  various  lines  of  mer- 
chandise that  enter  into  the  export  trade,"  we  can  only  acknowledge 
your  courtesy  in  sending  us  the  inquiries  which  are  evidently  intended 
only  for  manufacturers  to  answer.  We  may  add  that  as  our  customers 
are  woolen  mills,  we  are  especially  interested  in  their  welfare,  and  that 
it  is  vital  tliat  they  be  protected  in  their  home  market.  It  is  also  evi- 
dent that  both  wool  and  woolens  are  in  a  very  depressed  condition  under 
the  Wilson  Act,  making  wool  free  and  reducing  the  duties  on  woolen 
goods,  and  unless  both  industries  soon  have  a  proper  protection,  onr 
wool  growers  will  be  ruined  and  our  manufacturers  become  continually 
more  crippled. 


Lawrence  Johnson  &  Co,,  Philadelphia. 

Our  firm  is  Lawrence  Johnson  &  Co.,  No.  209  South  Third  street, 
Philadeli)hia.  We  are  importers  and  exporters,  priucipallj'  exporting 
American  raw  products,  such  as  grain,  petroleum,  etc.,  which  we  sell 
direct  to  foreign  deaUus. 

Portugal  has  heretofore  used  American  petroleum  exclusively,  and 
also  mainly  used  American  wheat.  Quite  recently  a  treaty  has  been 
conchuled  between  L'ortugal  and  Kussia,  and  this  treaty  has  been  pub- 
lished in  a  Lisbon  newspaper,  called  Commercio  de  Portugal,  under 
date  of  February  7,  1890,  a  translaticm  of  which  article  we  hand  you 
inclosed.  Among  the  articles  specially  treated  in  this  agreement,  you 
will  note  Kussian  petroleum  is  granted  a  duty  of  40  reis  to  the  liter, 
which  is  the  equivalent  of  57  reis  i)er  kilo.  American  petroleum  has 
to  pay  a  duty  of  07  reis  per  kilo,  and  conse((uentIy  is  henceforth  to  be 
discriminated  against  to  the  extent  of  10  reis  per  kilo  in  favor  of  Uus- 
siaji  oil.  Unless  the  United  SStates  can  promptly  obtain  the  same  con- 
n.  Kei).  22(53 34 


2! 


%{\ 


530 


RECIPROCITY    STATEMENTS. 


ditioiia  tlie  PortnjEjnpso  ninrket  for  i)otrolouni  must  inovitably  be  lost  to 
American  oil.  linssia  docs  not  a]>i)ear  to  have  obtained  any  special 
concessions  for  grain,  but  there  is  no  ai)parent  reason  wliy  this  slioidd 
not  also  be  {granted,  and  thus  depilve  us  of  l\)rtu;L;al  as  a  grain  market 
also. 

As  a  principle,  we  consider  favoritism  toward  anyone  nation  (Contrary 
to  general  commercial  interests,  and  reciiiroeity  in  this  sense  should 
oidy])e  undertaken  where  fair  and  equal  treatment  for  our  prodiuits,  in 
competition  with  other  nations,  can  not  be  otherwise  oblained. 

In  re])ly  toyourreiiuest  for  general  infornnition,  we  would  say  that  we 
Jind  the  s\st(Mn  of  ad  valorem  duties,  instead  of  specific  duties,  injuri- 
ous to  trade  arid  olijectionable  for  the  following  reasons,  viz: 

First.  The  system  is  more  exi)ensive  to  the  Government  to  maintain 
a  force  to  detect  fratul. 

Second.  It  is  a  i)reniium  to  fraud,  as  dishonest  importers  profit  by  the 
system  to  the  detrinuuit  of  honest  comi)etitors. 

Third.  It  is  unfair  to  imi)orters  who  may  contract  abroad  at  low  prices 
for  large  stocks  in  adva?ice  and  who,  when  honestly  invoicing  the  mer- 
chandise at  actual  cost  to  them,  may  be  subject  to  questions  or  accusa- 
tions of  incorrect  valuation  by  customs  officers. 


Patterson,  Ramsay  &  Co.,  Baltimore. 

2.  Steamship  agents  and  brokers. 

3.  English,  Belgian,  South  AmericaT),  and  Mexi(!an. 

4.  We  are  making  continuous  elTorts  to  extend  our  foreign  trade  by 
pergonal  ai)];lication,  and  have  met  with  considerable  success. 

5.  W^e  find  a  very  serious  drawback  to  our  trade  with  l)elgium  owing 
to  resi^-ictions  which  have  been  i)ut  on  the  importation  of  American 
live  cattle  into  that  country.  These  restrictions  apply  solely,  we  under- 
stand, to  American  cattle.  Canadian  cattle  have  been  allo^^ed  free 
entry,  and  we  understand  also  that  cattle  from  the  Argentii»«  Jtepublic 
are  also  allowed  free  entry.  We  had  a  valuable  trade  in  this  bvancli  of 
business  before  these  restrictions.  We  have  made  every  etVort  through 
the  United  States  minister  at  Brussels  to  have  these  restrictions  witli- 
drawn,  and  unless  retaliation  in  some  manner  is  brought  about,  we  can 
not  suggest  any  other  means  to  have  these  restrictions  removed  by 
the  Belgian  Government. 

6.  We  do  not  know  of  any  particular  changes  in  the  tariff  of  the 
countries  which  have  affected  the  exports  of  the  various  })roducts  of 
this  country  from  this  port,  beyond  the  above  mentioned  cattle  trattic, 
and  the  abrogation  of  the  reciprocity  treaty  between  tliis  country  and 
Brazil,  which  took  effect  on  the  1st  of  January,  bSl).").  Previous  to  the 
abrogation  of  this  particular  treaty,  inimense  exports  of  flour  and  pro- 
visions were  made  from  the  United  States,  but  since  that  time  the 
exports  of  flour,  especially  to  the  i)ort  of  Bio  Janeiro,  to  a  very  large 
extent,  have  decreased,  the  Argentine  Bepublic  having  captured  this 
particular  branch  of  trade  for  Kio. 

7.  As  there  are  no  customs  duties  imposed  in  the  countries  with  which 
we  trade,  except  Mexico,  there  would,  of  course,  be  no  di,„ies  to  remove. 
As  far  as  Mexico  is  concerned,  we  do  not  think  the  customs  duties  inter- 
fere in  any  resi)ect  with  the  importations  from  the  United  States,  the 
duties  being  paid  by  the  consumers  in  Mexico. 


e  loat  to 

special 

1,  slionld 

I  market 

c.ontrary 
;>  should 
ducts,  in 

y^  that  we 
}s,  injiiri- 

niaiiitain 

lit  by  the 

ovv  prices 
;  the  mer- 
)r  accusa- 


1  trade  by 

iiiin  owing 
American 
we  under- 
o^ed  free 
Jlcpublic 
bvanch  of 
t  through 
ions  with- 
jut,  we  can 
moved  by 

Iriff  of  tlie 
Iroducts  of 
Itle  trathc, 
nmtry  and 
ions  to  the 
[r  and  pro- 
time  the 
Ivery  large 
Itnred  this 

ivith  which 
jto  remove, 
litiea  inter- 
States,  the 


RKCTPROCITY    STATEMENTS. 


531 


8.  The  vohime  of  onr  business  compared  with  that  of  six  years  ago 
has  probably  increased  about  20  to  IT)  i)cr  cent. 

0.  We  are  hardly  in  i)osition  to  answer  this  query.  "We  princi])ally 
traffic  in  freight  room,  and  the  vahie  of  this  lius  steadily  decreased  in 
its  average,  owing  to  the  excessive  competition  of  the  foreign  carrying 
trade. 

10.  Our  foreign  competitors  are  simply  the  producers,  prin('ii)ally  of 
the  Argentine  Republic,  who  resell  the  grain  and  Hour  ex])orts  in  this 
country  in  the  I'hiropean  markets,  and  thus  divert  trade  from  the 
United  States. 

11.  We  can  only  (lompete  with  foreign  countiies,  not  foreign  mer- 
chants, in  our  line  of  busiiu'ss  when  the  exporters  of  this  country  are 
able  to  compete  with  the  exporters  of  foreign  countries. 

12.  We  can  not  say  that  we  are  in  position  to  answer  this  query 
faithfully. 

l.'i.  Reciprocity  as  a  principle  is  a  good  one  in  its  way,  but  we  favor 
free  trade  mucdi  more  heartily.  Of  course,  where  the  latter  can  not  be 
obtained,  reciprocal  treaties  are  better  than  nothing. 


Kohn,  Weil  &  Co.,  N'eiv  Orleans. 

2.  Jobbers  of  hats  and  trunks. 

3.  We  sell  to  British  and  Spanish  Honduras,  Nicaragua,  (^losta  Rica, 
Guatemala,  and  in  the  free  zone  of  Mexico;  also  United  States  of 
Colombia. 

4.  We  send  price  lists  (with  illustrations),  and  traveling  agents  with 
8ami)les,  to  all  of  above  countries,  principally  confining  our  eftorts  to  the 
Seacoasts. 

5.  Naturally  the  cusroms  duties,  particularly  thoze  of  Nicarauga  and 
Costa  liica,  tend  to  operate  as  restrictions,  but  we  do  not  know  of  any 
discriminations  against  goods  from  the  United  States. 

6.  Those  referred  to  in  No.  5,  imuigurated  .January  1,  1804,  by  Costa 
Rica,  and  January  1,  1800,  by  Nicarauga,  have  greatly  diminished  our 
business,  as  some  of  the  rates  are  virtually  prohibitive. 

7.  We  think  a  return  to  former  rates  of  tariti'  would  help  our  busi- 
ness with  all  of  these  countries. 

8.  About  the  same;  perhaps  a  trifle  better. 

9.  They  are  lower. 

10.  In  hats  we  have  great  dilliculty  to  compete  with  English  and 
German  goods,  which  are  cheaper,  for  the  reason  our  American  manu- 
facturers who  supply  us  have  to  pay  import  duties  on  furs  and  on  many 
trimmings  used. 

11.  We  can  manage  to  place  some  of  our  goods  on  account  of  closer 
proximity  to  the  markets  and  originality  of  our  styles. 

12.  The  reciprocity  treaties  had  no  direct  effect  on  our  trade. 

13.  We  believe  in  a  policy  of  reciprocal  trade  relations  as  free  from 
restrictions  as  possible,  with  a  due  regard  to  protection  of  such  indus- 
tries as  require  it.  In  our  oi)inion,  all  raw  nuitcrials  needed  for  the  pro- 
duction of  the  goods  we  desire  to  sell  to  foreign  countries  should  be  free, 
80  as  to  enable  our  manufacturers  to  compete  with  all  nations. 


!  I 


;  ( 


ill 


J 

illl 


it; 


532 


EECIPKOCITY    STATEMENTS. 


S.  Oteii,  New  Orleantt. 

].  S.  Oteii;  Oteri  Central  American  Pioneer  Steamship  Line  (five 
steanuTs). 

I.  W  bolesale  im])orter  and  jobber  in  frnits. 

S.  We  deal  in  Honduras,  Nicaragua,  and  United  States  of  Colombia. 

4.  VVc  are  now  nnikinj.t  an  cllurt  to  extend  our  trade  to  Boeas  del 
Toro,  Ignited  States  of  (Colombia,  by  adding  one  or  two  more  steamers 
to  oni  line. 

5.  No;  there  are  no  customs  laws  or  otherwise  restricting  our  trade. 

6.  None. 

7.  \Ve  simply  act  as  carriers  of  goods  that  are  exported,  consecjuently 
we  are  not  interested. 

8.  J  consider  my  business  25  per  cent  larger  than  it  was  six  years  ago. 

9.  The  present  selling  prices  compareel  with  those  of  six  years  ago 
range  oO  pei'  cent  less. 

10.  The  only  advantage  foreign  importers  have  is  that  the  importers 
here  charter  steamers  nuiinly  under  the  Norwegian  tlag.  These  stea  niers 
run  with  about  half  the  expense  tluit  our  American  stean^ers  run;  that 
is,  in  the  payment  of  crews,  rations,  and  in  fact  they  are  more  economi- 
cal in  every  respect  than  the  Ameri(.'an.  Tlie  above  is  the  greatest 
obstacle  we  have  to  contend  with  in  our  business. 

II.  We  have  n;/  competion  with  Ibreigu  merchants. 

12.  I  am  entirely  ignorant  of  tiie  reciprocity  treaties  that  were  made 
in  1890,  consequently  can  not  an    ver. 

13.  Yes. 


Sussdorf,  Zaldo  &  Co.,  New  York, 


2. 
3. 
4. 


iMachinery  and  hardware. 
Cuba  aiul  Mexico. 
Yes;  with  moderate  success. 
5.  No. 

G.  In  August,  1894,  when  the  reciprocity  treaty  with  Spain  was  abro- 
gated, American  goods  had  to  i)ay,  when  entering  Cuban  ports,  a  higher 
rate  of  duty  than  otlier  countries,  but  early  in  1<S9,")  this  was  changed, 
and  we  were  put  on  the  same  basis  as  other  countries. 

7.  Very  largely. 

8.  In  Mexi(;o  about  the  same;  in  Cuba  75  per  cent  less. 

9.  They  arc  lower. 

10.  Chiefly  lower  rate  of  freights  and  longer  credits. 

11.  We  believe  we  can  compete  with  any  couutry  in  quality  and 
prices. 

12.  Most  decidedly  it  was  favorable,  and  the  repeal  of  those  treaties 
caused  by  the  changes  in  our  taritl",  princii>ally  in  raw  sugars,  was,  we 
consider,  a  very  sernnis  blow  to  the  export  business  of  this  country. 
Our  business  with  Cid)a  during  the  time  that  the  reciprocity  treaty 
lasted  was  nearly  doubled,  and  liad  it  lasted  two  or  three  years  more 
we  believe  it  would  have  reached  enormous  figures. 

13.  Certainly. 


Emilio  Puig,  Neic  Yorlc. 

I  beg  to  submit  the  following  in  connection  with  the  provision  and 
produce  trade  witli  Cuba. 
Under  the  last  reciprocity  treaty  exportations  of  flour  increased  from 


RECIPKOCITY    STATEMENTS. 


533 


Ine  (five 

olotiibia. 
ocas  del 
steamc^rs 

ur  tnule. 

ie(iuoutly 

ears  ajio. 
m&Yi^  ago 

importers 
steamers 
run;  tliat 
I  ecoiiomi- 
5  greatest 

rere  made 


was  abro- 

,8,  aliij^lier 
chauged, 


nality  and 

ise  treaties 
rs,  was,  we 
is  country. 
»city  treaty 
years  more 


ovision  and 
eased  from 


50,000  bajrs  of  200  ixmnds  each  per  annum  to  over  800,000  baps.  With 
the  cancelhition  of  this  treaty  the  volume  of  thi?  trafhc  was  reduced  to 
its  origin.al  ]>ro]K)rtions, 

Thevohimcof  corn,  beans,  and  jmtatoes  exported  also  greatly  increased 
during  the  life  of  the  lecijnocity  treaty,  only  to  fall  back  to  their  origi- 
nal liiiures  with  its  abrogation. 

The  reduction  of  duties  on  lard,  hams,  bacon,  canned  goods,  etc., 
resulted  in  a  material  increase  in  this  tratlic. 

Statistics  show  that  ex]>()rts  from  the  Uinted  States  to  (^uba  were 
doubled  under  the  reciprocity  treaty,  but  tlu'se  ligures  do  not  do  jus- 
tice  to  the  increase  in  the  jiroduce  and  provision  trade,  which  directly 
interests  the  farnu',r,  millci",  and  packer. 

I  ])elieve,  in  view  of  tlic  fritMidly  relations  at  present  existing  between 
this  country  and  Spain,  and  the  present  condition  of  allairs  in  the 
ishnid  of  Cuba,  that  a  proposition  for  reciprocity  woid<l  be  accc])table 
to  her,  as  at  i)resent  the  trade  between  the  United  JStates  and  the 
island  of  Cuba  is  all  but  i)aralyzed. 


8i(ss(lor(l'j  Zaido  &  Co.,  New  York. 

In  reply  to  your  request  of  recent  date  for  an  expression  of  opinion 
on  the  sid)iect  of  recipiocity  treaties  with  foreign  countries  vv  i)cg  to 
say  that  we  are  greatly  interested  in  this  sul)iect  and  can  hardly  think 
of  any  measure  that  can  benelit  m'.>re  the  ex])ort  trade  of  this  country 
as  a  reciprocity  treaty  snijh  as  we  had  under  the  so  called  M<',Kinley 
bill.  On  account  of  that  clause  our  busiue.;s  withOuba  was  in  a  short 
time  nearly  doubled,  and  had  it  continued  one  or  two  years  longer  we 
believe  that  it  would  again  have  been  doubled,  I'or  we  were  convincing 
them  that  this  country  could  manullicture  goods  c(pially  as  good,  if  not 
better,  than  those  nmde  in  Europe  and  at  ])rices  that  would  allow  us  to 
compete. 

We  can  not  think  of  anything  more  foolish  than  the  cancellation  of 
this  treaty,  for  the  business  of  thousands  of  Ameri(^an  houses  and  man- 
ufacturers was  badly  injured,  and  we  do  not  know  of  anyone  who 
bcnclited  by  it. 

We  therefore  close  this  letter  by  rei)eating  to  you  that  wc  are  lieart- 
ily  in  favor  of  including  a  reciprocity  treaty  claus<',  such  as  we  had 
before,  in  any  tariff  bill  tliiit  this  or  the  next  Congress  may  jjass,  even 
if  at  present  it  be  impossible  to  include  Cuba. 


Carlcton  tfc  Moffat,  New  TorJc. 

2.  Our  line  of  trade  is  in  all  idnds  of  manufactured  goods  for  exjmrt. 

3.  We  are  in  connection  with  l-'ast  India,  China,  Jai)an,  and  South 
America. 

4.  We  are  constatitly  making  etforts  to  extend  our  foreign  trade,  and 
are  fairly  successfnl. 

T).  We  are  not  aware  of  any  discriminations  that  jirevent  our  doing 
biisiness  with  any  foreign  country. 

0  and  7.  We  do  not  see  how  it  is  competent  for  us  to  attempt  to 
change  the  tariff  of  other  countries. 

10.  The  advantages  that  foreign  competitors  have  over  us  is,  that  the 


ill 


.  ii 


534 


RECIPROCITY    STATEMENTS. 


Tnw  material  is  in  almost  every  instance  Inruished  them  free,  while  ourg 
is  heavily  taxed. 

11.  We  can  e(>ini)eto  with  foreign  merchants  in  quality  and  price 
without  any  trouble. 

1^.  We  do  not  favor  the  application  of  reciinocity,  nor  do  we  favor 
any  legislative  interference  with  coninuu'(!ial  all'airs.  If  Congress  would 
give  our  inanut'acturerH  free  raw  materials  and  then  let  us  alone  to  work 
out  (»ur  own  salvation,  we  are  perfectly  capable  of  compeiing  with  all 
the  world  in  exports.  l>ut  with  the  continual  changes  brought  about 
by  special  i)ressure  of  special  interests  all  coinnu'n-ial  calculations  are 
interfered  with,  and  we  can  only  ask  the  Congress  of  the  .United  States 
to  do  as  little  legislating  for  the  "benefit"  (f)  of  business  as  possible. 
The  business  nu-n  of  tliis  country,  in  our  opini(Ui.  are  (piit«^  (!apable  of 
nuinaging  their  own  affairs  without  the  assistance  of  legislatiim,  and 
the  least  we  have  of  it  the  better. 


Walter  Carr,  New  York, 

2.  I  handle  beans,  pease,  and  dried  fruits  largely,  and  incidentally 
other  articles  too  nnnmrous  to  nu^ntion. 

3.  1  deal  directly  and  indirectly  with  the  British  Isles,  France,  Bel- 
gium, (iernumy,  Italy,  Austria-Hungary,  etc. 

4.  1  have  made  effort  to  extend  my  foreign  trade,  but  without  nuich 
success.  In  my  line  prices  are  much  of  the  time  too  high  for  export  of 
domestic  products  and  too  low  for  the  importation  of  foreign  products 
with  profit.  Customs  regulations  of  ('uba  and  uu)st  of  the  (countries  of 
continental  Europe,  notably  France  and  Gernuiny,  militate  against 
exports  of  numy  of  our  American  products  nmch  more  extensively  and 
more  profitably.    Remedy:  lieciprocity. 

G.  Senseless  German  regulations  recjuiring  chemical  tests  of  our 
American  evaporated  ai)ples  have  interfered  considerably  with  the 
export  of  that  article  to  Cermany,  where  there  is  extensive  consump- 
tion for  our  ap])le  ])roduct.  Can  not  speak  intelligently  of  other  obsta- 
cles to  the  extension  of  thi"^  branch  of  exports  to  Germany,  save  tliat 
the  i>rotection  class  there,  :  .  here,  are  doing  all  they  can  to  reap  tariff 
benefits  at  the  cost  of  the  masses. 

7.  I  am  of  o])inion  that  proper  treaties  of  reciprocity  between  this 
country  and  the  VV'est  Indies,  the  countries  of  Central  and  South 
America,  and  of  continental  Europe,  would  greatly  increase  business 
in  my  line.  The  same  would  be  true  of  the  American  British  Posses- 
sions and  also,  in  some  respects,  of  Great  Britain. 

8.  JNly  business  in  my  special  lines  is  not  quarter  what  it  was  six 
years  ago,  due  largely,  iu  my  opinion,  to  unwise  tariff  legislation  and 
protection  run  mad.  What  is  true  in  my  case  is  also  true  of  hundreds 
of  merchants  iu  this  city  to  a  greater  or  less  extent. 

No  important  tariff  legislation  of  value  enacted  by  the  McKinley 
bill  occurs  to  me  at  the  moment,  save  the  recii)rocity  clause,  injected 
after  conferring  with  Mr.  Blaine,  and  none  by  the  so-called  Wilson  bill, 
save  that  of  ])utting  wool  on  the  free  list.  The  Wilson  bill  did  immense 
harm  to  my  line  and  many  others  by  repealing  the  reciprocity  features 
of  the  McKinley  bill.  Of  course,  both  bills  contributed  nuiny  minor 
benefits,  and,  at  same  time,  burdened  the  producing  masses  of  this 
country  Avith  evils  too  numerous  to  describe  in  brief  This  was  partic- 
ularly true  of  the  McKinley  law.     It  threw  much  of  our  commerce  with 


RECIPROCITY    STATEMENTS. 


535 


lile  ours 

(1  price 

e  favor 
8  would 
t(»  work 
with  nil 
it  about 
ions  are 
il  States 
)()ssil)lo. 
pable  of 
ion,  and 


dentally 

nee,  r>el- 

»ut  much 
ixport  of 
products 
mtries  of 
a}>ainst 
vely  and 

of  our 

with  the 

unsunip- 

er  obstii- 

ave  I  hat 

up  taritf 

'<>en  thia 
South 
business 
Posses- 
was  six 
tion  and 
lundreds 

[cKinley 
injected 
son  bill, 
mniense 
features 
y  minor 
of  this 
partio- 
rce  with 


Europe  and  Cainida  into  intolerably  uninitural  conditions.  Our  tarilY 
relations  with  otlier  countiies  are  in  such  a  mixed  and  unnatural  state 
that  there  seems  to  be  no  remedy  that  would  give  lai'^ii  and  (piick 
relit'f.  Incrt^ased  protection  would  be  like  undertaking  to  cure  a  man 
who  has  been  drunk  thii-tyfive  years  by  giving  him  increased  supplies 
of  ah'oiiol,  and  a  great  reduction  of  duties  all  at  once  would  operate  to 
])rostrate  the  same  as  depris  ing  such  a  drunkard  of  all  ah'oiiolic  stim- 
ulants at  one  stroke.  The  only  remedy  thai  occurs  to  me  is  to  apply 
reciprocity  as  fast  as  |»ossib!e  wliwever  it  will  least  impair  revenues, 
and  when  customs  revenues  are  not  enough,  provide  new  ways  and 
means,  but  not  l)y  issuing  bonds  of  indebtedness. 

y.  Prices  in  my  line  and  many  otheis  have  not  been  so  low  and 
de])ressed  since  I. SOP.  1  think  about  half  what  they  were  six  years 
ago,  on  an  average. 

10.  Question  lt>  seems  to  me  to  involve  too  nnich  to  answer  in  brief, 
1.  e.,  if  I  understand  it.  If  it  means  our  European  competitors,  who 
are  pushing  their  wares  where  we  \v*>ul(l  like  to  push  ours,  cheaper 
labor  may  enter  into  some  things  (not  all),  better  shipping  law\s,  tariff 
rebates  given  by  our  (Jovernment,  and  (dder  and  better  perfecteil  busi- 
ness relations. 

11.  In  my  line  we  can  furnish  much  belter  (puility  than  Kurope,  and 
as  low  i)rices  as  any  country  in  the  world,  (juality  considered.  What 
we  want  is  an  enlarged  demand.  There  are,  however,  years  when  crop 
conditions  here  and  abroad  may  reverse  the  usual  order  of  things  in 
these  c(Muiections. 

12.  The  elfect  of  the  reciprocity  treaties  of  181)0  was  very  favorable  to 
the  export  trade  of  the  United  States;  the  repeal  of  tliem  unfavor- 
able, especially  so  with  Cuba,  and  would  be  just  as  noticeable  with 
South  American  countries  if  we  had  in  the  past  i)ushed  our  shipping 
and  trade  relations  with  them,  as  we  might  and  juobably  would  have 
done,  only  for  being  handicapped  for  several  decades  by  bad  tariff  and 
shipping  laws,  making  our  wares  and  freights  too  high  to  compete  with 
Euroi)e.  Cuba  is  a  large  market  for  our  American  beans  and  j>ease,  but 
since  the  repeal  of  the  recii>roiuty  treaties  the  high  Si)anish  duties 
have  reduced  the  business  to  a  very  unimportant  volume.  The  Cuban 
wai'  disturbances  luive  no  doubt  contributed  somewhat  to  the  impair- 
ment of  trade. 

13.  To  (question  13  I  answer  yes,  most  emphatically. 


East  India  Trading  Company,  Portland,  Oreg. 

2.  Imports:  Colfee, tea, spices, tapiocas, rice, drugs, furs, etc.  Exports: 
Flour,  lard, dried  fruits,  tind)er,  etc.;  but  it  is  mostly  an  ini]»ort business. 

3.  India,  Ceylon,  Dutcii  Indies,  Straits  Settlements,  China,  .Japan, 
central  and  west  coast  South  American  Itepublics. 

4.  Yes,  in  the  countries  mentioned,  principally  by  correspondence. 
With  success,  but  one  member  of  the  company  had  previously  lived  for 
a  considerable  time  in  the  Indies. 

5.  ^ot  as  regarils  countries  at  a  distance,  but  such  exists  in  our  busi- 
ness relations  with  Canada.  There  is  a  discriminating  duty  of  10  per 
cent  on  all  coffees  and  teas  which  are  sent  from  the  United  States  to 
Canada,  whereas  there  is  no  duty  charged  on  coffees  and  teas  imp(»rted 
into  the  United  States  from  Canada.  This  enables  Canadian  merchants 
and  brokers  to  sell  those  goods  here  on  the  same  footing  as  if  they  were 


536 


RECIPROCITY    STATEMENTS. 


sellings  ill  tlioir  own  country,  wliilc  the  mercliants  here  are  proliibitert 
altogether  from  selUng  those  goods  in  Canada.  This  seems  to  us  most 
unfair,  and  onght  to  be  remedied. 

8.  ilave  been  in  business  only  about  four  years.  Our  trade  has  been 
gr,;^  Ay  iiK^reasing,  ^)ut  the  commercial  depression  has  made  it  imjjos- 
sible  to  niak'3  as  much  i)rogress  as  would  have  been  made  Lad  times 
been  normal. 

9.  Prices  are  all  lower. 

11.  In  many  articles  of  expert  can  not  comjiete. 
1.'5.  Yes. 


WiUiamti,  Richardson  tO  Co.,  Xeic  (h'kans,  La. 

2.  Wholcnale  dry  goods  and  notions. 

3.  Htniduras  and  British  Honduras. 

4.  No. 

5.  Nf). 
13.  Yes. 

Tliis  house  made  an  etTort  ten  yenivS  ago  to  develop  trade  Avith  the 
countries  lying  on  the  (!ulf  of  iMexico,  sending  a  traveler  to  ^Mexico, 
Honduras,  British  Honduras,  Guatemala,  and  Colombia.  The  enter- 
prise was  unsatisfactory  and  resulted  in  heavy  loss.  Our  experience 
is  that  nKMchants  in  those  countries  donot  Avish  to  trade  upon  the  terms 
given  ihose  at  home;  they  do  not  know  what  it  is  to  ])ay  bills  at  matur- 
ity. They  exjject  to  buy.  to  pay  with  shipments  of  produce  or  exchange 
at  sixty  days,  witlumt  regard  to  maturity  of  bills;  to  ])ay  interest,  or 
rather  lo  have  interest  ehaigcd  them  at  tlie  end  ol'  each  year;  and  so 
on,  ad  inlinitum.  They  thiid<  if  they  consent  to  a  charge  of  interest 
th«'y  may  go  on  indetinitely  buying,  rendtti rg  less,  and  never  settling 
to  a  point.  This  they  have  been  allowed  t*;  do  by  their  Ihiropean  cor- 
res])ondents,  who  are  cont"nt  with  (>  per  cent  interest ;  and  they  (^an  not 
understand  why  .Vmerican  houses  are  not  satisfied  to  do  likewise. 

Our  ex])e>'ience  was  unsatisfactory:  we  no  longer  solicit  trade  from 
Spanish  America. 


W.  Loaiza  »(•  Co..  Kriv  York,  K.  Y, 

2.  Commission  mcrctliants. 

.'i.  Mostly  with  Mexico  ami  a  little  with  (Inatemala,  Salvador,  and 
Costa  liica. 

4.  Yes;  by  traveling  through  those  countries  once  a  year. 

5.  We  know  of  no  disciiminations  or  obstacles  in  tlie  laws  or  customs 
regulations  in  any  of  the  countries  mentioned  that  restrict  or  prevent 
the  extension  <(f  our  trade.  It  is  of  <!ourse  necessary  in  trading  with 
them  to  obtain  and  study  their  customs  regulations  in  order  to  comply 
wii  h  them ;  failure  to  do  so  is  tiie  cause  ol'  lines,  etc.,  so  fre(|uently  com- 
plained of  by  parties  who  are  not  even  aware  of  the  fact  that  such 
knowledge  is  reipiired  and  such  tines,  etc..  imi)osed  by  the  customs  laws 
of  this  couiitiy  itself. 

0.  We  know  of  no  special  changes  in  the  tariffs  of  the  countries 
mentioned;  modifications  are  taking  place  constiintly  under  Treasury 
decisions,  but  these  do  not  modify  the  tariff;  they  sinply  clear  iloubtful 
points. 


hibitert 
IS  most 

iis  l)een 
:  iuipos- 
:l  times 


with  the 
^h'xic'o, 
ic  euter- 
pei-ieuce 
he  terms 
it  matar- 
'xcliaiige 
terest,  or 
and  so 
interest 
settling? 
)eun  cor- 
V  ean  not 


ist 
h 


uU'  from 


iilor, 


and 


enstoms 
|)r('vent 
inj;'  with 
)  comply 
itly  coin- 
lai;  sinh 
DMishiws 

•onntries 
rreasnry 
doubtful 


RECIPROf;iTY    STATEMENTS. 


537 


7.  11  tlie  removal  or  reduction  of  tlie  customs  duties  a])i)lied  to 
Ami'ricnn  goods  only,  our  export  trade  would  naturally  be  greatly 
ai(b'd  and  extended  in  the  goods  so  aft'ected,  but  if  the  removal  or 
redn(;ti()n  were  general  the  extension  would  be  (jUestionable. 

*>.  Prices  of  American  goods  are  generally  lower  than  six  years  ago. 

10.  Our  foreign  competitors  have  the  advantage  over  us,  tliat  on  a 
})arity  of  cost  they  get  the  orders  on  account  of  tlie  greater  lacilities 
they  give.  Furtheimore,  Ireiglit  from  Livev])()o],  Hinnburg,  or  llavi-e 
to  the  countries  Ave  deal  with  are  mucli  lower  than  from  New  York. 
For  instance,  freight  on  various  ivinds  of  goods  from  Liveri)ool  via 
Tanama  to  the  l'a<iH<'  ])orts  of  Central  America  is  50  shillings  (slli.oO), 
and  irom  New  York  on  tin;  sanu^  goods,  also  via  I'anama,  *li'J  to  ^I'O  ])cr 
ton,  so  that  it  is  (piitc  ]iracti(*ablc  to  ship  g(M)ds  I'rom  here  to  Liverpool 
and  thence  to  the  I*a(;illc  Coast  via  Panama  cheaper  than  direct  from 
Kew  York  to  Panama.  An<l  as  a  matter  of  fact,  certain  yootls  which 
can  not  be  had  in  l^uro])e,  and  hav(^  of  necessit.y  to  be  bongiit  here,  arr 
regularly  shii)ped  fi-om  here  to  naiid)urg  by  steamer  and  thence  ])f. 
sail  via(/a])e  Hoiii  at  a  saving  of  50  per  cent  on  the  cost,  througli  th.. 
chca])er  freight  thus  secured.  It  can  tiierefbre  b(>  readily  understood 
that  merchants  in  the  countries  mentioned  prefer  to  buy  in  Europe,  ami 
o)dy  buy  heie  what  they  can  not  get  there,  or  wiiat  is  so  mucli  suix'rior 
or  more  suitable  to  their  needs  that  they  are  comja'lled  to  get  it  here  iu 
sjiite  f)f  themselves.  Whenever  an  American  articles  '-takes"  sampUiS 
are  sent  to  ICuro]»ean  correspondents  with  ])ric<\s,  etc.,  for  imitation,  and 
it  is  only  wlien  thoroughly  convinced  that  the  article  can  not  bi^  dupli- 
Ci  t(Ml  there  at  saine  cost  that  tliey  give  ui)theetfort.  Thiselfort  is  not 
dictated  ])y  ])rejudice  to  America  or  things  Anu'rican ;  it  is  simply  a 
iniitter  of  commercial  convenience.  If  bought  here  ^layment  has  to  be 
nia<le<'asli  or  within  three  or  f»uir  months  at  the  most;  if  bouiiht  in 
Europe  pa\  nient  can  be  made  in  from  six  to  twelve  months. 

Then  again,  the  jmrchase  in  llurope  is  ])refei'red  because  the  iincking 
of  goods  is  attended  to  with  all  theciire  re(|iiisite.  Thei  e  are  phices  on 
the  Pacific  Coast  wlu're  goods  are  landed  tlirough  the  surf  in  Hghters. 
IMeri'hiindise  destined  to  thos(^  ports  must  be  pa<'ked  in  well  sohler<'d 
tin-lined  cases.  Many  manufacturers  liere  ])refer  to  lose  sales  ruther 
than  bother  Avith  the  i»acking  recpiired.  And  as  a  general  rule  Amer- 
ican is  so  much  infei'ior  to  lOuropenii  ])nck'ing  that  when  cargo  is  being 
transferred  from  the  st<'amei's  to  the  lighters  by  their  sorry  apjiearance 
it  is  easy  to  distinguish  AnuM'ican  froin  I'hiropean  jjackages.  I'ntil 
Americiin  manufiicturers  givi'  p;icking  the  iiii])ortance  it  deserves,  it 
will  continues  lo  be  one  of  the  most  seri(»us  draw  l):icks  to  the  extension 
ol"  the  ex])ort  trade  with  the  countries  inentioiu'd. 

11,  From  the  foregoing  remarks  it  will  Ix^  seen  that  Ave  cnn  onlycom- 
l)eteAvith  foreign  mer<'hants  ii)  jis  far  as  American  goods  tlirough  some 
peculiarity  of  supeiioiity  unattainable  by  European  manufacturers 
force  our  clients  to  buy  heie. 

l.'i.  \\'lier<'  positive  reciprocity  can  be  (>ntered  into  n(^  doubt  a  hirge 
trade  couhl  be  develojied,  but  in  cmr  o])inion  no  special  extension  can 
be<'X]iected  until  American  nuinufactun'rs  themseh cs  will  pay  as  much 
s))ecial  atlcnti<»n  t(»  the  reiiuirements  oC  the  e\i>ort  trade  as  do  tli"ir 
Enro])ean  com]tetitors,  \\'(^  believe  the  only  help  the  Government  can 
give  is  in  seem  iiig  trans|)oitation  facilities  so  thai  our  rates  «d'  freight 
shidl  be  Hit  higher  that  tiiose  from  liiverpool. 

Wo  may  ad<l  that  in  Eui'0])e  comndssion  merchants  enjoy  peculiar 
banking  faciliti<'s  that  euiible  them  in  turn  to  <xtend  Iheir  export 
trade.     Bankers  there  will  imike  advances  on  lime  drafts  against  ship- 


>-3 

'I. 


u« 


538 


RECIPKOCITY    SrATEMENTS. 


nu  nfs  to  foreign  cou.itiics.  Here  tlu'  coiniiil.ssioii  inercliant  lias  to 
carry  liis  adviuices  iiiniself,  and  liasiu  .  ssarily  to  limit  his  trausaetioiis 
to  liis  own  resources.  Ail  these  remaiks  could  hi',  extended  consider- 
ably by  enterinj;'  into  details,  hut  we  do  not  think  it  lUM-essary.  We 
desire,  h(i\ve\er,  to  call  s[)ecial  attention  to  the  (act  that  tiiis  reply  is 
ai)i)H(ahh'  only  to  .M»;xico,  Guati^nala,  Salvador,  and  Coslaliica;  and 
we  say  this  hecause  one  of  tlie  worst  ti'ouhles  w(^  contcMKl  with  is  tliat 
niany  nianul'acturers  here  believe  that  what  is  suitable  to  iJuenos  Ayre^ 
must  be  the  very  thing'  wanted  in  \'era  Cruz. 


Adams  <l:  Jhntiiis^  Ncic  York,  X.  Y. 

Our  business  lor  the  past  eighteen  j'ears  has  been  largely  with  Cuba. 
Our  experience,  therefore,  extends  not  only  over  a  nunil)er  of  years 
before  reciprocity  with  that  islaiul,  but  through  that  period  and  since. 

Tlie  vei'y  large  increase  of  our  exports  during  tln^  time  the  treaty 
was  in  force,  and  tiie  (h'cicb'd  and  iniincdiate  falling  otf  as  soon  as  it 
expired,  leaves  no  (piestion,  in  our  opinion,  as  to  the  great  advantages 
of  leciprocMty. 

The  henclits  of  reciprocity  with  certain  countries,  as  shown  by  tlie 
experience  with  Cuba,  we  considcir  <on\incing  evidence  that  it  would 
be  a  wise  busin(>ss  move  on  the  part  of  this  (Jovernmcnr  to  extend 
reciprocity  to  all  countries  south  of  us  whicii  export  raw  products  of 
which  we  buy  largely,  and  which  in  turn,  ha\ing  no  manufacturing 
interests,  wouhl  taU(^  our  merchandise  in  exchange. 

We  can  m)t,  however,  see  where  reciiu'itcity  would  bcnelit  us  with 
European  countries,  as  they,  like  ourselves,  are  searching  for  an  outlet 
for  their  manufactured  products. 


Lanman  d'  Kfiup,  .\eir  York-,  X.  Y. 

Replying  to  your  circular  lettei-  of  the  4th  instant  relative  to  ])ro- 
posc(lrecii)rocal  conventions,  we  would  state,  that  as  merchants  engaged 
in  tiu'  g(!neral  import  and  exi)ort  trade,  and  largely  in  the  manufacture 
of  propi  ietary  articles,  we  deal  with  almost  every  country  in  the  world. 
We  strive  to  sustain  and  enlarge  our  business  by  very  liberal  expendi- 
tures in  advertising;  by  sending  comi>etent  travelers  everywhere; 
acquainting  ourselves  with  the  rc(iuircments  (if  ea<di  counl ry,  and  by 
exercising  all  the  knowledge  and  experience  accpiired  in  a  career  extend- 
ing ba»'k  to  the  first  decade  of  our  »:eutury.  This  brielly  answers  your 
tirst  four  oucstions. 

■A 

o.  We  can  not  recall  any  discrimination  m  the  way  of  customs  regu- 
lations specially  directed  against  our  trade,  but  many  of  the  countries 
have  customs  ;ind  consular  legulations  (»f  such  intricate  character,  and 
Bubjectiiig  shippers  to  such  exactions  and  heavy  lines — for  which  th.y 
seem  purposely  designed — that  they  can  not  but  restri(;t  trade.  Ifdov- 
ernment  agents  wtnild  acquaint  Ihemselves  w ith  these  matters,  which 
they  could  easily  do  by  conferring  with  (he  merchants  of  this  city  and 
visiting  the  consulates,  it  seems  to  us  that  <tur  (Joveinment  might  seek 
the  removal  (tf  these obslach's  by  appeal  to  the  (iovernm«Mits  concerned. 

(I.  Of  recent  chan|ifes  in  tarill's  atfecting  <uir  trade  seriously,  we  nmy 
uiention  Ecuador,  Brazil,  Si)ain  and  colonies.     In  Ecuador  the  duties 


iinn 


[t  has  to 
nsaetioiis 
(;oiisi(k'r- 
ary.  Wo 
is  roi)ly  is 
lica;  and 
rh  is  that 
10  s  xiy^■e^ 


iMtli  Cuba. 
•  of  yea IS 
and  since. 
tlic  treaty 
soon  as  it 
dvautayes 

wii  by  tlie 
t  it  would 
to  extend 
>roduets  of 
ufacturin^' 

lit  us  with 
r  au  outlet 


ve  to  pvo- 
lsen<;'a,u'»'d 
mufaeture 

he  world. 
(^\pen(ii- 

'rywheie; 

y.  and  l>y 
■erext('ii(l- 
iwers  your 

Lonis  re.uu- 
eountvies 
actcr,  and 
,hich  tli.y 
If  (lov- 
ers, wliii'h 
city  and 
ni;;ht  seelc 
Lionccrnvd. 
y,  we  may 
the  duiieB 


RECIPROCITY    STATE^IENTS. 


539 


were  enormously  advanced,  practically  shutting  out  medicinal  and  toilet 
l)rei)aratior,sand  other  jnoducts.  The  sanu'  hasjust  hapixMied  in  IJrazil, 
where  duties  have  in  many  instances  been  increased  tenfold.  In  almost 
every  South  and  Central  American  country  souui  increase  has  taken 
place. 

7.  ModiJications  of  these  duties  would  greatly  benelit  us.  At  present, 
iu  order  to  retain  our  trade,  we  are  forced  by  the  exhorbitant  duties 
abroad  to  manufa<!rure  in  forei.un  countries,  notably  S]tinn,(Juba,  Argen- 
tina, Uruguay,  Drazil,  and  iVlexico.  This  not  only  necessitates  iui  enor- 
mous outlay  of  capital  and  reduction  in  ]>rotits,  but  deeentrali/.es  our 
business  and  reduces  our  three  of  employes  here. 

S.  The  volume  of  our  l)usiness  has  deidined  siinte  six  years  ago,  due 
to  these  taritf  troubles  princii)ally,  but  also,  in  some  measure,  to  the  fall 
in  silver,  wiiicli  crippled  tradeiu  India.  China,  Japan,  and  Latin- Amer- 
ican (iountries,  iuul  aiso  to  revolutionary  troubles. 

9.  Prices  for  exjtort  are  generally  lower  than  six  yinirs  ago,  nianufac- 
tuiers  ha\  ing  to  sell  ehea])er  in  order  to  ecunpete  with  Europeans. 

10.  Our  foreign  com])etitors  havethci  advantage  of  cheaper  labor  and 
vastly  superior  tiansj>ortation  fa<;ilities,  in  fact,  we  are  fre(|uently 
compelled  to  make;  shii)nu!nts  to  South  America,  by  way  of  llaml)urg 
and  other  l-hiropeau  i)orts,  because  the  rates,  even  by  sneh  rountlabout 
wa.y,  are  lower, 

11.  In  (piality,  we  excel:  in  prices  of  many  articles,  we  can  hardly 
compete  with  foreign  jiroducers. 

12.  Tlui  general  ei'i'ectof  the  reciprocal  conventions  of  ISiK)  was,  in  our 
opinion,  unfavorable  to  the  trade  of  this  country.  While  the  exports  to 
certain  countries  of  favored  j)roducts,  sucii  as  breadstulfs,  machinery, 
et<'.,  may  have  inc.easc^d,  the  reverse  was  the  ease  with  all  other  arti- 
cles,the  reason  of  this  being  the  hostility  engi.'udered  in  many  (piarters 
and  the  necessity  under  which  the  treaty  nations  were  of  incieasing  the 
duties  on  i)rodncts  not  favoicd,  for  it  must  be  bonu' in  mind  tliat  tlie 
Latin- American  nations  are  almost  wholly  dejiendeiit  on  customs  duties 
for  revenue,  and  if  <l(^prived  of  thes«'  on  such  leading  imports  as  bread- 
stuffs  they  must  make  other  products  bear  the  burden.  The  treaties, 
we  have  reason  to  believe,  were  not  genei'ally  popular,  although  ap|»ar- 
ently  entered  int(»  with  spontaiunty  by  some  of  the  nations,  many  of 
them  feciiing  tliat  they  were  forced  by  fear  of  adverse  discrimination  (»r 
of  stenung  disregard  for  this  greater  nation.  Had  Bra/.il,  which,  we 
believe,  subsetjuenl  Iv  regretted  its  pieeij)itaney,  not  volunteered  to 
makefile  tirstof  lli  reciprocity  treaties,  it  may  bi'  doubted  whel her 
other  countries  woidd  not  have  lield  aloof,  which  oidy  entered  beirause 
they  lea!  ed  tliat  l>ra/.il,  with  its  itreiiondeiant  production  of  colfee  and 
great  i>i  -;ibiiities  for  ])i'odueiion  of  sugar,  wouhl,  it'  alone  fa  von-. I, 
greatly  ii  uro  them.  As  evideiu'c,  of  the  discontent  aroused  in  lira/il, 
we  hav«<  t'l  •  report  of  oui-  traveler,  who  conversed  on  the  sid)ject  with 
merchants  >  iiere  and  who  was  in  IJiowhen  it  was  propose<l  in  the  Senile 
to  repeal  the  tr«'aty.  Some  of  the  countries  entered  reluctantly,  and 
with  no  kiinlly  feelings.  ( Uhers,  like  Vene/iU'la,  Colombia,  an<l  lleiia- 
dor,  wheri^  friendliest  feelings  prevail  for  the  Cnited  States,  becaiis(5 
tluiy  ccuild  not  uuike  the  sacriliciHlemanded,  were  discriminated  against, 
with  tlie  result  that  trade  was  diverted  to  lliirope.  and  it  will  be  a  l<<iig 
time  betbre  it  linds  its  way  back  to  us.  .\iid  no  little  feeling  <ietri 
mental  to  (uir  trade  was  also  created  by  tlu'  appai'cnt  favor  shown  to 
such  countries  as  Mexico.  Argentina,  and  others,  wliieh  weie  not  »lis- 
eriminated  against,  despite  thefai-t  that  they  (h'cliiied  to  make  (leaties. 
This  partiality  was  as  much  resente«l  by  the  countries  whi«li  made 


if 


540 


RECIPROCITY    STATEMENTS. 


trcatios  as  by  tliose  wliicli  -were  litirslily  singled  out  for  discri  mi  nation. 
TIm'  repeal  of  tlie  treaties  lias  not  improved  mattei's,  as  the  removal  of 
favoi'  from  <;ertaiii  products  lias  not  been  aci^ompanied  by  reduction  of 
tlie  duties  which  we)e  raised  on  others.  Thus  the  evil  (^fleets  of  the 
treaties  survive  their  reiteal. 

1."..  For  the  reasons  above  given  we  are  o])posed  to  reci[)ro<'al  con- 
ventions which  can  only  benefit  c<*rtain  i)roducts  at  the  expense  of 
others,  which,  i^erhaps.  need  encouragenuMit  moie. 

While  it  may  not  be  ])ertinent  to  the  subject,  we  wish  to  say  that 
instead  of  su<!h  reci])rocity,  which  sows  as  much  discord  as  harmony, 
and  only  opens  one  door  to  close  another,  it  Avould  seem  prefeiable  to 
restore  the  duties  on  cofi'ee,  tea  and  opiun),  and  other  arti<!les  now  on 
tlx'  free  list,  the  removal  of  wldeh  has  been  of  benefit  to  the  foreign 
jnoducers,  but  of  little  advantage  to  the  consumers  here,  being  ])r()d- 
ucts  which  can  bear  taxation  without  burden,  an<l  which  <an  produce 
large  revenue. 

As  you  invite  suggestions,  we  would  recommend  as  a  nu^ansof  develop- 
ing our  home  industries  and  <meouraging  the  export  of  manufactured 
goods,  that  the  duties  on  raw  materials  be  removed  so  that,  pitting  our 
skill  against  the  chea])  laborof  l''uro])e.  we  maybe  ])ut  in  a  position  to 
c()m])ete  in  H])anish-American,  Asiatic,  and  other  markets  with  foreign 
mjinufacturers.  Thus  labor  and  ca])ital  would  find  here  ])rofitable 
employment. 

r.  S. — W*'  observe  that,  in  responding  to  your  .circular,  the  National 
Association  of  Manufacturers  of  Philadelphia  a(h  o(!ate  the  recii)rocity 
treaties  "because  treaties  of  thischaraeter  aie  l)eingor  have  been  nego- 
tiated between  Kuro])ean  governments  ami  nations  to  the  south  of  us, 
to  the  detrimeid.  of  our  commercial  interests  abroad,"' 

We  have  never  heard  of  such  treaties — conunercial  treaties — yes — but 
as  our  treaties  with  the  same  c(mntries  in  almost  all  instances  grant  us 
tlnvlavored  nation  i)rivileges,  we  do  not  see  where  the  detriment  to  our 
interests  comes  in. 

We  certainly  siiould  iiave  commercial  treaties  Avith  those  countries, 
and  l)y  su<*h  treaties  and  all  <»ther  ways  cultivate  good  relations  witli 
them  :  but  we  should  aAoid  all  a])])earan<'es  of  compulsion.  If  rt'ci]>ro- 
cal  concessions  are  to  be  nuide  tlK>v  should  be  by  tnutinil  and  pleasant 
anangenu'uts,  and  not  by  one  of  tlie  ])arties  stipulating  at  the  outset 
that  certain  penalties  will  follow  if  certain  privileges  are  not  granted. 


(rlnnr  <(•  (hlonhihl,  Xeir  ()rlc(()ts\  La. 

There  is  no  doubt  whate\  ei'  that  reciprocity  is  the  true  iirineipio,  and 
in  fact  the  only  true  principle,  for  the  advancement  of  the  agricultural 
and  industrial  interests  of  the  United  States.  All  other  measures, 
such  as  duties,  etc.,  may  bring  forth  an  imi)rov(Miient  in  certain  lines 
for  a  certain  ]»er'od,  but  they  carry  with  them  unfavorable  reaction  on 
other  commodities  at  diU'erent  times.  True,  recii»rocity  is  based  on  the 
actual  principle  of  barter,  and  barter  means  in  so  many  words:  1  will 
sell  you  a  barrel  of  flour  lor  Its  <'(iua]  value  in  sugai',  and  you  give  my 
flour  the  same  or  relative  i)ri\ilege  that  I  give  your  sugar. 

The  moment  this  ])rin<'i|de  ot  reciprocity  is  vigoiously  developed  (it 
will  rcMjuire  line  diplomatic  work  and  some  few  years  to  do  it),  it  will 
ojien  the  world  to  the  suri»lus  of  our  agricultural  i>roductious  and  will 
increase  the  output  of  our  factories. 


nination. 
moval  of 
luitioii  of 
ts  of  tlie 

ociil  con- 
pen  se  of 

say  til  at 
lariiiony, 
'erablc  to 

S   Il(t\V  oil 

e  I'on'iii'ii 

inj""  prod- 

])ro(luce 

rdcvelop- 
II  fact  mod 
ittiiijLf  our 
osition  to 
:li  forciirn 
proti  table 

National 
Rci)>rocity 
(ecu  ncji'O- 
nth  of  us, 

-yes — but 

p'aut  us 

LMit  to  our 

'ouutrios, 

ions  with 

rccijiro- 

plcasant 

ic  outset 

fiianted. 


iplo,  and 
licuitural 
incasuie3, 

ain  lines 
■action  on 
H'O  on  the 
ds:  1  will 
11  fjive  my 

eloped  (it 
it),  it  will 
s  and  will 


RECIPROCITY   STATEMENTS. 


541 


If  Congress  could  see  its  way  clear  to  adopt  this,  I  tirndy  believe  that 
this  i)olicy  would  slioitl>  i)roduce  a,  wholesome  and  healthy  imiuovemeut 
in  all  branches  of  business. 


LanrKN  Loomis,  Cdtliii  d;  Co.,  Neir  York  Citi/. 

2.  Cotton  }>'oods. 

3.  lirajcil,  Venezuela,  Colombia,  Central  xVmerica. 

G.  None,  eyept  <^he  advance  in  duties  that  has  taken  place  sine*'  the 
abrogation  of  the  recij)rocity  treaties. 

7.  The  removal  or  re<luction  of  customs  duty  would   increase   the 
volume  of  oui-  trade  very  largely. 

8.  About  the  same  as  then. 

9.  Lower. 

12.  Increased  the  trade  very  largely,  ])articularly  in  cotton  goods. 
J3.  Yes,  under  the  general  i)rinciples  of  the  late  James  (i.  iJlaine. 


Arkell  tO  IhnKjlms,  New  York. 

1.  Our  lirm  name  is  Arkell  v\:  Douglass,  1)5  IJroad  street,  New  York 
City.  We  have  branches  at  Loiulon,  England;  Sydney  aud  Melbourne, 
Australia,  and  Port  ICli/abeth,  Soutli  Alrica,  all  under  the  same  name. 

1'.  Our  business  end»races  the  exporting  of  all  and  every  class  of  mer- 
chandise which  is  sent  Irom  this  country  in  the  directions  that  we  spe- 
cially deal  with,  and  we  might  say  that  most  classes  of  American  goods 
go  abroad,  although  in  some  cases  the  (juantity  is  small. 

3.  Our  dealings  are  princii)ally  with  Australia,  New  Zealand,  and 
Tasmania,  and  with  the  (sntire  South  x^.irican  colonies,  which  inchides 
Cape  Town,  Port  Elizabeth,  l*<»rt  Natal,  Kast  London,  and  Delagoa 
Day,  including  tlii^  back  couidry,  and  the  Transvaal;  we  aNo  export  to 
the  (lold  Coast.  We  do  more  or  less  South  American  trade,  but  to  no 
very  large  extent. 

4.  Our  etforts  are  continually  exerted  toward  an  increase  of  our  for- 
eign business  through  the  establishing  of  our  own  house  where  the 
trade  is  sutlicient,  and  the  sending  of  tra\elers  throughout  the  sect  ions 
we  deal  with,  showing  samples,  and  thus  taking  orders  and  introducing 
new  goods.  P>y  this  means  we  have  opened  up  tor  American  manufac- 
turers the  introduction  of  many  new  lines,  and  have  been  fairly  success- 
ful in  enlarging  and  increasing  the  business. 

r>.  In  the  directions  relerred  to  above  there  are  no  special  laws  or 
customs  that  i)reve!it  the  extension  of  American  trade,  we  being  <»n  the 
same  basis,  so  far  as  the  bringing  of  goods  into  those  countries,  as  the 
other  nations  of  thewoi-ld.  Our  dealings  being,  of  c«)urse,  with  iMiglish 
colonies  neaily  (Mitirely,  there  is  naturally  somewhat  of  a  prejudice  in 
fa\()r  of  honu'  nnide  goods,  and  as  I'^nglish  capital  is  also  largely 
investe<lin  immyof  the  lirms  in  the  colonies  to  which  we  have  refei'r"(l, 
orders  liist  seek  the  home  nnirket  betbic  coming  our  way;  but  this 
could  only  be  expected.  Where,  however,  American  goods  ar(M*heaj)er 
or  o*'  better  ([uality  at  e<|ual  i)rices.  the  trade  is  not  diverted  from  us. 

({.  The  Australian  coloni;;s  being  divided  into  groujis  having  sepa- 
rate laws  of  their  of  own,  there  are  a  inimberof  dillerent  tarills — from 
practituilly  free  trade  in  New  South  Wales  to  heavy  protective  duties 


If 

H 


t 


542 


RKCIl'KOCITY    STATEMENTS. 


I 


■?■'■ 


ii 


in  Victori.!,  New  ZcMland  aiwl  other  colonics  being  seiniprotectioii.  l>ut 
as  stiitt'<l  aireiidy,  j4i>o(ls(;()iiiiiifi'  from  oMier  coiiiif  ii<'.s  |»ay  the,  .same  (inly 
as  from  here,  so  that  we  <lo  not  consider  this  any  liardsliip,  except  where 
tlie  duty  is  excessive  it  natnially  tends  to  eind)le  the  biiiiding' m[»  of 
lionn^  industries  and  the  kec])in;i-  out  gradually  of  all  classes  ol'  goods 
thai  can  l)e  made  at  home  clicaper  tiian  imported,  no  matter  wiial  the 
direction  is  from  wliich  said  goods  might  be  imimrted. 

7.  The.  removal  or  reduction  of  duties  in  the  colonies  wliere  we  deal 
woidd.  of  <'oursc.  naturally  d  )  away  with  likely  home  comitctition.  and 
thus  eiuible  larger  amounts  of  American  goods  to  go  into  said  markets; 
l)ut  this,  again,  would  be  e(]ually  in  favor  of  other  nations  as  our  own, 
and  so  W(»uld  lend  to  ben(^tit  all  e((Ually,  and  would  be  no  special  gain 
to  this  country  excepting  for  the  reason  si)ecilied. 

S.  The  volume  of  business  to  the  <'oIonies  named  has  increased  vvvy 
largely  during  the  past  six  years,  and  our  ])roportion  of  the  total  has 
been  i»roi)ortionately  in(ireased.  In  the  case  of  South  Africa,  to  be 
more  clear,  Ave  think  the  trade  has  more  than  doubled  duriugthe  ])criod 
named;  that  with  Australia,  is,  ])erhaps,  one  third  greater. 

!).  The  i)resent  selling  ])riees  on  ])ractieally  every  line  of  American 
goods  are  decidedly  lower  than  they  were  six  years  ago.  There  pro- 
bably is  only  one  or  two  <;ases  where  the  average  is  not  from  10  to  2") 
per  cent,  in  some  cases  as  high  as  50  ])er  cent  less, 

10.  This  (pu'stion  on  your  part  <ti»ens  a  wide  liehl.  ami  American 
goods  in  the  directions  mimed  suffer  very  largely  by  reason  of  the 
unfortunate  ])osition  we  are  in,  having  uo  return  business  to  speak  of 
from  countiies  named,  which  requires  us  to  i)ay  a  very  much  higher 
freight  rate  than  is  enjoyed  by  others,  <\specially  Krigland,  (iermany, 
and  France,  with  their  subsidized  transportation  lines.  ]Most  of  our 
goods  are  carried  in  rjnglish.  (iernmu,  and  Norwegian  vessels.  There 
is,  further,  tlie  disadvantage  of  no  proper  ])ainking  arrangenu'ut,  so  that 
American  goods  suffer  b>-  having  to  pay  heavy  exchange  rates  to  for- 
eign baidvcrs.  Tho,  export  banking  system  of  this  <'ountry  is  moat 
deticient,  and  theie  appears  no  necessity  for  this  unfortunate  situation 
of  our  country.  The  (jrernian,  the  iOnglish,  and  the  Freiu'h,  through 
their  braiH'hes  here,  which  is  the  only  mode  of  selling  bills,  draw  tiibuto 
on  our  conuiu'rce.  The  transjtortation  question  is  an  (dd  one,  therefore 
we  shall  not  go  into  it  largely  excei)t  to  say  that  the  rTuite<l  States 
GovernnuMit  has  shown  ami  is  showing  a  lanuMitable  want  of  ability 
and  knowledge  of  trade  relations  by  not  doing  something  to  ibsterand 
encourage  Americran  shi])ping.  Once  ])ut  on  its  feet  it  would  take  care 
of  itself,  ^laiiy  i)lans  have  been  suggested,  an«l  we  understand  as  well 
the  question  of  subsidy  is  not  always  favorably  looked  upon,  butumler 
one  ])lea  or  another  l'ln,,lish,  (rerm.m,  and  French  shi])])ing  receive 
great  (an'ouiagenuMit. 

The  old  tlicory  of  having  a  ])aynuMit  made  in  the  way  «»f  a  rebate  on 
duty  tor  goods  condng  in  this  country  in  Anu'riean  shi|)s  or  steamers  is 
a  good  one,  but  at  the  same  time  it  opens  up  always  th.^  (pu'stion  that 
others  can  retaliate  by  similar  line  of  action  which  is  not desirahle,  and 
we  incline  to  the  theory  that  it  is  not  the  ]»roper  method.  ICither 
advertise  tor  contracts  to  run  regular  lines  and  caiiy  nniils  and  ])ay  an 
actual  yearly  subsidy,  or  adopt  a  system  which  we  advocate,  which  is, 
instead  of  paying  a  subsidy,  when  goods  have  been  brougiit  here  in 
Ajiu'rican  bottoms,  ])ay  a  bonns  to  ships  carrying  goods  from  here  in 
American  bottoms.  What  wenu'an  is,  thataccoi'ding  tot  he  class  of  goods 
on  all  articles  which  leave  here  foi' foreign  lands  in  .\meri<'an  ships  there 
will  be  paid  a  rebate  which  will  go  to  the  ex])orter,  or  vessel,  of  anywhere 


111.  Uut 
luc  duty 
)t  wlicie 
up:  up  of 

,vl>at  the 

we  (leal 
lion,  aud 
markets; 
our  own, 
(•ial  saiii 

ised  very 
total  luis 
ca,  to  be 
lio])('ri()d 

.Vuiericau 

here  i»ro- 

10  to  !>.") 

Anu'ricaii 
on   of  till' 
speiilc  of 
I'll   hiii'luT 
(lenuauy, 
[)st  of  our 
Is.     There 
lit,  so  that 
t(>s  to  for- 
is   most 
situation 
thioii.iiii 
\v  tribute 
therefore 
te<l  States 
of  ability 
foster  and 
taluM-are 
lid  as  well 
but  under 
!<.>;  reeeive 

rebate  on 
i»>aniers  Is 
stion  that 
irable,  and 
d.     Kitlier 
vntl  pay  an 
>,  whith  is. 
ht  here  in 
oiu  here  in 
ssof  .ii'oods 
•ihips  there 
I'  iinywhere 


HKCIPROCITY    STATEMENTS. 


543 


from  o  to  10  ])er  cent  or  less,  aeeordin^-  as  may  l>e  deemed  ueeessary. 
This  will  a(!('(»ini)lish  tlic  work  of  the  other  system,  aiui  will  be  a  direct 
benetit  to  the  shipand  the  maniifactuj'er — to  the  ship  in  the  way  of  sub- 
sidy, as  American  vessels  will  coniniand  a  hifjlier  charter  \alue.  aud  to 
the  luauufacturer,  as  it  enables  Ameri(!aii  j^oods  to  b(>  lauded  cheaper  in 
the  foi-eij^n  nnuket.  It  can  hurt  no  forei^^n  country,  luu'  is  there  any 
■way  in  which  a  foreiuii  country  can  offset  the  airaii<4emeiit  ext cpt  by 
doing' thc!  same  thiiiy.  which  is  not  likely  uiid(;r  their  present  system, 
and  even  if  tliey  di<l.  it  would  siiiii)ly  mean  that  com])ctiti()n  was 
])laced  on  old  levels;  but  wo.  believe  it  would  be  iiistrumeiital  in 
biiildiuji'  up  our  sliippiiig'  industries  very  rapidly 

11.  We  can  compete  with  foreiiiu  inerchants  on  a  vei'y  large  and  diver- 
sified (dass  of  Ameri(;an  mamifa(;ture<l  lioods  in  juices,  and  so  far  as 
quality  is  in  (pieslioii,  we  usually  consider  the  American-made  goods 
superior  to  both  <Jerman  and  i'higlish.  and  if  it  were  not  for  tlu^  traiis- 
l)ortation  difliculty  and  the  excliaiige  difliculties  (and  again  we  might 
mention  the  inability  of  the  ordinary  American  iiiannfacturer  to  give 
any  considerable  credit  to  the  exporter),  we  think  we  ciuild  <^oiui)ete 
fairly  well  on  most  general  lines.  We  refer  to  the  manufacturer  under 
this  heading  as  indermany.  England,  and  h' ranee.  The  ex])ort  merchant 
of  standing  has  a  credit  given  to  him  by  the  manufacturer  on  his  ])ur- 
chases  of  anywhere  from  three  to  six  months,  or  there  is  a  very  small 
discount  ibr  cash,  money  not  being  worth  as  much  in  those  centers  as 
here.  This  enables  the  exjiorter  to  send  his  goods  out  free,  and  make 
collections,  and  still  be  in  time  to  repay  the  manufacturer.  Weex])ort- 
ers  in  this  country  labor  under  a  very  serious  <litricult.\-  in  Inning  to 
jiay  i»ractically  cash  for  all  exjiort  goods,  througii  the  necessity  of  the 
manufacturer  who  runs  his  business  on  too  close  a  <'a]iital,  or  througii 
his  disinclination  to  give  those  who  are  trying  to  buihl  u]»  a  trade  tor 
him  the  same  fa<'ilities  which  his  fellow-inanufacturer  would  abroad. 

12.  You  ask  as  to  the  opinion  of  reciprocity  treaties  and  those  pre- 
viously made.  We  would  state  that  the  bSOO  treaties  dealt  with  coun- 
tries near  by,  and  appeared  to  work  fairly  well;  but  there  is  ai\>ays 
the  question  in  <*oniiection  with  recii)rocity  betvveen  two  countries  that 
they  must  avoid  in  their  mutual  arrang(Miients — the  takingof  any  stej) 
which  is  detrimental  to  the  interests  of  other  nations,  as  that  would 
mean  reprisal,  and  so,  in  (mr  opinion,  while  the  theory  of  leciproeity  is 
a  perfectly  i)roper  and  natural  one,  yet  it  must  be  carefully  worked  and 
carried  out  so  as  to  avoid  aii\'  possible  friction  or  iiifiingements  of  the 
rights  of  others.  We  mean  by  this  that  it  is  not  right  that  a  colony  in, 
say,  Africa,  or  Australia,  allows  the  goods  of  one  nation  to  go  in  at  less 
duty  than  the  goods  of  another  nation,  unless  tor  a  belter  reason  than 
the  general  recii)roeity  idea.  There  are,  however,  with  all  nations,  cer- 
tain classes  of  g"oo<ls  which  are,  you  might  say,  almost  c(Uifined  to  the 
nation  itself,  as,  Ibr  instance,  turpentine  in  this  country,  r(»sin,  etc.  N\'e 
could  fake  up  such  classes  of  goods,  and  with  peifect  accord  have  them 
admitte<l  free,  so  as  to  be  used  as  largely  as  possible,  and  giv(^  nations 
wliow(Uild  admit  them  free  certain  ad  vantages  (Ui  siniilardasses  of  goods 
if  they  had  them  within  their  bordeis  to  bring  into  our  country :  but 
unless  the  theory  ami  system  is  extendeil  on  tlu'se  lines,  it  becomes 
a])i)arent  to  anyoin'  win*  gives  the  matter  a  thought  that  it  would  sim- 
]>ly  mean  a  gradual  bri^akingupiof  the  world's  ])resent  trades  relations, 
each  one  making  treaties  here  and  there  tothe  detrimentof  others, and 
the  matter  would  soon  reach  such  ai)ointthat  beyond  question  it  w(»uld 
lead  to  a  reverting  to  the  older  theory  of  fair  and  free  competition 
betweeu  all. 


544 


KECIPUOCITY    STATEMENTS. 


i'^ ! 

'V' 


13.  Probably  in  our  answer  to  qucstiou  iL'  \ve  have  practically  replied 
to  your  (juestiou  in  No.  13  as  to  our  views  on  tiio  pusliin<j^  of  the  reci- 
procity idea,  and  we  therefore  can  only  say  that  on  proper  and  prudent 
lines  the  idea  is  a  brilliant  one,  but  wonhl  have  to  be  caielnlly  curbed 
so  us  not  to  lead  to  (biuyerous  coinplications  temporarily  unforeseeu  iu 
tlie  anxietA  for  increase  <.f  business. 

We  would  conehule  by  statinji^  that  we  have  not  ^'one  into  the  <iues- 
tion  of  values  in  any  of  our  remarks,  which  we  think  in  a  general  letter 
of  this  kind  is  hardly  necessary,  but  we  are  certainly  very  strong  advo- 
cates of  sonietldng  being  done  by  the  (iovernnuMit  particularly  on  the 
question  of  transportation  and  a  most  liberal  charter  for  a.  foreign  bank 
if  capital  cnn  be  found.  (Juick  and  direct  communication  witliall  lands 
is  necessary  to  enable  this  country  to  build  up  a  large  foreign  com- 
merce, aiul  under  the  ])resent  existing  relations  and  tlie  maritime  lawa 
Avhich  liamper  ns  so  greatly,  without  (lovernment  aid  it  secMns  almost 
impossible  for  headway  to  be  made.  As  all  in  the  export  business  well 
know  in  this(;ountry,they  are,  through  d(^ticieul:  means  of  transportation, 
losers  of  business  to  the  extent  of  many  millions  of  dollars  i)er  annum. 
We  will  simply  give  one  illustiation,  A  lumse  iu  Australia  or  JS'ew 
Zealand  desires  to  buy,  say,  a  thousan<l  tons  of  goods.  They  have  Ameri- 
can ])ricesand  they  ha\e  I'^nglish  i)rices.  They  are  juactically  uiiifoim. 
The  (|nality  of  tlu^  American  line,  Ikjv,  ever,  may  l)e  sui)erior,  and  ordi- 
luirily  the  order  would  come  here.  They  then,  however,  look  at  the 
(piestion  of  delivery  ;,n(l  transportation.  They  liiul  that  from  iMigland 
orCJermany  they  will  be  able  to  bring  the  goods  (uit,  by  cabling  for  them, 
in  probably  forty  days  by  steamer  and  as  low  as  by  sailers  from  here. 
From  this  country  there  is  no  steamer  eommuiucation.  They  there- 
fore discover  that  the  goods  must  come  by  saihu",  taking  from  three  to 
four  months  in  transit.  They  wish  the  goods  (puckly,  and  thisiioint  at 
on<'e  turns  them  to  the  home  nuirkets,  with  the  extra  benelit  of  saving 
in  exchange  ami  likely  huiger  credit.  We  onut,  when  we  state  there  is 
no  steamer  communication,  the  San  Francisco  and  Vancouver  route  to 
Australia,  but  while  this  is  well  enough  so  farasnnii!  communication  is 
in  ([Uestion,  and  w(i  strongly  favor  a  subsidy  to  keep  the  American  steam 
line  running  from  San  Francisco  as  againstthe  Vancouver  route,  yet  to 
get  goods  tVom  the  lOast  to  San  fiancisco  by  rail  adds  so  largely  to  the 
cost  that  exce])t  for  California  i)roducts  the  line  as  a  freight  line  is  of 
practically  little  value. 

We  (rust  the  various  matters  we  ha^e  outlined  uniy  be  of  sonu'  use 
to  your  valued  conunittee,  and  you  can  be  assured  that  any  information 
iu  our  power  we  can  put  before  you  we  shall  be  ghul  cheerfully  to  give. 


Everett,  Hmnvii  &  Co.,  A'e/r  Yorl;  Cit}/. 

3.  Dry-goods  ex])orters. 

3.  South  and  Central  America,  West  Indies,  China,  Africa,  and  Sand- 
wich Islamls. 

4.  By  travelers  to  South  and  Central  America  and  mail  offers  to 
other  countries  with  good  success,  because  oiu-  representatives  are 
competent  diy-goods  men. 

5.  Jt  has  i)robably  ciune  under  your  observation  that  in  sj)ite  of  exist- 
ing treaties  between  the  Queen  of  Madagascar  and  Great  IJritain,  the 
United  States,  Germany,  ami  Italy,  the  French  (ioverument  intends 
placing  Madagascar  on  the  same  footing  as  regards  custom  duties  as 


ly  replied 
the  rcci- 
l  pnuUiut 
ly  embed 
iieseeu  iu 

the  (lues- 
3iiil  letter 
Diig  iulvo- 
rly  on  the 
eigubanlv 
1  all  lands 
■ei^u  eoiu- 
itiiiie  laws 
ins  almost 
^incss  well 
^portatiou, 
)er  anniun. 
ia  or  New 
iiveAnieri- 
ly  mil  form. 
•,  and  ordi- 
ook  at  tlie 
111  iMi.iiland 
lo-  for  them, 
from  here. 
Chey  there- 
om  three  to 
his  point  at 
of  saving 
ite  there  is 
/er  route  to 
nicatiou  is 
H  aiisteaui 
lire,  yet  to 
i-ely  to  the 
line  is  of 

(f  some  use 
iiformatioii 
lly  to  give. 


RECIPROCITY    STATEMENTS. 


545 


the  Freiieh  <;oloiiies  iu  general.  Sucli  action  will  be  most  injurious  to 
all  l)ut  French  citizens  who  have  commerciiil  relations  with  Madagascar, 
and  we  especially  urge  that  our  uiiuister  be  instructed  to  itdervcne  on 
behalf  of  Ainericau  interests.  The  decision  of  the  Fr<'nch  (joverninent 
in  this  niattei'  may  be  announced  at  any  moment,  so  it  i^'  advisable  that 
if  any  action  is  taken  on  the  part  of  oui'  lepresentative  it  slioiihl  bi' 
done  without  delay,  TIk;  business  done  Ijctween  the  I'nited  Stales  and 
^Madagascar  in  American  cottons,  etc..  amounts  to  several  millions  pci 
annum. 

0.  None,  exce])t  the  abrogation  of  tlie  reciprocity  treaties  whicii  were 
very  detrimental  to  our  business,  and  the  increased  duties  in  Brazil. 

7.  It  would  increase  our  sales  onoi-inously;  A\e  do  not  do  10  ])er  cent 
of  tln^  volume  of  business  now  that  we  did  under  the  reciprocity  treaty 
with  Brazil. 

8.  We  have  not  been  established  six  years. 
0.  From  10  to  15  per  cent  less. 

U).  It  is  a.  welbknoAvn  fact  that  transjiortation  from  JCuropean  cen- 
ters is  nuich  less  than  from  the  States,  and  communication  mmdi  more 
fre(juent  for  Avest  coast  of  South  America.  The  grt-ater  i»ai't  of  Ameri- 
can dry  goods  are  shipped  via  Panama,  and  tln'ielbre  are  subject  to 
the  exorbitant  charges  of  the  Panama  Jvailroad  ('om])any,  whereas, 
I'rom  England,  Germany,  and  France,  they  ai-e  shipjied  via  the  Straits 
of  ^lagellau,  and  we  very  often  find  that  we  can  shi]*  via  Kuroi»e  and 
save  3.'{.^  ])er  cent  against  direct  shipment  via  Panama,  aUowing  for 
freight  Irom  here  to  l'>uroi)e. 

11.  On  all  classes  of  coarse  yarn  goods,  and  on  certain  claSvSes  of  dy<'d 
and  i)rinled  heavy  fabrics,  we  can  more  than  compete  with  the  I\lan 
Chester  markets;  but  on  line  yarn  goods  of  high  count  and  lille<l  classes 
we  can  not  com])ete,  btit  tliere  is  one  simple  way  of  throwing  thi^ 
greater  ])art  of  the  foreign  cotton-goods  trade  into  this  market,  namely, 
the  ])lacing  of  an  exi)ort  duty  on  vnw  cotton  to  all  Euroi)ean  maikets. 
^Vhiie  this  would  curtail  to  some  extent  the  shii)ment  of  raw  cotton  to 
European  nuirkets,  it  would  be  more  than  counterbalanced  by  the 
increased  demand  of  our  mills,  and  tlie  Southern  ])lanters  woidd  leaj)  a 
higher  price  for  their  cotton  than  they  do  undei- existing  circumstances. 

12.  Favorable  in  the  highest  degrei';  tiieir  repeal  reduced  our  busi- 
ness to  those  countries  to  the  extent  nuiutioned  in  No.  7. 

13.  Yes;  but  with  Ameiican  nations  only,  as  we  fail  to  see  what 
advantage  we  derive  from  European  reciprocity. 

11.  Pep.  22(;3 3.") 


ill 
if 


•>  t 


and  Saud- 

lil  oilers  to 
Itatives  are 

[te  of  exist- 
llritain,  the 
]nt  intends 
li  duties  as 


il: 

•ii 


API^KJVJ  )IX    K. 


.STATiNTlCAL  'mm  !;KLVrf.XG  T(.  TI.K  Ko|i,„,v  omm^, 

(»F  THK  rxiTi:/)  STATUS. 


II 


547 


548 


RECIPUOC .ITY    STAri:Mi:NTS. 


m 

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"*'  '^'"  ='"  x'  O  CO 

— <  ■-f  «o  o  rt  cj 

ci  cj  ■*  1.1  tn  irr 

?o  w'^'^'co'co' 


M  O  -^  f—  00  OC 

O  I-  I~  fl  t-  o 

52  m  W  ?5  CO  rf 


COMC  O  OtO 

«  M  C2  »  r-  in 

Ol  rl  M  O  O  lO 

»C"C>J  ■^'  00  r-i  I-*" 

rj  -^tO  00  O  iC 


caw  wc^<c?D 

**  00  O  t^  I-  ^ 

rf  i-'cc'cT  o'tri 
^roao?5(M  w 


c:  -i*  ■^  ^  m  ^ 

1^  CS  t-'l-'  --f  of 

»5  -h  oi  ro  ?  1  lo 

'■'5  t--  Oi  O  00  QO 

C^C0"ci5^'^lOI>r 

^;  o  CO  o  o  w 
c;  -T  o  o  r-t  (o 
:"J  oc  -J  CO  t-  ^ 

■a 
o 

be 
g 


o;  3  —  ff.1  M  "* 

ccaa  a  o>  oj 

CC  OC  X  OC  CO  00 


03 
W 
H 
■< 
H 
t» 

u 

hi 

H 

o 
o 

H 

< 

M 
W 

o 
o 

Q 
W 
H 

O 
CM 
t-( 


3 


r:  o  T I  in  <o  ro 

I"*  ^  3s  CO  -r  »n 


—    4, 


i>-  CR  I  ^  -^  C)  CO 

§2??^' Si  2 

^  I-  I  -  i-  in  n 


§1 


3  Z 

?-2 


—  3-.  *  ■*  «  l~ 

<c  o  r;  -f  •It  •t 


CJ  TO  O  CO  Q  CO 

Oi  uj  ro  ro  in  d 

QOirt  rt  cj  OS  ■* 

rf  CO  Qo'irj  io<d" 
CO  ro 


i.  oj  X  ff-  ■^  c5 

^^  ■^  l^  C^  rH  00 

•t*  X  o  oj  — .  t* 

rj  r-*  C^  r-i 


1-!      ■" 


S  iS  r*  52  "n  — 

O  QC  I*  -t  OOCS 

CO  o  oTs  to  o 

4»  iH  ri  ~<  r-l 


go 

as 

C;2 


1  to  00 


cc  3:  Ci  r^  ^ 

OS  CO  1-H  f-t  L 

CI  -^f  CO  W  fi 


?t  00  o  o  coo 

CO   -H   i-l  M   ■^  ,-, 

(■-  CO  Ol  CO  o  CI 

o  lO  -1*  »-*  re  o 

CC  C5  MCMCifO 


p 


CI  o  .-« iM  re  -♦' 

'T  OS  OS  o:  oi  OS 

X  X  00  00  X'  CO 


If* 


I'tff  'pi 


f  6 


I 


f 


APPENDIX  L. 


RATES  OF  DUTY  [MPl)SI-I)  RY  FORERAN  COFNTRIES  UPON 
ARTICLES  EXPOKTED  FROM  THE  UNFTED  STATES. 


604 


RECIPROCITY   STATEMENTS. 


rh: 


a 

P 
o 

M      E 

S    S 
2   ^ 

P     a 

C 

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<1 
H 


TS 
fl 


W 

.    H 
CO    >, 

S    to 


o 

Q 


52i    5 

3S 


'3 

o 
♦J  "^ 

<£  e 

il 


«    m5 


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fa 

fa 
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a 

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t= 
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ca 

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n 

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a 

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e 


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i 


.*  "  ,-^  (-•        a    O 


c , 


J5S 


fc.;:^  fr*  :^  ..      {rr-^ 

0)   ,     «    rt      •         X  CO 
t^  CC  OO  CO   ^       CI  -r?  r" 


6  0  o  c  c 


^/j^  CO 


ti  ^  '■''. 
i~ci  o-\ 


^£    S 


g^ 


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o 
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p.  o 


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t,  2  g       a  O 


•— .  '  QO 


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i.Ai- 


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=  51 
—  it. 


P.* 


§3°^ 


£5 


P,- 

2i 


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P>    IB 

2k£ 


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«h    let- 


up's 
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gtc 


p. 


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h  m  M        «-( 


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CO 


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5  » 

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fc£2 

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5j= 


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'  1  2 

o  e  c  e  5  P-  = 


i3 

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s 


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•  =  rt  '      ^'■~  " 


5 
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2  -t  ^ 

■  •'  *  *  *-"'*-^     ^® 
to 


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«'p, 
£  P 


?25  ail 

—     C  5*-! 

I'll 

It.:* 
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to 

ez  Ti 

■"  fc-     ^     go 

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Ji  "  «  * 

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w  '■  J  P  '5  2 
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CC '/  T. 


-'"""•'•'*•-"•    2Sa    asaSU2SSc5    Rgi3    SS    EiS«5§SH    SJ« 


c 

o 

t-l 

Do. 

per  100  lb. 

Uptir  100  1b. 
c.  per  100  lb. 

o 
o 

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CO 

e-i 

f»m 

•  A  ■ 

>  ^-1  • 

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■  £  J 

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i-i  r-r 

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1 

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^ 

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06    'in    •««■«■ 

c 


T.  5  "  a; 

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—   Cm 

5 

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2 

ti—  ■s; 

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=  Hf 

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t> 

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« 

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2:5  § 

■a 

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?,  pfsass?^  s;? 


w 

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fm 

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II.. 


606 


RECIPROCITY    STATEMENTS. 


Oi 

00 

p 

n 

a 

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a 

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Ul 


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5  5  5  e.5  '^S  «  M  i  s 

•  d  ^  ^    &^       .  *^    £)  .»-    P-     .       . 
J^"^""    _.«   U^   5    1,   _.   u    3 


,00     ,     ,     ,  fr.  ;-  u  b 

e=coc$ri$ 


o  o 


©dodos      66 


9  6  6 


n 


c-J  I-  I';  ra 


fc,2S 


c»i/:*( 


—  ^    Ij     ij     wm 

e  533  o  p,c.E.? 


t.  l-  00 

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■  3 


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<1 


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-■  5  ^3  t;  t:  /  •  «^  -*  3 


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f1  —  rt    l-c 

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"—  I- 

h  b  £ 


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c4 


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(,  "C  a  -C  rt  t-       CO  "3 


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ci   '  «!<=■.  $  »  o 

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COO  "--fift  *  ^  ct  n 


El 


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II 


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e.5: 


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=  3 


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00 

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a 


3 
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trj 


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ci  a, 


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2^' 


5?: 


rS«  ;  :-s 

:  <=•(:;  ^  » 

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5  t£>  -  «  5  ti_ 
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^(NC3-.»«U:tOl-00ffi        O^IN 


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g  « »•  i  «  =  !r, 
w  —  .-  -  4-1  d  " 

It  s  3       s'S 


KECl"KOCITY    STATKM ENT8. 


607 


2^ 

2t3 


i      o  o  o  o  o 

-r.-qaoao 


5    5    £5-^-^-^  -'' 

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ioiScj»«>;i.oooot  ^cs.03. 

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t^t* 


608 


EKCIPliOCITY    STATEMENTS. 


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M^      _<      n  nnM -«  r- —  IN:' 


ujtp      t~aco»Ot-ie 
M  ffi      M  M  M  ^^  rt  : 


mmmmmm 


RECIPROCITY   STATEMENTS. 


609 


o  o  S 


Li 

aJ     G    .  ■ 


0<S. 


to  00 
1-'  lo 


O         CO 


;2    -o 


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0>        "O   4)  U         d 

2       ir,*"  M         - 


tkEh 


91 


t^  «  41  tH     .  aj  t. 


IS  II    .    . 

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hi 

9 

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;2"   ; 


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CON 


t^  a;  Li 


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ftftft 


—  -  5i 


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a 


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>nr3 


000 


'  a  0  OJio 

•CO  -"Ji  CO  CO 


Li 
111 


^  :  S 

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do 

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6c.  per  1 
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fto  ©oft; 

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LNDEX  TO  THE   All'KMJlXES. 


Page. 

Acmo  Milling  Cotupny,  In(Uaiia])oliH,  In<l 'A'J'J 

Atliiiiis  »&,  JiineuiH 518 

Ad«lieH8t!H  liy  ro))reHentative.s  oC — 

liive-stock  industries 193 

I-'lonr  industry 203 

Admission  of  hog  products  into  (ier'-iany 140 

Atlnlterated  foods 127 

Aj;ricultural  iniplcmcnts 97 

Agricultural  ini]»lonient8,  circular  of  in(|uiry 427 

l{ci)lieH  from — 

Jiuclicr  it  (jiibbs  IMow  Ccuupany,  Canton,  f)liio 436 

Far(|uahar,  A.  15.,  Couipany,  York,  I'a 428 

John  Mooro's  Sons  Conijiany,  Karitan,  N.  .1 434 

Johnston  Harvester  Company,  Batavia,  N.  Y 431 

Keystone  Mannfacturiuf;  (,;oni])any,  Stcrlinj^,  111 43ti 

Marion  Manufacturing  Couijiauy,  Marion,  <  >hio 432 

Moline  I'low  Conii)any,  Moliuo,  111 430 

Kohiuson  Chilled  I'low  Company,  Canau<laigua,  N.  V 131 

Stoddard  Manufacturing  Company,  iJaytou,  dhio 432 

AKion.  Ohio,  rejjly  of  the  (iovcrnor  Works 310 

A I  lord  &  Berkcle  Company,  Now  York lillO 

Allen's,  J.  J.,  Sons,  Philail(li>hia,  I'u 413 

Allcrton,  W.  S.,  Chicago,  111 1!I3 

American  Cranberry  Trade  Company,  reply,  New  York 3IU) 

American  Multiple  Fabric  Company,  Ohieyville,  U.  1 372 

American  Paper  Makers'  Association,  New  York 180,  313 

American  products,  restriction  by  foreign  countries 137 

Anchor  Mill  Company,  Superior,  \\  is 333 

Auinnils: 

Exported  from  Argentina 587 

Exported  from  the  L'l.ited  States 576 

Anson ia  Clock  (Company,  New  \ork 459 

Appendix  A.  Keciprocity  with  Canada 63 

B.  Trade  with  Argentine  Ke]>ublic  and  Uruguay 77 

C.  Trade  with  China  and  Japan 105 

D.  Adulterated  food  exported  to  the  United  States 125 

E.  Restriction  on  American  products  by  foreign  countries 135 

F.  Keplies  of  commercial  and  industrial  organi/.atious 145 

G.  Addresses  before  committee  by  representatives  of  the  live-stock 

industry 191 

H.  Addresses  before  committee  by  representatives  of  the  Hour   in- 
dustry    201 

I.  Various  industries,  statements  of  representatives  of 263 

J.  Manufacturers  and  merchants'  rej)lios 293 

K.  Statistical  tables  relating  to  the  forcigu  connnerce  of  the  United 

States 547 

L.  Taritfs  of  foreign  countries 603 

Argentine  legation,  statement  of 91 

Argentine  Kcpublic: 

Animals  exported 587 

Breadstuft's  exported 587 

Meat  exported 588 

Tariff 82 

Trade  with 79 

Trade  with  Europe 84 

Trade  with  the  United  States 85 

Value  of  the  market 84 

Arkell  &  Douglasu 541 

627 


628 


INDEX. 


P»ge 

Arinrmr  A-  Co 356 

AHHoiiiitctl  iiiatMiCacliirciH,  New  York 157 

Atlas  l^uniiio  \\  oi  Km,  IiuliaiiiipoliH,  Iiul 420 

Atlas  TiUik  ('orpoiatiim,  lioHlon,  MawH 395 

AtlitU(h)  of  NewlbiiiKllaiitl 70 

AuHtrahiHia: 

lixjiortB  and  iinportM 589 

Taillls 622 

TracUf  with  principal  (•(luntricH 590 

AuMtiia-lliiiigaiy : 

KxjiortH  aiul  imports 548 

Taritr , 604 

AviHton  Ml  Mill  jj  Company,  Avistoii,  111 332 

Ayres,  li.,  J'liilatleliiliia,  Pa ..    309 

Ayer,  J.  C,  Company 441 

Haldwin  Locomotive  Works,  PliiladHphia,  I'ii 382 

I  tail  &  Wood  Company,  New  York 408 

IJailard  &  Ballard  Com]»any,  Louisville,  Ky 335 

Baltimore,  Md.,  Board  of  Trade 2()8 

Barnes  Manufactnring  Coniitany,  Mansllold,  Ohio 311 

Barher,  1».  !\*.,  &  Son,  Minneapolis,  Minn 337 

Becker,  William,  iicatlier  Comjiany,  Milwankee,  Wis 487 

Beef  and  cattlt*  prohibited  in  Germany 137 

Beef  exi>orted  from  Urnguay 102 

Beef  pnulncts,  total  exi)ort8 576 

Beeman  iV  Casliin  Merchandise  Company,  lOvanslon,  Wyo 317 

Bel.uinm,  i)r()hibiting  the  importation  of  cattle  I'rom  the  United  States Ill,  188 

Belgium,  tariff 604 

Bender  &  Aldred,  Pittsburg,  Pa 445 

Bennett,  A.,  &.  Co 528 

Bernhard,  Stern  &  Co.,  Milwankee,  Wis 340 

Black  &  ClawHon  Com])any,  Hamilton,  ( ihio 4t)9 

Bli8§  Milling  (Company,  Seymour,  Ind 327 

Bloom,  Samuel,  iV  Sons,  San  Francisco 499 

Board  of  Trade — 

Baltimore,  Md 268 

Columbus,  Ohio 181 

Clarksville,  Tonn 175 

Gainesville.  Pla 159 

Glencoe,  Minn 172 

Minuciipolis,  Minn 184 

National 147 

North  Adams,  Mass 181 

Northampton,  Mass 154 

Paterson,  N .  .1 159 

Philadelphia,  Pa 183 

Scrantou.Pa 174 

Tiii)elo,  Miss 177 

Board  of  Trade  and  Transportation,  New  York 176 

Boston  Chamber  of  Commerce 183 

Boulton,  Bliss  &  Dallett,  New  Y'ork 490 

lirass  and  Iron  Works  Company,  Fostoria,  Ohio 421 

Brazil: 

Exports  and  imports — 

France .'}95, 596 

Germany 598 

United  Kingdom 591,  592 

United  States 548 

Flour  trade  with 206,216 

Hog  products 580 

Principal  articles  exported  and  imported ^ 549 

Tarilf 616 

Value  of  total  exports , 548 

Breadstuifs 319 

Total  exported  from  Argentina 588 

Total  exported  from  United  States 560 

Brigham-Hopkius  &  Co.,  Baltimore,  Md 370 

British  Guiana: 

Exports  and  imports..... 548,550 


INDEX. 


629 


355 
157 
420 
395 
70 

589 
622 
590 

548 
604 
332 
309 
441 
382 
408 
335 
2(58 
311 
337 
487 
.   137 
.   102 
.   57G 
317 
111,  1S8 
ti()4 
.   445 
.   528 
.   340 
400 
.   327 
.   499 

.   268 

.   181 

.   175 

.   159 

.   172 

184 

.   147 

181 

.   154 

-   159 

183 

..   174 

177 

. .   176 

..   183 

..   490 

. .   421 

r,95, 596 
. .   598 

591. 592 
..   518 

206,  216 
580 
. .  549 
. .  616 
..  548 
..  319 
..  588 
...  560 
...   370 

548,650 


HritiHli  Oniiiiia— Coiitiimod.  Pago. 

Kxport  of  otluM'  itrovisioiis 58r» 

Turiir 618 

Valiin  of  liriiicifnil  articlofl SfiO 

\  aliio  of  total  exj)ort8  niul  iinporls 548 

I'lritiwli  West  Indies: 

Exports  aiul  iiiii)ort8 548 

Mieadstiills 570 

fIo<^  products 580 

Other  proviHions 584 

Principal  articles  exi>ori(\(l  ami  imported 5r'>l 

Tar i If 010-61 2 

Val  110  of  total  exports 648 

ISrowiii  11  Car  Coinpaiiy,  St.  Lo      ,  Mo 473 

linisli  lOlectric  Conijtaiiy,  Cleveland,  <  iliio  388 

Mueller  iSi,  Oihbs  I'low  c'ompnny.  Can  tun,  Ohio 436 

iiiHl'alo  Merchants'  Kxchanf^e,  Batl'alo,  N.  V 170 

niirniiaiii  &  Co.,  Hoston,  Mass 314 

DusincNs  Men's  Association,  Crystal  Falls,  Mieli 153 

MusincNs  Men's  Association,  Martinsliuijf,  W.  \  a 161 

Calef.  Horace  W 525 

Cambria  Iron  Company,  Philadelphia,  I'a 385 

Canada: 

Keeiprocity  in  1H.')1 65 

Other  provisions 586 

TanlV 608 

Canadian  trade  with  the  United  States 73 

Carleton&  Molfat 533 

Cart,  Walter 534 

Cars,  vehicles,  etc.,  circular  of  inquiry 470 

Replies  from — 

lirowuell  Car  Company,  St.  Louis,  Mo 173 

Chattanooga  Car  and  Foundry  (  ompany 474 

Columluis  Hufi^gy  Company.  Columbus,  (Jhio 474 

Dash  and  Carriage  Goodt  Company,  Ciucinnai  i.  oh  D   179 

Haydoek  Carriage  Company,  ('iucinnati,  Ohio 479 

Muncie  Wheel  Company,  Muncie,  111 473 

Norton  Door  Chock  and  Spring  Comjiany,  Bostou 473 

Shetlield  Car  Company,  Tluee  Rivers,  Mich 'ISO 

Tricycle  iManiifacturiug  Company,  S))ringlield,  Ohio 171 

Welis  <fe  French  Company,  Chicago,  111 471 

Catlin  &Vo 378 

Cattle : 

Exported  from — 

Argentine  Republic 99 

Uruguay 102 

Inii)orteti  from  United  States  prohibit!  <  in — 

Belgium 14 1 

Denmark 142 

France 141 

Germany 137 

Cehallos,  J.  M.  &  Co 525 

Central  and  South  American  Telegraph  Company,  New  Yori< 301 

Central  Iron  Works,  llarrisburg,  JPa >  383 

Chamber  of  Commerce — 

Boston,  Mass 223 

Cleveland,  Ohio 149 

Milwaukee,  Wis 149 

New  York 176 

Pensacola,  Fla 179 

Pittsburg,  Pa 178 

(JhattiinoogiiCar  and  l'''oundry  Com]iany 474 

Chester,  Pa.,  Merchants  and  Business  Men's  Associjit ion 179 

Chicago,  111.,  The  National  Live  Stock  Exchange 162,  185 

China: 

Breadstuffs 571 

Tariff 620 

China  and  Japan,  trade  with 107 

Cincinnati  Chamber  of  Commerce  and  Merchants'  Exchange 150 

Cincinnati  Corrugating  Company,  Piqua,  Ohio 400 


INDEX. 


Cincinnati  Tool  Conipnnv,  Oiiioitmati,  Oliio 425 

Cin'iilarsof  iiKniiiieH..   li7,2(tr>.  Sl!t,  :ir)l,  :;ii(i,  :;S(),  403.  127,  i:i8,  452,  4r)8,  4(53, 470.  483,  511 

Ciiiriiidii,  Iowa,  I'ariners'  IT  .i(l<|iiart< m 162 

Clarksvillo,  Teim.,  I'oanl  of  lYado. 175 

CU'veland  ('lianiber  of  Comiuerco 149 

('Icveland  Milliim  Company,  Cleveland,  Ohio 336 

Clocks,  watidies.  fancy  goods,  circular  of  inquiry 458 

Replies  from — 

AnHonia  ( 'loci    ( 'omjiany.  New  York 459 

Keystone  Wau  h  Case  Company,  riiiladelpliia    I'a 461 

Meriden  Hronze  Company,  New  York 400 


529 

574 
586 
616 

Colninl)nH  Biiii;<^y  Compiiny,  Colnnilins,  ( diio 474 

Colinnlms,  Oliio.  Hoard  of  'I'rade 181 


Con.tcs  Mros. 
Colonibia: 

nrcadstnflfs 

Otlier  provisions. 

Taritf 


Col  well,  A.  W  ..  enjiincer.  etc.,  New  York 423 

Clonunerce,  forciijn.  statistical  tables  relatiiij^  to 
Coniincicial  Association  of  .Sioux  City 


548 
151 


Comnuicial  Clnlt,  Newton,  Kans 182 


Coinnicri^ial  Club.  Vclasco,  Tex. 

Commercial  independence  of  ( 'anada 

Commercial  League,  Fort  Smitli,  Ark 

Conmiercial  Miliiiiy  Company,  Detroit.  Miili 

Commercial  union  ))etween  the  I'nited  States  and  ('anada  ]>roposed. 

Commercial  anil  industrial  or<;ani/ations,  r<!plies  (;f 

Commission  and  exi)ort  merchants,  cir( 
Keplies  from  — 

Adams  v'V:  .limcnsis.  New  York 


180 
69 

183 

337 
68 

147 
uliir  of  in(|iiiry 511 


538 

Arkell  iV  1  Ion j>  lass,  New  York 541 

iiennett.  A.,  iV  (Jo..  New  York 528 

lUiss.C.N..  New  York 528 

Ceballos.  .1.  M.,  &  Co..  New  Y.uk .525 

Calef,  Horace  W..  New  York 525 

Carleton  A:  MolVat,  New  York 533 

Carr,  Walter,  Nt^w  \<,rk 534 

Coates  ]5ros.,riiiladclpliia,ra 529 

Con(^  Kxport  and  Coiiiuiission  t'ompany,  New  ^Ork 512 

Dnmont  Coinpany,  Ntnv  ^drlc ,526 

East  India  Trading  Com]iany,  Portland,  Oreg 535 


I'.lbert  <Sc  (iardner,  New  York. 

lOverett,  lleaney  it  (!o.,New  York 

Glover  &  ( »dend,ahl.  New  Orleans,  La 


527 
.544 
540 


Grace,  W.  K.,  &  Co..  New  York 528 

Herrnumn.  Theo.,  New  York 

Kolin.  \\ Cil  iV  Co.,  New  Orleans,  La 

Knnhiirdt  vV  (.'o,,New  York 

Laurus  l.oomis,  ('utlin  iV-  Co..  New  Yoi'k 
Lawrenc(!  .lolinson  »^k:  Co..  I'liiladclpliia.  i*a 


521 
.531 
519 
.541 
,529 

Lannian  4.V  Kemp,  New  Y'ork !538 

Loaiza  iV  Co,,  New  York 

Oteri,  S.,  New  Orli^ans,  La 

ratterson,  Kamsav  it  Co.,  Haltimorc,  Md 

Peek,  \Vm.  E,,  iV  (-'o,.  New  York  

I'onmres  A  Cnsliimin.  New  York 

I'uig,  Luiilio.  New  Y'ork 

Hothschild.  Mros,  it  Co..  New  York 

Rcixas,  .\.  M..  New  'i'ork 

Smitii,  Hogg  iV  (iardner.  New  ^'ork 515 

SnssdorlV,  /a  Ido  A-  ( 'o..  New  York  5;!2,  533 

536 
156 
301 
307 
371 
608 
272 


536 
532 
530 
515 
51(1 
.532 
517 
518 


AN'ilJiams.  Kicliardson  iV  Co,,  New  Orleans. 
Committee  on  imlustrial  extension,  Orw  igslmrn,  I'a 
C(uie  l''.x|ioit  and  ('(unmission  Comi)any.  New  ^■ork.. 

Con  (cue  in  iV  Sou.  New  York 

Conlooeook  Mills  Com]>any,  jjiilsboro  Jlridg<sN.  If.. 

(!osta  Kii'a.  taritf 

Cotterill,  Charles  A.,  Detroit,  Mich 


.i  II 


PftfTfl. 

425 

175 

149 

336 

458 


459 
461 
460 
529 


574 
586 
616 
474 
181 
423 
548 
151 
182 
180 
69 
183 
337 
68 
147 
511 


538 

541 

528 

528 

525 

525 

533 

534 

529 

512 

526 

535 

527 

544 

540 

528 

521 

531 

519 

541 

529 

538 

53(5 

532 

530 


515 
516 
532 
517 
518 
515 
!2, 533 
536 
158 
301 
307 
371 
608 
■   272 


INDEX. 


631 


Pago. 

Cotton  industry  in  Japan  and  India 117 

Cowgill  &  Uili  Milling  Company,  Carthago,  Mo 349 

Crane  Company,  Chicago,  111 419 

(Jraiie,  .1. 1?..  «fc  Co.,  Wobiirn,  Mass 492 

Crockery,  glass,  etc 4.52 

Crosby,  John,  Minneajtolis 251 

("rown  Distilleries  Company,  8an  Francisco .501 

(h-ystal  Falls,  Mich.,  Miisiiiess  Men's  As.sociatiou 153 

Cnba  and  Puerto  Kico  llonr  traile 206 

Cndahy  Brothers  Co 365 

Cndahy  Packing  ComjKiny 357 

Cumberland  Mills,  Xaahville,  Tenn 334 

Cnba : 

lircadstii  ll's 568 

Hog  products 579 

Principal  articles  exjiortcd  and  imported 553 

Tariir 614 

Total  value  exports  and  impo' '     .     548 

Cnrtis,  William  E. : 

iStatcmcnt 79 

Trade  with  China  and  .(ni),'' 107 

Dabney.  lion.  Charles  W.,  staton'     ;     127 

Daisy  lioUer  Mill  Comi)any,  Sup_  or,  Mich 341 

Danish  West  Indies,  tarill. '. 612 

Dash  and  Carriage  ( Joods  Comi>any 479 

Danpliin  Roller  i'lonring  Mills,  Dauphin,  Pa 33.5 

Davis,  M.H.,  president  Winter  Wheat  League 209 

Dayton  Hedge  Company,  Dayton,  Ohio 329 

Dean  Hros.  Steam  Pump  Works,  Indianapolis,  liid 395 

De  IJutts  &  Daggett,  JJoston,  Mass 486 

Dederick,  P.  K 394 

1  )oniise,  1 ).  D.,  New  Jersey  State  board  of  agriculture 281 

Denmark : 

Prohibiting  the  importation  of  cattle  from  the  United  States 112, 189 

Otiier  provisions 582 

Taritf 604 

Dennis,  J.  A..  Trenton,  N.J 497 

Detroit,  Mich.,  Charles  A.  Cot torill 272 

Detroit  Steel  and  Sjtring  Company 404 

Diamond  Machine  (,'ompany,  Providence,  H.  I 410 

Diez,  W.  L.  Rodigiioz,  staten\ent,  Montevideo 101 

Disston,  Henry,  &  Sons,  Philadelphia 387 

Dock  charges,  etc.,  in  London 2.59 

Dole  Bros.  Company,  J?oston,  Mass 390 

Doniiugnez,  Hon.  Vincente  I.,  statement,  Argentine  legation 91 

Dori.'^tte,  J.,  &  Hro '. 4a5 

Draft  st?itement  on  London  clause 254 

Draper,  Ceo.,  &  Sons,  Hoped  ale.  Mass 405 

Drugs,  medicines,  chemicals,  circular  of  incpiiry 438 

Replies  from — 

Allen's,  J.  J.,  Sons,  Philadelphia,  £'a 443 

Andrew  Jergens  A-  Co.,  Cincinnati 444 

Ayer, .I.e.,  Comiiany,  Lowell,  Mass 441 

Bender  &  Aldre<l,  Pittsburg 445 

Oilman  Bros.,  Boston,  Mass 441 

Harrison  Bros.  &,  Co.,  Pliiladelphifi.  Pa 439 

Heath  &  Mulligan  Manufacturing  Comi)auy,  Chicago 446 

Jerouui,  Marble  A  Co.,  Host  en,  Mass 444 

Josephine  Moore  Com])any,  C'hicago 4.50 

Longman  iV  Martine/,,  New  York 415 

Mullord.H.K.,  A  Co.,  Philadelphia,  Pa 146 

Prouta  (.^ura  Company,  Moriden,  Conn 143 

Seabury  A  .Fohnson.  New  York 447 

Sharpless  Dye-Wood  Extract  C(mipany,  Pliiladelphia 4.50 

Dnluth  .lobbers' Union,  Dulutb,Minu 180 

Dumout  Company 526 

Dutch  West  Indies.  tarilV 612 

East  India  Trading  Company 635 

Edge  Moor  Bridge  Works,  Wilmington,  Del , 395 


6«2 


INDEX. 


Effect  of  tlie  Wilson  law  in  Canada, 72 

Elbert  &  Car.lnev 527 

EssenccH  cmiiloyed  in  Germany  for  the  niannractiire  of  aitilicial  lifinenrs,  etc..  129 

Etowali  Iron  Company,  Carters ville,  (ia 4K;S 

EvaiiH,  T.  15.,  statt  iiieut,  Geneva,  111 329 

I'iVerett,  Hcaiiey  »!t  Co 541 

Export  trade  in  flonr 239 

Exports  ofeattle  from  Ar";ontina 99 

ICxporta  fiom  the  United  Sta«  is  to — 

Australasia 690 

Austria- Hungary 548 

Belgium — 

Hreadstntrs 563 

Hog  products 577 

Other  provisions 582 

Brazil — 

Hog  products 580 

Principal  articles 549 

Value  of  total  exports 548 

Britisli  (jiuiana — 

Value  of  jirincipal  articles 550 

Value  of  total  exports 548 

Other  provisions 585 

British  West  Indies — 

Breadstnfls 570 

Hog  products 580 

Other  provisions 584 

Principal  articles 551 

Value  of  total  exports 548 

Canada — 

Other  provisions 58fi 

China — 

Preadstnfl's 571 

Colombia — 

Breadstnffs 574 

Other  provisions 586 

Cuba — 

Breadstnifs 568 

Hog  products 579 

Principal  articles  .   553 

Value  of  total  exjwrt.s  548 

Denmark — 

Other  provisions 582 

France — 

Breadstnft's 562 

Hog  ])roducts 577 

Other  provisions 583 

Germany — 

BroadstuMs 564 

Hog  i)ro(lucts 578 

Otlicr  provisions 583 

Value  of  total  exjxuts 548 

Guatemala — 

Princijial  artichss 556 

Value  of  total  exports 548 

Haiti — 

Other  provisions 585 

Honduras — 

Principal  articles 557 

Value  of  total  exprn  (s ^ 648 

Hongkong — 

Breadstnifs   572 

,lai)an — 

Breadstnffs 673 

Mexico — 

Breadstnffs 567 

Hog  products 680 

Netherlands — 

Breadstnffs 566 


INDEX. 


633 


72 
527 
12!) 
4K3 
329 
54i 
23i» 

99 

590 

548 

5fi3 
577 
582 

580 
549 
548 

550 
548 
585 

570 
580 
584 
551 
548 

586 

571 

574 
586 

568 
579 
553 
548 

582 

562 
577 
583 

564 

578 
583 

548 

556 
548 

585 

557 
548 

572 

573 

567 
580 

666 


Exportfl  from  the  United  States  to — CoiitiiiU(!(l.  Page. 
Netherlands — Continued. 

Hog  products 578 

Otlicr  provisions 583 

Nicaraijna — 

Principal  articles 558 

Value  of  total  exports 548 

Pnorto  Rico — 

Ureadatuffs 569 

Hog  ))rodiicts 579 

Principal  articlew .V)4 

Value  of  total  cx])orts 548 

Salvador- 
Principal  articles 559 

Value  of  total  exports 548 

Santo  Domingo- 
Other  provisions 486 

Principal  nrticli^H 555 

Value  of  total  exports 548 

Sweden  and  Norway — 

Breadnt  u  lis 566 

Hog  ]) rod  nets 579 

Otlua-  ])roviNioiis 584 

United  Kingdom — 

Ureadsl  uHa 561 

Hog  products 578 

Other  provisions 584 

Venezuela — 

Breadstuflfs 575 

Hog  products 581 

Other  iiruvisions 585 

KxjKtrts  from  tlie  United  States: 
Total  values  of — 

Animals,  188.5-1895 576 

Reef  products,  1885-1895 576 

Breadstuds,  1S85-18!'5 560 

H og  prod ucts,  1885-1895 577 

Other  ]>rovisions,  188.')-1895 582 

Fairmont  Worsted  Mills,  Philadelphia,  P.i 368 

Fancy  goods,  clocks,  and  watches,  circular  of  inipi iry . 458 

Replies  from — 

Anson  ill  Clock  Company 4.59 

Keystone  Watch  Case  (\)mp!iny 461 

Merid(sn  Hron/eCom|i;Miy 460 

Farley,  H II rvoy  &  Co.,  Boston,  Mass 303 

Farm,  Willard  Warner,  (  hattanooga,  Tenn 329 

Farmers'  Headquarters,  Clarinda,  Iowa 162 

Farriir,  Hon.  lOdward,  statenu-nt 63 

Faniuiihar,  A.  U.,  Coni])anv,  York,  Pa 428 

Fi(rw<dl  iV  Rhines.  Watcrtown.  N.  V 332 

leder,  Silherherg  &  C!o.,  ('in<'innati 375 

Field,  .1.  A.,  Manufactnriug  ("ompany,  St.  Louis,  Mn 409 

File  (N>ni)iany,  Nicholson,  Providence,  K.  I ,';0.5,  391 

Filer  tV'  Stowell  Company,  Milwaukee,  Wis 407 

FiHhl)ack,  (Jeorge  W.,  statement 94 

I'lour  industry,  addresses  on 203 

Flour  sales  in  West  Imlics 225 

Flour  triide  with — 

Iha/il 206,216 

Cnhaiiiul  Puert.i  Rico 206 

Fr.tn.  (> 226 

Food  adulteration 127 

Foreign  tar  ids: 

Argentina 616 

Anstralasia-- 

New  Sottth  W.iles 622 

New  Zealand 624 

giuM-nshind 624 

South  A>!8tn\lia 622 

Tiwmauia , 622 


634 


INDEX. 


»ii 


West  Australia 
Aiistr  ill-Hungary. 

Hel;;iuni 

Rra/il 

Canada 

Chile 


Foreign  tariffs— Continued.  Pa^e. 
Aiistr.'ilasia — Continued. 

Victoria 622 

622 

604 

604 

616 

60« 

616 

620 

616 

608 

614 

604 

616 

604 

604 

608 

618 

618 

618 

614 

624 

610 

606 

620 

610 

60(5 

610 

606 

618 

618 

614 

610 

614 

606 

606 

608 

608 

620 

620 


China 

Colombia 

Costa  KMca 

Cui.a 

Denmark 

iM'diidor 

Franco 

(itMinany 

Guatemala 

Guianas — Ikitlsh. 

Dutch  . 

French . 
Haiti 


Hawaii . . . 
Honduras. 
I  til 


;aly. 


.lajian 

Mexico 

N'ctlierlau<l8 
Niearafjua  .. 

Norway 

Paraguay... 


Puerto  Rico 

Salvador 

Santo  Di)mingo 

S])ain 

Sweden 

'i'nrkey ■ 

United  Kingdom 

Uruguay 

Venezuela 

West  Indies — 

British  Hahamiis 610 

.lamaica 612 

St.  Vincent 612 

Danish 612 

Dutch 612 

French — (iuada]oui)i>i 614 

Mart  in  ill  lie 612 

Fort  Smith  (Ark.)  Commercial  League 

France: 

H  r  e  ad  s  t  u  ffs , 562 

Hog  products 577 

Othei  provisions uHU 

Prohiliiting  the  import  of  cattle  IVom  the  United  States 141, 188 

Tariir 604 

Trade  with  Argentina. ...    588 

Trade  with  A)ts(ralasiii 590 

Tra<lo  with  Hrii/il ,^!ir>,596 

Trade  witii  (Juiiteuiala,  Costa  Rica,  and  Honduras .'i!t7,  .598 

TrMde  with  Spun  is  h  West  Indies    , alKi,  .")07 

Fronch  West  Indies,  tari .V 612-614 

Fruit  Kxeliaiii^e,  Semi-'l'mpic,  Uos  AngcJos,  (^al 170 

Fryhurg  Roller  Mills.  Fr.vbnrg.  Pa 312 

Furniture,  pianos,  and  organs,  circular  of  imiuiry 463 

Keplies  from — 

Dornette, .!.,  iVr  Bro.,  Cineinnnti,  <>liio 46r» 

Glolie  ('omi)any,  Cineiuuali.  Ohio 468 

Kiniliall,  W.  W..  Coinjuiny,  (  hiiajjo,  HI 464 

Mason  «Sr  Hamlin  Company 465 


INDEX. 


635 


PaRe. 

622 

622 
604 
604 
616 
608 
616 
620 
616 
608 
614 
604 
616 
604 
604 
608 
618 
618 
618 
614 
624 
610 
606 
620 
610 
606 
610 
606 
618 
618 
614 
610 
614 
60<} 
606 
.   608 
608 
620 
620 

610 
.  612 
.  612 
.  612 
.   612 

614 
.   612 

.   562 

.   577 

141,188 
.  604 
.  588 
.  5t»0 
5!  I."),  596 
507, 598 
5il(i.  597 
612-614 
17i» 
.  312 
.   463 

, .  465 

,.  468 

..  464 

..  465 


Furniture,  pianos,  and  orpana,  circular  of  inquiry — Continued.  Page- 
Replies  from — (Jon  till  lied. 

Marinette  &■  >'tMi(miinee  Box  Company,  Marinette.  Wis 466 

Standard  Sewing  Machine  Comi)any,  Cleveland,  Oliio 167 

Stork  &  Clarke  I'iano  and  Orijan  (Jouipaiiy,  (,'hieago.  111 466 

Wliite  Sewing  Machine  Coinpany,  Cleveland,  Ohio 468 

Gainesville,  Fla.,  Hoard  of  Trnde 159 

(iallagher,  Augustine,  Kansas  City 219 

Gates  Iron  Works,  Chicago,  111 406 

Gates,  John  W,,  Chicago,  111 265 

Geneva,  111.,  statement,  T.  B.  Evans 329 

Germany : 

Exports  and  imports 548 

Breadstnfl's 564 

Hog  jirodncts .578 

Other  provisions ;)83 

Prohibiting  imj)ort  of  cattle  and  fresh  bees f  from  the  United  Shites i:>7. 187 

Tariff 604 

Trade  with  Argentina 588 

Trade  with  Australasia .590 

Trade  with  Brazil 598, 599 

Trade  with  Spanish  West  Indies 600 

Trade  with  Central  America 601 

Oilman  Bros.,  Boston,  Mass 441 

Glass,  crockery,  etc.,  circular  of  inquiry 452 

Ee])lie8  from — 

Hartford  City  Glass  Company,  Hartford  City,  Ind 454 

Homer  Lauglilin,  I'.ast  Liverpool,  Ohio. 4.53 

R.  E.  Dietz  (ompany.  Xcw  York 4,56 

Union  Torcelain  Works,  Brooklyn,  N.  Y 455 

Glencoe,  Minn.,  Board  of  Trade 172 

Globe  Company 468 

Glover  &  Odendahl 540 

Goddard,  E.,  Flour  Mill  Company,  St.  1  .ouis,  Uo 323 

Goodrich,  B.  F.,  Company,  Akron,  Ohio 497 

Goshen  Milling  Company,  Goshon,  Ind 323 

Gould's  Manufacturing  Company,  Seneca  I-'alls,  N.  Y 306 

Governor  Works,  Akron,  Ohio 310 

(J race,  W.  R.,  &  Co 528 

Grain  exports  from  Argentina 98 

Grand  Island,  Nebr.,  letter  of  H.  T.  Oxnard 303 

Guatemala : 

Exports  and  imports 548 

Principal  articles  exported  and  inii)orted .556 

Tarift- 608 

Haiti : 

Other  provisions 585 

Tariff" 614 

Harrison  Bros.  &  Co.,  (>ray8  Ferry,  I'liiladelphia,  I'a 439 

Ilarter,  Isaac,  Comj)any,  Fostoria,  Ohio .335 

Haskell,  1  Edward  H.,  statements :!1.'{,  317 

Haydock  (Carriage  Comjiany 479 

Head  of  the  Lakes  Millers"  Association  of  Duluth  an<l  Sintcrior 173 

Heath  &  Mulligan  Manufacturing  Company,  Chicago,  111 446 

Herrmann,  Theo .521 

llilibard,  Spencer,  Bartlett  A  Co.,  Chicago .390 

HoiTnuin.  C,  &  Sou,  Enteri)rise,  Kans 324 

Hog  i)rodnct8,  total  exjjorts 577 

I  londuras: 

Exports  and  imports 548 

Principal  articles  of  exports  and  imports .557 

Taritr 610 

Hongkong: 

Mrc^adstuffs 572 

Huegely  Milling  Company,  Nashville,  111 339 

Imports  from — 
Argentina  to — 

France 5S8 

(iormanv 588 

United  Kiui;dom 588 


636 


INDEX. 


Imports  from — Continned.  P«ge- 

Australasia  to — 

Principal  countries 590 

Un itod  States 580 

Aastria-Hungary 518 

Brazil  to — 

France 5!)5 

Germany r>98.r.9!» 

United  Kingdom 5!(1 

United  States ;".  18. 519 

British  Guiana 'AS,  550 

British  West  In d ies 548,  552 

Central  Ameruiui  stati  s  to— 

France 595 

Germany tiOl 

United  Kinijdon) 592 

Cuba 548,553 

Germany 548 

Guatemala 548.556 

Honduras 5\X.  557 

Nicaragua 5 18,  5.58 

Salvador 548,  559 

Santo  Domingo 548,  555 

Spanish  West  Indies  to — 

France 596 

Germany 600 

United  Kingdom 593 

Puerto  Rico 548,554 

Indianapolis,  lud.,  Winter  Wlicnt  Millers'  League 163 

Iron  and  steel,  circular  of  incjuiry 380 

Replies  from — 

Alford  &  Horkele  Com].any 390 

Atlas  Tack  Corporation 395 

Baldwin  Locomotive  Works 382 

Brush  Klectric  Com  pany 388 

Cambria  Iron  Compa:  v 385 

Central  Iron  Works 383 

Cincinnati  Corrugating  ('oiii|):iiiy 400 

Dean  Bros.  Steam  l*an\p  Works 395 

Dederick,P.K 394 

Disston,  Henry,  &  Sons 387 

Edge  Moor  Brid"e  Works 395 

Hibbard,  Spencer,  Bartlet  t  &  Co 390 

Livingston  Nail  Compnny 396 

Maryland  Steel  Company 384 

Nail,  II.  P.,  Company 381 

Nicholson  File  Comi)any 391 

Northwestern  Malleable  Iron  Comp.iiiy 387 

Passaic  Holling  Mill  ( 'ompnuy 386 

Peerless  Manufacturing  Company 392 

Pratt  &  Cady  Ccmipany , 395 

Heading  Stove  Works 393 

Scovilb*  Manufacturing  Company 3H9 

Seidel  &  Hastings  Company 401 

Swank,  .lames  M 397 

Wood.  H.  I).,  tfcCo 402 

WilUs  Mann  facto  ring  Company 394 

International  Food  Company,  Minneapolis 487 

Italy,  tarilf 606 

Japan : 

Breadstuffs ' .573 

Imjioitaand  exports 110-116 

Tarilf 620 

.Tai>an  and  China,  trade  vritli 107 

.Iai)ane8e  trade  with  the  Tnited  States 109 

.larecki  Manufacturing  Comjiany,  Erie,  I'a 409 

Johnston  Harvester  Company,  Katavia,  N.  Y 431 

Jones,  C.  G.,  Oklahoma  City .'. 203 

Josephine  Moore  Company,  Chicago,  111 4.50 

Kausas  Millers' Association 182 


INDEX. 


637 


Page. 

.  590 
.  589 
.       548 

.  595 
598,  599 
.  591 
5.J8.  549 
54«,  550 
548, 552 

.  595 
.  HOI 
.  592 
548,  553 
.  548 
548.  556 
548.  557 
518,558 
548,  559 
548,  555 

.   596 

600 

.   593 

548, 554 

..   163 

..   380 

..  390 

..  395 

..  382 

..  388 

..  385 

..  383 

..  400 

..  395 

..  394 

..  387 

. .  395 

. .  390 

. .  :i9t) 

. .  384 

..  381 

. .  391 

..  387 

392 
. .  395 
. .       393 

389 
..  401 
. .  397 
. .  402 
. .  394 
. .  487 
..       60ti 

. .  573 
110-116 
. .  620 
..  107 
109 
..  409 
..  431 
..  203 
..  450 
..       182 


Kauft'man  Milling  Company,  St.  Louis,  Mo 343 

Keblor  Bros,  St.  Loiuh,  Mo 350 

Keystone  Mauiilactnriiig  Company,  Sterling,  111 436 

Keystone  Watch  ('as(!  ( !()nii)any,  Philadelphia 461 

Kingsbury,  F.  J.,  Watcrlmry,  Conn  411 

i^'ingshuul  &  Douglass  Maniifiiciuring  Company,  St.  Louis,  Mo 302 

Kimball,  W.W.,  Company 464 

Kohn,  Weil  &  Co 531 

Kurzman  Hros.,  New  York 486 

I, II ullaw- Dunn-Gordon  Company,  Cincinnati 418 

Liuiman  »fc  Kemp 538 

1  .anrus  Loomis,  Catlin  &  Co.,  New  York 541 

JjawreL.o  .lohnson  A,  Co 5',i9 

LeviM'ing,  Eugene,  president  Baltimore  Hoard  of  Trade 268 

Lexington  Holler  Mills  Company,  Lexington,  Ky 342 

Liberty  Machine  Works.  New  Yck 411 

Link  Belt  Kngiueering  Company,  Philadelphia,  Pa 422 

Link  Belt  Maciiinery  Company,  Chicago,  111  415 

Live  Stock  Exchange  of  St.  Loui;* 155 

Live  Stock  Exchange,  National,  Chicago 162,  185 

Live  stoi'k  industry 193 

Livingston  Nail  (  )mpany.  New  York 396 

Loai/.a  &  Co 536 

Londou,  dock  charges  and  ocean  bills  of  lading 259 

Longman  &  M.trtinez,  New  York 445 

Los  Angeles  Semi-Tropic  Fruit  Exchange 179 

Louisiiina  Sugar  and  Rice  Exchange,  Now  Orleans 173 

Louisville  and  Nashville  Railroad  Comjiany,  St.  Louis,  Mo 300 

liowell  Manufacturing  Company,  Lowell,  Mass 374 

Ly mansville  Comjiany,  Providence,  R.  1 309 

Lyon,  ( 'lenient  &  Greenleaf  Company,  Wauseou,  Ohio 318 

Machinery,  circular  of  inquiry 403 

Keplies  from — 

Atlas  Engine  Works 120 

Ball  &  Wood 408 

Black  &,  Cla wBon  Company 409 

Brass  and  Iron  Works  Company 421 

Cincinnati  Tool  Company 425 

Col  well,  A.  W.,  engineer,  etc 423 

Crane  Com]»any 419 

Detroit  Steel  and  Spring  Company 404 

Diamond  Machine  Company 410 

Draper,  Geo.,  &  Sons 405 

Field,  .1.  A.,  Manufacturing  Comi»any 409 

Filer  &  Stowell  Company 407 

Gates  Iron  Works 406 

Jarecki  Manufacturing  Company 409 

Kingsbury,  l'\  .1 411 

Laidlaw-Dunn-Gordon  Company 418 

Liberty  Machine  Works 411 

Link  Belt  Engineering  Company 422 

Link  Belt  Machinery  (Jonipiiuy 415 

Nordyke  &.  Marmon  ( !ompany 416 

Payne,  B.  W.,  &  Sons ' 417 

Peiton  Water  Wheel  Comjiany 422 

Springfield  Machine  Tool  Company 416 

Standard  Machinery  Comjjany 411 

Stillwcll-Bierce  &  Smith- Vaile  t'ompany 412 

Wallace  Manufacturing  Company 413 

Manslield,  Ohict,  Barn»vs  Manufacturing  Couipauy 311 

Manufacturers'  Associiat ion  of  Kings  and  Queens  Counties,  N.  Y 152 

Manufacturers  and  merchants,  replies  of,  Api)en(lix  J 293 

Manufacturing  Company,  Kingslaud  &■  Douglass,  St.  Louis,  Mo 302 

Mason  &  Hamlin  Company 465 

Marble,  .lerome  &  Co.,  Boston,  Mass 444 

Marinette  and  Menominee  Box  Company 466 

Mari(m  Manufacturing  Company,  Marion,  Ohio 432 

Marshall  &.  Co.,  Kearny,  N.  J 377 

Martiuflburg,  W.Ya.,  Busiueits  Meu's  Auooiation...... 161 


638 


INDEX, 


Pag*. 

Maryland  Steel  Company,  Baltimore,  Md 384 

Moat  ])r()(luct8  exported  from  Argentina 588 

Merchants'  Exdiangf,  Butialo,  N.  Y 170 

Merchants'  Exciianj-e  of  St.  Lonia 148 

Merchants  and  Hiisiness  Men's  Association,  Chester,  Pa 17!) 

Meiiden  Bronze  Company,  New  York 4()0 

Meridian.  Miss.,  Young  Men's  Business  I.eague 153 

Me.xico : 

Breadstntfs 567 

Hog  products 580 

Tariir 610 

Michigan  State  Millers'  Association 152 

MihfS  A  Son.  I'ranldort,  Ky 334 

Millbourne  Mills  Com])any,  Philadelphia,  Pa 3.35 

Miller  Lock  Co:i:p!iny,  Philadelphia,  Pa 483 

Millers'  Association  of  Northern  New  York,  Watertown,  N.  Y 177 

Millers'  National  Association  of  the  United  States 151 

Mills  and  milling  couipauies,  replies  from — 

Acme  Milling  Company 322 

Anchor  Mill  Company 333 

Aviston  Milling  Company 332 

Ballard  &  Ballard  Company 335 

Barber,  U.  K.,  &  Son 337 

Beruhanl,  Stern  &,  Co 340 

Bliss  Milling  Company 327 

Cleveland  Milling  Company 336 

Commercial  Milling  Company 337 

Cowgill  &  Hill  Milling  Company 349 

Cumberland  Mills '. 334 

Daisy  Roller  Mill  Company 341 

Dauidiin  Roller  Flouring  Mills 335 

FarwelKt  Rhines 332 

Fry  burg  Roller  Mills  Company 342 

Goddard  E.,  Flour  Mill  Company 323 

Goshen  Milling  Comi)any 323 

Harter,  Isaac,  Company 335 

Hoffman,  C,  &  Son 324 

Hnegley  Milling  Company 339 

Kautl'man  Milling  Company 343 

Kehlor  Bros 350 

Lexington  Roller  Mills  Company 342 

Miles  &.  Son 334 

Millbourne  Mills  Company 335 

Mosely  &  Motley  Milling  Company 322, 334 

New  York  Biscuit  Company 333 

Northwestern  Elevator  and  Mills  Company 344 

Regina  Flour  Mill  Company 338 

Saxony  Mills 321 

Sessinghaus  Milling  Comp.any 331 

Shelby  Mill  Company 346 

Sparks  Milling  Company 341 

Si)erry  Flour  Company 353 

Stanard,  E.  O.,  Milling  Company 320 

Star  and  Crescent  Milling  Company 331 

S wartley  Bros.  &  Co 335 

Tate,  Miller  &  Co 326 

Taylor  l?ros.  Milling  Comp.any 339 

Thompson  Milling  Company 333 

Touilinson,  Geo..  A-  Son i 333 

Victoria  Flour  Mills 323 

Weekly  Northwestern  Miller 328 

Milwaukee  Chamber  of  Commerce 149 

Minera'ized  Rubber  Company 371 

Minneapolis  Board  of  Trade 184 

Minneapolis.  Minn.,  statement  of — 

Bovey,  Charles  C 256 

Crosby,  .)(»hn , 251 

Pillsb'ury,  Charles  A 239 


INDEX. 


639 


Paks. 

384 
588 
170 
148 
179 
400 
153 

567 
580 
610 
152 
334 
335 
483 
177 
151 

322 

333 

332 

335 

337 

340 

327 

336 

337 

349 

334 

341 

335 

332 

342 

323 

323 

335 

324 

339 

343 

.   350 

342 

334 

335 

522,  334 

333 

344 

.   338 

321 

331 

846 

.   341 

.   353 

.   320 

.   331 

.   335 

.   326 

339 

.   333 

.   333 

323 

.   328 

149 

371 

184 

.  256 
.  251 
.   239 


Vain: 

MiBcellanoons  manufacturers,  circular  of  inquiry 482 

Kej)lies  I'roiii — 

IJfcker,  William,  Leatlier  Company 487 

Bloom,  Samuel,  &  Hduh 499 

Boul ton,  Bliss  &  Dallett 490 

Crane,.).  B.,  &  Co 492 

Crowu  J )iHtillcrie«  Company 501 

DobuttH  &  Daggett 486 

Dennis, . I.  A 497 

Dole  Bros,  ( 'omi)aii.v 491 

Etowah  Iron  Company 483 

Goodrich,  B.  F.,  C;om]»auy 497 

International  Food  Coiiijtaiiy 487 

Knr/.iiian  Bros 48(5 

Miller  Lo(!k  Company 483 

National  ( 'ash  Ix'ejjister  Company 488 

New  Orleans  Brewing  Association 498 

Parsons,  W.  H.,  &.  Co 497 

Peck -Williamson  Heating  and  Ventilating  Company 4M5 

Standard  oil  ( 'omi)any  ot  New  York 496 

Tolton,  Joseph  P 500 

Werner  Company 485 

Moline  Plow  Company,  Moline,  111 430 

Moorcs,  John,  Sous  ('ompany,  l{aritan,  N.J 434 

Moselv  «fc  Motlev  Milling  Company,  Kochester,  N.  V 322,  334 

MulfoVd,  U.K.,  A  Co.,  Philadelphia,  Pa 446 

Muncie  Wheel  Company 473 

Nail,  H.  P.,  Com))any,  Cleveland,  Ohio 381 

National  A.ssociation  of  Mauulacturers,  Philadelphia,  Pa 296 

National  Association  of  Wool  Manufacturers 171 

National  Cash  h'egister  Company,  Dayton,  Ohio 488 

National  l>ive  .Stock  Exchange 154 

National  Live  Stock  Exchange,  Chicago 162,  185 

National  Provision  Publishing  Company 359 

Netherlands: 

Breadstuffs 565 

Hog  products 578 

Other  provisions oKi 

Tariff 606 

Newfoundland,  attitude  of 70 

New  Jersey  State  board  of  agriculture 281 

New  Orleans  lircwing  A8S0(  iation.  New  Orleans,  La 498 

New  Orleans  Sugar  and  ]{ice  Exchange 173 

Newton,  Kans.,  Commercial  Club 

New  York : 

American  Cranberry  Trade  Company 330 

American  Paper  Makers'  Association 180, 313 

Associated  Manufacturers 157 

Biscuit  Comi^any 333 

Board  of  Trade  and  Transportation 176 

Central  and  South  American  Telegraph  Company 301 

Chamber  of  Commerce 176 

Cone  Export  and  Commission  Company 301 

Resolutions  by  the  le  jfislature 159 

Wholesale  Grocers'  Association 160 

New  York  and  Cuba  Mail  Steamship  Company 308 

Nicaragua : 

Principal  articles  exported  and  imported 558 

Tariff" 610 

Total  value  of  exports  and  imports 548 

Nicholson  File  Company,  Providence,  R.I 305 

Niederlein,  Gustavo,  The  Philadelphia  Museum 309 

North  Adams,  Mass  ,  Board  of  Trade 181 

Northampton  Board  of  Trade 154 

Northern  New  York  Millers'  Association,  Watertowu,  N.  Y 177 

Northwestern  Elevator  and  Mill  Company,  Toledo,  Ohio 344 

Northwestern  Malleable  Iron  Company,  Milwaukee 387 

Norton  Bros.,  Chicago,  111 .' 306 

Norton  Door  Check  and  Spring  Company 473 


640 


INDEX, 


Paga. 

Norrtyke  &  Marmon  Company,  Indiauapolis 416 

Obstacles  in  the  way  ol  tiailc 205 

Ocean  liillH  of  lading  and  London  dock  cliarjies 259 

Okliilioina  City  Winter  Wheat  MiilorH'  ABHociation 203 

O'Kcilly,  John  Fanniujj; 36G 

OrgaiiH,  pianoB,  etc.,  circular  of  iiKjuiry 463 

Koj)lieH  from.     (See  I'ianoH,  oiKimN,  etc.) 

Orwi{^Hl>urg,  Pa.,  committee  on  indiistiial  extension 156 

Oleri,  S 532 

Other  ])roviHion8,  total  exports 5H2 

Oxnard,  Henry  T.,  Grand  Island,  Nelir 303 

TaJmer,  Smith  &  Co.^  Newiirk,  N.  ,J 30i 

Paper  Makers'  Association,  New  Voik 180,  313 

Parks,  Davis  &  Co.,  1  )etroit,  Mich 272 

Parsons,  W.  H.,  <Si,  Co 497 

Passaic  Rollinj^Mill  Comi»any,  Pateraou,  N.  .J 386 

Patersou,  N.  J.,  Board  of  Trade ; 159 

Patterson,  Ramsey  &  Co 530 

Payne,  H.  W.,  &  Sons,  Elm  Ira,  N.  Y 417 

Peck,  William  E.,  &,  Co 515 

Peck-Williamson  Heating  and  Ventilating  ('om]>an,v,  Cincinnati,  Ohio 485 

Peerless  Manufacturing  Conipan.v,  I.oniss  ille.  Ky 392 

Pelton  Water  Wheel  Comjjany,  S;iii  I'rancisco 422 

Pensacola,  Fla.,  Chamber  of  Commerce 279 

Perkins,  Goodwin  &,  Co.,  New  York 304 

Philadelphia,  Pa.,  Ayres,  B 309 

Philadeli)hia,  Pa.,  Board  of  Trade 222 

Philadeljjhia,  Pa.,  Museum 309 

Phoenix  Silk  Manufacturing  Company 367 

Pianos,  organs,  and  furniture,  circular  of  incpiiry 463 

Keplios  from — 

Dornette, .).,  &  Bro.,  Cincinnati,  Ohio 465 

Globe  Company,  Cincinnati,  Ohio 468 

Kimball,  W.  W.,  it  Co.,  Chicago,  111 iU 

Mason  &  Hamlin  Comi)auy 460 

Marinette  and  Menominee  Box  Company,  Marinette,  Wis 466 

Standard  Sewing  Miudiine  Company,  Cleveland.  <  »liio 467 

Stork  &  Clarke  I'iano  and  Organ  Company,  Chicago,  111 466 

White  Sewing  Machine  Comjiany,  Cleveland,  Ohio 468 

Pillsbury,  Charles  A.,  statement,  Minneapolis,  Minn 239 

Pittsburg,  Pa.,  Chaml)er  of  Commerce 178 

Plaukinton  Packing  Company 364 

Plant  Steamship  Line,  Port  Tampa,  Fla 314 

Pomares  &.  C  ushman 616 

Pratt  &  Cady  Company,  Hartford,  Conn 395 

Price,  effect  upon  wheat 215, 220 

Principal  impi<rts  from  the  United  States  to  Canada 75 

Pr<)du(  ts  of  America,  restrictions  on 137 

Prouta  (."nra  Company,  Merideu,  Conn 443 

Providence,  R.  I.,  Lymansville  Company 309 

Provisions,  circular  of  inquiry 864 

Replies  from — 

Armour  »fe  Co.,  Chicago,  HI 355 

Cudahy  Bros.  &,  Co., Milwaukee,  Wis 365 

Cudahy  Packing  Company,  c:liiciigo.  Ill 357 

National  Provision  Publishing  Company,  New  York 359 

Plankinion  Packing  Comj)any,  Milwaukee,  Wis 364 

Puerto  Rico:  ^ 

Breadstufts ...  569 

Hog  )»roduct8 579 

Principal  articles  exported  and  imported 654 

Tarilf 814 

Total  value  of  exports  and  imports 548 

Puig,  Kmilio 632 

Reading  Stove  Works,  Reading,  Pa 893 

Reciprocity  and  retaliation  needed ISt 

Reciprocity  is  of  great  importance  to  Newfoundland 71 

Reciprocity  treaty  with  Canada,  1854 9 

'Regina.  Flour  Mill  Company,  8t.  Louis,  Mo — -..  838 


INDEX. 


041 


416 

.  205 
.  251) 
.  203 
.  36(.; 
.       463 

.  156 

.  532 

.  5«2 

303 

.  30i 
]«0,313 

.  272 

.  497 

.  386 

.  159 

.  530 

.  417 

.  515 

.  485 

.  392 

422 

.  279 

.  304 

.  309 

.  222 

.  309 

.  367 

.  463 

.      465 

.      468 

.      4C4 

465 

466 

.      467 

.       466 

.       468 

.       239 

.       178 

364 

314 

.       616 

.      395 

215,  220 

75 

137 

.      443 

.      309 

854 

.  355 

.  365 

.  357 

.  359 

.  364 

.      569 

.      579 

554 

614 

548 

.      532 

393 

MO 

71 

m 

..      838 


Replies  to  inquiries:  I'nge. 

A|;ricnltural  implements 428 

Broadstiift's 320 

Cars,  vehicles,  eto 471 

Clocks,  watclies,  fancy  goods 459 

Coinraercial  and  industrial  organizations 147 

Connnissonand  export  merchants 512 

Drugs,  modicines,  chemicals 439 

Furniture,  pianos,  and  organs 464 

Glass,  crockery,  etc 453 

Iron  and  steel 381 

Machinery 404 

Miscellaneous 483 

Provisions 355 

Resolutions  by  the  legislature  of  Now  York 159 

Retaliatory  measures  of  l-'rance..   228 

Restriction  on  American  products  by  foreign  countries 137 

Rice,  Sayward  &  Whitton,  Now  York 370 

Richards  Ar  Co.,  N.w  York 315 

Robinson  Chilled  Plow  Conij)any,  Canandaigna,  N.  Y 431 

Rock  liivor  Cotton  Company,  .Janesville,  Wis 368 

Rothschild  Hros.  »t  Co 517 

Salvador; 

Principal  articles  exported  and  imported 559 

Tarilf GIO 

Total  value  of  exports  and  imports 548 

Santo  Domingo: 

Priuciiial  articles  exported  and  imported 555 

Tariff 614 

Total  value  of  exports  and  imports 548 

Saxon V  Mills .321 

Schenck,  L.  F.  S.,  ]Marli)oro,  N.  J 2f<0 

Schicren,  Clias.  A.,  A:.  Co 372 

Scovillo  Manufacturing  Company,  Watcrbury,  Conn 389 

Scranton  Hoard  of  Trade 174 

Seabury  A  .Fohnson,  New  York 117 

Search,'  Theodore  C 300 

Seidel  &  Hastings  Company,  Wilmington,  Del 401 

Seixas,  A.  M '. 518 

Semi-Tropic  I'ruit  Exchange,  Los  Angeles,  CrJ 179 

Sessingliaus  Milling  Company,  St.  Louis,  Mo 331 

Sliarphss  Dye-Wood  Extract  Company,  Puiladeliihia -l.')0 

Sheffield  Car  Company ' 4S0 

Shelby  ISIMl  Comjtany,  Shelby,  Ohio 3t() 

Sionx  City  Commercial  Association 1,")1 

Smith,  Hogg  &,  Gardner 515 

Spain,  tari tf 606 

Sparks  Milling  Company,  Alton,  111 341 

Sperry  Flour  Company,  San  iiancisco,  Cal 3.'j3 

Springfield  Machine  Tool  Comjiany,  Sprlnglield,  Ohio 416 

Springfield  WoolenMills,  Springfield,  111 309 

Stand ar<l  Machinery  Company,  Mystic,  Conn 411 

Stauard,  E.  O.,  Milling  Company,  St.  Louis,  Mo 320 

Standard  Oil  Company  of  New  York 496 

Standard  Sowing  Machine  Company 467 

Star  and  Crescent  Milling  Company,  Chicago,  111 331 

Statements  of — 

Allerton,  W.  S.,  Chicago 193 

Argentine  legation 91 

Bovey,  Charles  C,  Minneapolis 256 

Clanly,  John  D.,  a  Representative  fn/m  the  State  of  Kentucky 286 

Cottefill,  Charles  A.,  Detroit 272 

Crosby,  .John,  Minneapolis 251 

Curtis',  W'illiam  E.,  Washington 79, 107 

Davis,  M.  H.,  Shelbv,  Ohio .  t 209 

Donise,  D.  D '. 281 

Diez,  L.  Rodiguez,  Montevideo 101 

Farrar,  Edward,  Toronto.  Caiuula 63 

Fishback,  George  W.,  secretary  of  legation,  Buenos  Ayrea 94 

H.  Eep.  22C3 41 


642 


INDEX. 


.( 1 


:! 


J 


StatiiiiiPiits  of — Contiimed. 

Ualliighor,  Au^UNtin,  Kansas  City 

Gates,  John  VV.,  Cliicu|i(o 

GomM'h  Manufacturing  Company,  Seneca  Kails,  N.Y 

Jones,  {'.  C,  Oklahoma  City 

J.eveiing,  Kugcine,  Baltimore,  Md 

Nicholson  File  Comjjany,  I'rov  idcnco,  R.  I 

I'iilslmry,  Charles  A.,  Minnoaiiolis 

Schenck,  L.  F.  S.,  Marll.oro,  N.J 

Stewart,  (J.  Morton,  Haltimore,  Md 

Thomi)8on,  \V.  II.,  Chicago 

Thurber,  F.  J$.,  New  York 

^Vi!ey,  H.  W 

Statistical  tables  relating  to  for(Mgn  commerce 

Stetson,  John  B.,  Comi>;iiiy.  rhiliidelpbia,  I'a 

St('wart,  C.  Morton,  Hiiitimore,  Md 

Ktilhvell-Hicrce&  Smith- Vaile  Company,  Dayton,  Ohio 

Stoddaril  Manufacturing  Company,  Dayton,  Ohio 

Stork  &  Clark  Piano  and  Organ  Comj)any 

St.  Louis  i.ivc  Stock  Exchange 

St.  Louis  Manufacturing  Company 

Substances  used  for  coloring  and  preserving  meats  t-n  (icruiany. 

Sugar,  Henry  T.  Oxnard 

Sugar  and  K'lcelCxchauge,  Now  Orleans 

SuHsdortt',  Zaldo  A:  Co 

Swank,  .lanu's  M.,  general  manager  Iron  and  Steel  Association  .. 

Swartley  JJros.  &Co.,  Doylestowu,  Pa 

Sweden  and  Norway; 

Breadstufls 

Hog  jiroducts 

Other  provisions 

TaritVs 

Tam])a,  Fla.,  Plant  Steauiship  Line 

'ruriflH.  foreign 

Tiite,  M illcr  A  Co.,  l?.altimore,  Md 

Taylor  Hros.  Milling  Company,  Quincy,  111 

Textiles,  circular  of  inquiry 

liejdics  froju — 

Americ;ui  Multiple  Fabric  Comjiaiiy 

Briuham,  Hopkins  &  Co 

■    Catlin  &  Co 

Contoocook  Mills  Company 

Fairmont  Wor.sted  Mills 

Feder,  Silberberg&  Co 

Lowell  Manufacturing  Companv 

Marshall  &  Co " 

Mineralized  Rubber  Company 

Ph(cnix  Silk  Manufacturing  Company 

Rice,  Sayward  &  Whitteu 

Scliieren,  Chas.  A.,  &  Co 

Siiringtield  Woolen  Mills 

Stet.son,  John  15.,  Comj)any 

Turner,  .J.  Spencer... 

Thompson,  \V.  II 

Thomiison  Milling  Company,  Lockport,  N.  Y 

Thurber,  F.  H.,  New  York 

T<)l)acco  Hoard  of  Trade,  Clarksville,  Tenn 

'i'olton,  .Joseph  P.,  PiostDU,  Mass 

Toudinson,  Geo.,  &.  Son,  Perry,  N.  Y 

Trade  with — 

Argentina 

China  and  Japan 

Mexico 

Trautman,  Jac.  &  Co.,  New  Orleans 

Tricycle  Manufatituring  Comijany 

Tuixlo,  Miss.,  Board  of  Trade 

Turkey,  tariff 

Turner;  J.  SiJcncer,  New  York 


ui'J 


Pajjn. 
219 
li()5 

a()6 

203 
MS 
305 
1.'39 
280 
2(i9 
199 
312 
127 
r.l8 
:i()9 
304 
112 
•132 
4t)(j 
155 
302 
128 
303 
173 
,  .■)33 
397 
335 

nfi6 
579 
584 
(i06 
314 

(;04 

326 
339 
366 

372 
370 
378 
371 
3()8 
375 
374 
377 
371 
3(57 
370 
372 
369 
369 
376 
199 
333 
312 
175 
500 
333 

79 
107 
231 
311 
474 
177 
(>0S 
376 


INDEX. 


643 


.  219 

.  -'()5 

.  3(J6 

.  203 

2(58 

.  305 

.  239 

.  280 

.  2()9 

199 

.  312 

.  127 

.  MS 

:i(j9 

.  30i 
.  112 
.   132 

4()() 
.   155 

302 
.  128 
.  303 
.   173 

r.;j2, 533 

397 
.   335 

.  5fi6 

.  579 

,.  584 

.  606 

.  3U 

.  t>()4 

.  326 

.  339 

.  366 

.  372 

.  370 

.  378 

.  371 

368 

.  375 

.  374 

.  377 

.  371 

.  367 

.  370 

.  372 

, .  369 

369 

, .  376 

. .  199 

..  333 

,.  312 

..  175 

..  500 

..  333 

79 
107 
.  -  231 
..  311 
..  174 
..  177 
. .  608 
..   376 


United  Kin>,'<lora:  i'»K«- 

Jir<-ii(l.itiiltH 561 

Yl(>K  jiroducts 578 

OtlHT  provisions 584 

Tiirill' 60-i 

Tra<lo  witli — 

Argontiiia 588 

Aiiatralasia 590 

IJiazil 591,592 

(.'eiitral  America 592,593 

Spaiiisli  West  Iiulics 593,594 

Urnj^nay,  hcof  exported 102 

Various  industries 265 

Vehicles,  cars,  etc.,  circular  of  inquiry 470 

Keplies  from — 

ISrowuell  Car  Canipany,  St.  Louis,  Mo 473 

Cliattanoofja  Car  and  Foundry  Comi)any 474 

Columbus  HufiKy  Company,  Columbus,  Ohio 474 

Dash  and  Carriage  Goods  Company,  Cincinnati,  Ohio 479 

llaydock  Carriage  Company,  Cincinnati,  Ohio 479 

Mnncie  VVlieel  ('ompany,  Muncie,  111 473 

Korton  Door  Check  iind  Sr)ring  Comi)any,  Boston 173 

Shellield  Car  Company,  Three  Rivers,  Mi'di 480 

Tricyclo  Manufacturing  Com])any,  Springlield,  Ohio 474 

Welis  tV  Krench  Comi)any,  Cliicago,  111 471 

Velasco,  Tox.,  Commercial  Club 180 

Veno/nela: 

Hreadstuffs 575 

Hog  ])roduct8 581 

Other  provisions 585 

Taritr 620 

Victoria  Flour  Mills 323 

Wtillaco  Manufacturing  Com]>any,  Frankfort,  Ind 413 

Wasl) burn-Crosby  Company,  Minneapolis,  Minn 251 

Watches,  clocks,  ifancy  goods,  circular  of  inquiry 458 

Keplies  from — 

Anson ia  Clock  Company,  New  York 459 

Keystone  Watch  Case  Company,  riiiladelphia,  I'a 461 

Meriden  Bronze  Comi)any,  New  York 460 

Ware,  .Tas.  A.,  Whitocastle,  La 301) 

Watertown.N.  Y.,  Farwell  &  Khines 332 

WaiiseoM.  Ohio,  Lyon  Clement  iV.  Greenleaf  Company 318 

Weekly  Northwestern  Miller 328 

Wells  &  French  Company 471 

Werner  Comjtaiiy,  Chicago,  111.,  and  Akron,  Ohio 485 

West  Indies,  sales  of  Hour 225 

Wheat : 

Effect  of  reciprocity  arrangements  upon  the  price  of 215,  220 

Uruguay 101 

White  Sewing  Machine  Company 468 

Wholesale  Grocers'  Association  of  New  York 160 

Winter  Wheat  Millers'  Association,  Oklahoma  City 203 

Winter  Wheat  Millers'  League,  IndiaTiai)oli8,  Ind 163 

Winter  Wheat  Millers'  League,  Shelby,  Ohio 209 

Wiley,  H.W 127 

Wilks  Manufacturing  Company,  Chicago,  111 ;>94 

Williams,  Richardson  &  Co 536 

Wilson  law,  ellect  of,  in  Canadfi 72 

Wood,  Fred.  A.,  Winterport,  Me 310 

Wood,R.D.,  «fe  Co.,  Philadelphia,  Pa 402 

Wool 96,  103 

Wool  Manufacturers'  National  Association 171 

Wrampelmcicr.  T.  .1.,  San  I'raneisco 303 

Young  Men's  Business  League,  Meridian,  Miss 153 


